Microsoft 365 Pricing and Packaging Updates
Published: April 20, 2026
Microsoft has announced a global price and packaging update for select commercial, frontline, and government suites. While pricing updates take effect July 1, 2026, new capabilities will begin rolling out as early as June 2026.
Commercial Pricing Adjustments
Below are the scheduled percentage increases for commercial suites. Existing customers will remain on their current pricing until their next renewal date.
Enterprise Suites
| Product | Increase |
|---|---|
| Office 365 E3 | 13% - 14% |
| Office 365 E5 | 8% - 10% |
| Microsoft 365 E3 | 8% - 11% |
| Microsoft 365 E5 | 5% - 6% |
Business & Frontline
| Product | Increase |
|---|---|
| M365 Business Basic | 16% - 23% |
| M365 Business Standard | 12% - 16% |
| Microsoft 365 F1 | 33% - 43% |
| Microsoft 365 F3 | 25% - 29% |
New Packaging & Capabilities
To offset the price adjustments, Microsoft is significantly expanding the features included in these suites. Rollout completes by August 1, 2026.
| Suite Level | Included Capability Additions |
|---|---|
| Enterprise (E3/E5) |
Security: Microsoft Defender for Office 365 Plan 1, Security Copilot (E5), and URL time-of-click protection. Management: Intune Remote Help, Advanced Analytics, Intune Plan 2, and Cloud PKI. |
| Business Suites |
Storage: +50GB Email capacity. Security: URL time-of-click protection. AI: Copilot Chat enhancements (Inbox/Calendar awareness). |
| Frontline (F1/F3) | AI: Copilot Chat enhancements and Chat Analytics. |
Government & Non-Profit Impact
- Non-Profits: Pricing will be adjusted in line with commercial rates, maintaining standard percentage discounts.
- Government: For suites seeing increases over 10% (such as G3/F1), Microsoft will phase the increase over multiple years to comply with federal regulations.
- Feature Parity: Government tenants will receive updates aligned with their specific compliance frameworks (GCC, GCC High, DoD) following necessary validation.
Note: The changes will apply globally with local market adjustments for our commercial products and nonprofit pricing will be adjusted in line with commercial pricing. In addition to commercial products, today we also announced changes to the Microsoft 365 Government Suites.
Frequently asked questions
Microsoft is committed to delivering continuous innovation and value through Microsoft 365. Over the past several years, we’ve invested deeply in security, compliance, productivity, AI, and IT management— helping organizations stay productive, secure, and competitive in a rapidly evolving landscape. This change reflects the significant innovation delivered over the past several years and the added value customers will gain with new additions to the suites, including major advancements in AI (ex. Copilot Chat, Copilot Chat Analytics), security (ex. Microsoft Defender for Office P1), and IT management (ex. Intune Suite).
The new commercial pricing for Microsoft 365 suites and standalones will be effective starting July 1, 2026. This change applies to both new and renewing customers globally, with local market adjustments as appropriate. Existing customers will see the new prices at their next renewal after July 1, 2026.
The price increase will apply to a broad range of products, including:
- Office 365 E3 and E5
- Enterprise Mobility and Security (EMS) E3 and E5
- Windows E3 and E5
- Microsoft 365 E3 and E5
- Microsoft 365 Apps
- Microsoft 365 Business Basic, Business Standard, Apps for Business
- Microsoft 365 F1 and F3
- Microsoft 365 G3, Microsoft 365 G5
- Microsoft 365 GCC F1, Microsoft 365 GCC F3
- Office 365 G1, Office 365 G3
- Entra P1 and P2
- Per device SKUs: Windows Enterprise, Microsoft 365 Apps
Alongside the price update, Microsoft is introducing additional security, storage, and AI capabilities. These enhancements are designed to strengthen security and simplify IT management.
New capabilities will begin to roll out CY26 Q3. Customers will receive a 30‑day notice in Message Center before the update becomes available in their tenant. Roll out of the following features will be complete by August 1, 2026: Microsoft Defender for Office 365 Plan 1, Intune Remote Help, Intune Advanced Analytics, Intune Plan 2, Intune Privilege Management, Microsoft Cloud PKI, and Intune Application Management.
New capabilities will begin to roll out CY26 Q3. Customers will receive a 30‑day notice in Message Center before the update becomes available in their tenant. Roll out of the following features will be complete by August 1, 2026: Microsoft Defender for Office 365 Plan 1, Intune Remote Help, Intune Advanced Analytics, Intune Plan 2, Intune Privilege Management, Microsoft Cloud PKI, and Intune Application Management.
All qualifying SKUs will receive the new features as they roll out in 2026, regardless of the price paid or agreement term.
The price increase reflects the overall value delivered across the suite over the last several years, including new security, productivity, and management features—not just individual capabilities.
The price increase applies globally, with local market adjustments in certain regions to reflect currency and market conditions.