Microsoft 365 Price Increase 2026: Cheaper Ways to Get Office

The Microsoft 365 price increase took effect on 1 July 2026 for commercial plans, raising US list prices for Business Basic, Business Standard, Office 365 E3 and Microsoft 365 E3 and E5, while Business Premium stayed at $22. Home plans rose earlier, in January 2025. Here is what changed, who pays more, and the cheaper ways to get Office.

New prices were checked against Microsoft's US plan pages at the time of writing (November 2026). Local-currency prices differ by country, and partners may quote differently.

How much did Microsoft 365 prices go up in 2026?

From 1 July 2026, Microsoft raised US list prices by $1 to $3 per user per month on most commercial suites: Business Basic rose from $6 to $7, Business Standard from $12.50 to $14, Office 365 E3 from $23 to $26, and Microsoft 365 E3 and E5 by $3 each. Business Premium did not change.

Microsoft announced the change in December 2025 in its Microsoft 365 capabilities and pricing update, linking the rise to added security, management and Copilot Chat features. Frontline F1 and F3 plans also increased.

In percentage terms, the small-business plans moved most: Business Basic by about 17% and Business Standard by 12%. For a ten-person firm on Business Standard, that is an extra $180 a year at US list prices.

Did Microsoft 365 Personal and Family prices go up too?

Yes, but earlier. In January 2025 Microsoft added Copilot features to Microsoft 365 Personal and Family and raised US prices from $69.99 to $99.99 a year for Personal and from $99.99 to $129.99 for Family. Those remain the US list prices at the time of writing (November 2026).

Microsoft's consumer plan comparison now also lists Microsoft 365 Premium at $199.99 a year, aimed at heavier Copilot users. Existing subscribers were offered "Classic" Personal and Family plans without Copilot at the old price for a limited time; availability depends on your account.

The 2026 rise on business plans therefore did not change home pricing, but it reinforced the trend: subscriptions keep adding features, and the bill rises with them.

Why did Microsoft raise Microsoft 365 prices?

Microsoft says the 2026 increase reflects new capabilities added to the suites, including Copilot Chat for all users, stronger email and link protection from Defender for Office 365 in several plans, and Intune endpoint management features in the E3 and E5 tiers. It is the first broad commercial list-price rise since 2022.

Cause and effect: bundling security and AI tools into every seat means you pay for them whether or not you use them. A two-person firm that only needs Word, Excel and Outlook absorbs the same rise as one that uses every Intune feature.

That is why the price rise matters most to small offices and home users who mainly need the desktop apps, and least to organisations that were already buying those extra tools separately.

Who is affected by the Microsoft 365 price increase?

New customers pay the new prices from 1 July 2026. Existing commercial customers on annual or multi-year terms generally keep their current price until their next renewal after that date, then move to the new rate. Business Premium customers see no list-price change, and consumer plans were not part of the July 2026 change.

Monthly billing costs more than annual billing. On Microsoft's business plan comparison, Business Standard is $14.00 per user per month paid yearly, but $16.80 per user per month on a monthly subscription.

What we commonly see: small businesses discover the increase at renewal rather than in July, because their annual term shielded them until then. Checking the renewal date in the Microsoft 365 admin centre avoids a surprise invoice.

How can I reduce my Microsoft 365 bill after the increase?

You can cut a Microsoft 365 bill by paying annually instead of monthly, removing unused licences, moving staff who only need email and Teams down to Business Basic, and choosing the "no Teams" plan variants where your region offers them. Each change works independently, so most small offices can combine two or three.

1. Open the Microsoft 365 admin centre > Billing > Your products and note each plan's renewal date and seat count.
2. Compare assigned licences under Users > Active users with the seats you pay for, and remove leftovers from former staff.
3. Identify users who never open the desktop apps; Business Basic gives them web and mobile Office plus email.
4. Switch monthly subscriptions to annual billing at renewal if your headcount is stable.

Microsoft also sells "no Teams" versions of its suites in many markets; on its US business page, Business Standard without Teams is listed at $10.79 per user per month paid yearly. That only helps if you use another meeting platform.

What is the cheapest way to get Microsoft Office in 2026?

The cheapest way to get the full Office desktop apps for the long term is a one-time Office 2024 licence, because you pay once and Microsoft supports it until 9 October 2029. For light use, the free Office web apps cost nothing. Subscriptions only win if you need their cloud storage, Copilot or business email.

For Windows users who want the most complete one-time suite, Office 2024 Professional Plus for Windows includes Word, Excel, PowerPoint, Outlook, OneNote and Access; see the current price on the product page. Mac users should look at Office 2024 Home & Business for PC and Mac instead.

Can I use Office without a subscription?

Yes. Office 2024 is a perpetual licence: you buy it once, install it on one computer and use it without renewals. It does not include Copilot, 1 TB of OneDrive or Teams, and it receives security updates but not new features. It keeps working after support ends, though without further security fixes.

Microsoft still sells Office 2024 alongside Microsoft 365. Our guide to whether there is an Office 2025 explains why 2024 remains the current one-time release.

Beware of listings that promise a "lifetime" Microsoft 365 account. Microsoft does not sell one; our Office 365 lifetime licence explainer sets out what those offers really are.

Should a small business switch from Microsoft 365 to Office 2024?

A small business should switch only if it does not rely on what the subscription provides beyond the apps: hosted Exchange email, Teams, SharePoint, OneDrive sharing and central admin. Many firms keep Business Basic for email and Teams, then add one-time Office 2024 licences for the desktop apps, which avoids paying for Business Standard.

That hybrid works because Business Basic includes web and mobile Office apps but not the installed desktop versions. Office 2024 fills that gap on each PC.

Advanced nuance: Microsoft only supports Office LTSC 2024 for connecting to Microsoft 365 services until 9 October 2029, so plan to replace those desktop licences before then. Subscription apps never face that cut-off because they update continuously.

Buying for several seats? The business quote form handles multi-licence orders. If you are timing a purchase, our Black Friday 2026 software deals guide covers what to check before buying in the sales.

Frequently asked questions

When did the Microsoft 365 price increase take effect?

The commercial price increase took effect on 1 July 2026. Microsoft announced it in December 2025, giving customers about seven months' notice. Existing customers on annual terms typically see the new price at their first renewal on or after 1 July 2026, while new customers pay the new rate immediately.

Is Microsoft 365 Business Premium more expensive in 2026?

No. Business Premium stayed at $22.00 per user per month (US list, annual commitment) after 1 July 2026, while Business Standard rose to $14.00. That makes the gap between Business Standard and Business Premium smaller than before, which is worth considering if you need Intune or Defender for Business.

How much is Microsoft 365 Family per year now?

At the time of writing (November 2026), Microsoft's US list price for Microsoft 365 Family is $129.99 a year or $12.99 a month, covering up to six people. Prices differ by country, so check Microsoft's store for your region before comparing with a one-time Office licence.

Does Office 2024 include Copilot?

No. Office 2024 is a one-time purchase that does not include the services that come with a Microsoft 365 subscription, and Copilot features in Word, Excel and PowerPoint are tied to Microsoft 365 plans. If AI drafting and analysis inside the apps matter to you, a subscription is required.

Will Microsoft 365 prices go up again?

Microsoft has not announced another commercial list-price rise after July 2026 at the time of writing. Prices can also change through currency adjustments in individual countries, so businesses outside the US should watch for local notices from Microsoft or their licensing partner before renewals.

Related guides

• Microsoft Office versions compared: 2016, 2019, 2021 and 2024
• Office 2024 Home & Business vs Professional Plus
• Install Microsoft 365 apps on up to five devices
• Office 2024 Professional Plus: download, install and activate

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