Microsoft 365 Commercial Pricing is Changing on July 1, 2026
Microsoft is adjusting the cost of most commercial Microsoft 365 SKUs worldwide and adding new capabilities to many of them. This is the full breakdown of the new per-user prices, the percentage change from today, and the features being included.
- Effective: July 1, 2026
- Average Increase: 5% – 33% (Varies by SKU)
- SKUs Affected: 25+ commercial SKUs (Enterprise, Business, Frontline, and standalone components)
- What's Added: 10+ new features (Intune, MDO P1, Copilot Chat, PKI, and more)
What's Happening
On July 1, 2026, Microsoft will adjust prices on most commercial Microsoft 365 SKUs and add new features to many of them. The changes apply worldwide, with the largest percentage increases concentrated on Frontline (F1 / F3), Windows Enterprise per device, and Microsoft 365 Apps.
If your organization buys Microsoft licensing through Nexus, no action is required from you. We'll surface the impact on your invoice ahead of your next renewal and walk through right-sizing options if any SKUs no longer make sense for your team.
Key Dates:
July 1, 2026 — new per-user prices take effect on renewals and new orders.
2026 (rolling) — feature additions become available on both Teams and no-Teams SKUs.
About Pricing: Annual Commitment
Every price on this page is the annual-commitment rate: the per-user monthly figure when you commit to a one-year (or longer) term, billed annually or monthly within that term. The month-to-month subscription rate is roughly 20% higher per user, in exchange for the flexibility to cancel or reduce seat counts each month.
Enterprise Suites
Microsoft 365 E3 / E5 and Office 365 E1 / E3 / E5. Each suite is sold in two variants — with Teams and without Teams.
Microsoft 365 & Office 365 — Enterprise
Per user / month∙Billed Annually
| With Teams | Without Teams |
|---|---|
| SKU | Old |
| --- | --- |
| Office 365 E1 | — |
| Office 365 E1 Plus | — |
| Office 365 E3 | $23.00 |
| Office 365 E5 | $38.00 |
| Microsoft 365 E3 | $36.00 |
| Microsoft 365 E5 | $57.00 |
Read: Old → New is the per-user list price change. % change is the increase from today's commercial rate. New prices effective July 1, 2026.
Business Suites
Microsoft 365 Business Basic, Standard, and Premium. Business Premium pricing is unchanged. Basic and Standard both increase, and most plans now include an additional 50GB of mailbox storage.
Microsoft 365 Business
Per user / month∙Billed Annually
| With Teams | Without Teams |
|---|---|
| SKU | Old |
| --- | --- |
| Microsoft 365 Business Basic | $6.00 |
| Microsoft 365 Business Standard | $12.50 |
| Microsoft 365 Business Premium | — |
| Microsoft 365 Apps for Business | $8.25 |
What's added on Business tiers: +50 GB mailbox storage on Basic, Standard, and Premium. SafeLinks Lite on Basic and Standard. Copilot Chat enhancements and Chat Analytics across all three.
Frontline Suites
Microsoft 365 F1 and F3 — for shift, field, and frontline staff. These see the largest percentage increases in the entire commercial catalog, but they remain the lowest absolute prices in Microsoft 365.
Microsoft 365 Frontline
Per user / month∙Billed Annually
| With Teams | Without Teams |
|---|---|
| SKU | Old |
| --- | --- |
| Microsoft 365 F1 | $2.25 |
| Microsoft 365 F3 | $8.00 |
What's added: Copilot Chat enhancements and Copilot Chat Analytics on both F1 and F3, with or without Teams.
Standalone Components
Standalone SKUs you can buy outside the suites — useful when you need a single capability (e.g. Defender, Purview, EMS, Entra) but not a full M365 license.
Standalone: Per User / Month
Billed Annually∙Effective July 1, 2026
| SKU | Old | New | Change |
|---|---|---|---|
| Purview Suite | — | $12.00 | |
| Defender Suite | — | $12.00 | |
| Windows E3 | $6.63 | $7.63 | 15% |
| Windows E5 | $11.80 | $12.80 | 9% |
| EMS E3 | $10.60 | $12.00 | 13% |
| EMS E5 | $16.40 | $18.00 | 10% |
| Entra ID P1 | $6.00 | $7.00 | 16% |
Per-device SKUs
Per-device pricing applies to shared endpoints — kiosks, shop-floor PCs, classroom carts, shift-worker stations. Windows Enterprise per device receives the single largest percentage increase in this update.
Per Device / Month
Shared endpoints∙Billed Annually
| SKU | Old | New | Change | What's added |
|---|---|---|---|---|
| Windows Enterprise (per device) | $5.84 | $7.63 | 31% | Basic resiliency features, Software Assurance |
| Microsoft 365 Apps (per device) | $36.00 | $42.00 | 17% | No new features bundled |
What's Being Added
Most price increases bring new capabilities into the suite. These additions apply to both the Teams and no-Teams variants and roll out across 2026.
Microsoft 365 E3 (Enterprise)
- Intune Remote Help
- Intune Advanced Analytics
- Intune P2
- MDO P1 (Microsoft Defender for Office)
- Copilot Chat enhancements*
- Copilot Chat Analytics
Microsoft 365 E5 (Enterprise)
- Everything added to M365 E3, plus:
- Intune Endpoint Privilege Management
- Intune Enterprise Application Management
- Microsoft Cloud PKI
- Copilot for Security
Office 365 E1 (Enterprise)
- SafeLinks Lite
- Copilot Chat enhancements*
- Copilot Chat Analytics
Office 365 E3 (Enterprise)
- MDO P1 (Microsoft Defender for Office)
- Copilot Chat enhancements*
- Copilot Chat Analytics
Office 365 E5 (Enterprise)
- Copilot Chat enhancements*
- Copilot Chat Analytics
EMS E3 & EMS E5 (Mobility)
- Intune Remote Help
- Intune Advanced Analytics
- Intune P2
- EMS E5 inherits these via EMS E3.
Windows E3 (Windows)
- Quick Machine Recovery (QMR)
- Post-quantum security APIs
Business Basic & Standard (Business)
- +50 GB mailbox storage
- SafeLinks Lite
- Copilot Chat enhancements*
- Copilot Chat Analytics
Business Premium (Business)
- +50 GB mailbox storage
- Copilot Chat enhancements*
- Copilot Chat Analytics
Frontline F1 & F3 (Frontline)
- Copilot Chat enhancements*
- Copilot Chat Analytics
A Copilot Chat enhancements include context-aware intelligence and Agent Mode in Word, Excel, PowerPoint, and Outlook. Cards with a Copper accent indicate the SKUs that are receiving the most substantial additions.
Nonprofit Pricing
Nonprofit pricing is tied to commercial pricing through a fixed percentage discount, so it adjusts in step. A representative sample of new nonprofit per-user rates is below — your Nexus account team can pull the full list on request.
Same percentage discount, new base rates.
Nonprofit SKUs follow commercial rates with a fixed discount, so every SKU that increases on the commercial side moves proportionally on the nonprofit side. Business Basic remains free for eligible nonprofits.
| SKU | New Rate |
|---|---|
| Microsoft 365 E3 | $9.00 -> $9.75 |
| Microsoft 365 E5 | $22.80 -> $24.00 |
| Office 365 E3 | $5.75 -> $6.50 |
| Microsoft 365 F3 | $2.00 -> $2.50 |
| Business Standard | $3.00 -> $3.50 |
| Business Basic | Free |
| Business Premium | $5.50 |
Effective July 1, 2026. Eligibility verification still required.
Notes & Key Dates
Things to Know
- All prices on this page are USD list per user / month on an annual commitment, before any volume or partner discounts. The month-to-month subscription rate is 20% higher per SKU.
- Pricing is subject to change and may vary by country and currency.
- Office 365 E1 Plus SKUs (with and without Teams) are lead-status SKUs available only in specific regions.
- Features and product specifications are set by Microsoft and may change before release. The capabilities listed for upcoming additions reflect Microsoft’s published roadmap at the time of writing.