Microsoft 365 Price Increase 2026: What You Need to Know (And How to Save)

If you're using Microsoft 365 or Office 365 for your business or personal productivity, there's important news you need to know: Microsoft is raising prices globally starting July 1, 2026. This isn't a small adjustment—price increases will range from 5% to 17% depending on your plan, affecting millions of subscribers worldwide.

Whether you're a small business owner, IT manager, or individual user, this price hike will impact your budget. But here's the good news: you can still lock in current pricing and save significantly if you act before the deadline. In this guide, we'll break down everything you need to know about the Microsoft 365 price increase 2026, which plans are affected, and exactly how to buy smart before prices go up.

Which Microsoft 365 and Office 365 Plans Are Affected?

Microsoft's 2026 pricing changes will impact nearly all commercial and enterprise subscription plans. Here's a detailed breakdown of the Microsoft 365 new pricing structure:

Microsoft 365 Business Plans

• Microsoft 365 Business Basic – Increasing by approximately 9%
• Microsoft 365 Business Standard – Increasing by approximately 11%
• Microsoft 365 Business Premium – Increasing by approximately 13%

Microsoft 365 Enterprise Plans

• Microsoft 365 E3 – Increasing by approximately 12%
• Microsoft 365 E5 – Increasing by approximately 15%
• Microsoft 365 F3 (Frontline) – Increasing by approximately 8%

Office 365 Enterprise Plans

• Office 365 E1 – Increasing by approximately 5%
• Office 365 E3 – Increasing by approximately 10%
• Office 365 E5 – Increasing by approximately 14%

Government and Education Plans

• Microsoft 365 Government plans (GCC, GCC High) – Increasing by 8-12%
• Office 365 Government plans – Increasing by 6-11%
• Education plans may see smaller increases or exemptions (check with Microsoft for specifics)

Note: Consumer plans like Microsoft 365 Personal and Family are not included in this announcement, though Microsoft may adjust those separately.

Why Is Microsoft Increasing Microsoft 365 Prices?

Microsoft has cited several reasons for the Microsoft Office price hike, all tied to the significant investments they've made in platform improvements:

1. AI-Powered Features and Copilot Integration

Microsoft has integrated advanced AI capabilities across the entire Microsoft 365 suite, including Copilot for Word, Excel, PowerPoint, Outlook, and Teams. These AI tools require massive computational resources and ongoing development, which Microsoft is now passing on to subscribers through higher subscription costs.

2. Enhanced Security and Compliance

With cyber threats evolving rapidly, Microsoft has invested heavily in zero-trust security architecture, advanced threat protection, and compliance tools. Features like Defender for Office 365, data loss prevention, and encrypted email all require continuous updates and infrastructure improvements.

3. Cloud Infrastructure Expansion

Microsoft cloud pricing reflects the company's ongoing expansion of Azure data centers worldwide, improved uptime guarantees, and faster performance. The global cloud infrastructure that powers Microsoft 365 requires billions in annual investment.

4. Continuous Feature Updates

Unlike perpetual licenses, Microsoft 365 subscriptions include regular feature updates, new apps, and platform improvements. Microsoft argues that the value delivered has increased significantly since the last major price adjustment.

While these improvements are real, the bottom line is clear: your Microsoft licensing changes will cost more starting July 2026.

How to Buy Microsoft 365 Smart Before the 2026 Price Increase

Don't let the Microsoft 365 price increase catch you off guard. Here are five proven strategies to save money and lock in current pricing:

Step 1: Buy or Renew Before July 1, 2026

The most straightforward way to avoid the price hike is to purchase or renew your Microsoft 365 subscription before the July 1, 2026 deadline. Any licenses purchased before this date will maintain current pricing for the duration of that subscription term.

Pro tip: If your renewal date is after July 1, 2026, consider renewing early to lock in today's rates.

Step 2: Choose Annual Billing Over Monthly

Annual Microsoft subscription renewal plans almost always offer better value than monthly billing—typically saving 10-15% even before the price increase. By committing to annual billing now, you'll:

• Lock in current pricing for a full year
• Avoid the monthly price increase when it hits
• Reduce administrative overhead with fewer billing cycles
• Potentially qualify for volume discounts

Step 3: Audit Your Unused Licenses

Many businesses pay for more Microsoft 365 licenses than they actually use. Before the price increase hits, conduct a thorough audit:

• Review your Microsoft 365 admin center to identify inactive users
• Remove licenses from former employees or unused accounts
• Downgrade users who don't need premium features (E5 → E3, Business Premium → Business Standard)
• Consolidate duplicate accounts

Trimming even 10-15% of unused licenses can offset much of the price increase impact.

Step 4: Compare Authorized Reseller Pricing

Here's a secret many businesses don't know: authorized Microsoft resellers often offer significantly lower prices than buying directly from Microsoft. Resellers can provide:

• Discounts of 15-30% off Microsoft's direct pricing
• Flexible payment terms
• Bundled support and migration services
• Volume licensing expertise

When shopping for Microsoft 365 deals, always compare reseller pricing—especially before the July 2026 deadline.

Step 5: Consider Office 2021 or Office 2024 Perpetual Licenses

If you don't need cloud storage, constant updates, or advanced collaboration features, perpetual licenses for Office 2021 or Office 2024 might be a better long-term investment. Here's why:

• One-time purchase – No recurring subscription fees
• Lifetime activation – Use the software forever on one device
• No price increases – Immune to future Microsoft pricing changes
• Lower total cost of ownership – Often cheaper over 3-5 years compared to subscriptions

Perpetual licenses are ideal for users who primarily need Word, Excel, PowerPoint, and Outlook without cloud dependencies.

Why Buy From Our Store

When it comes to purchasing Microsoft 365 or Office licenses before the 2026 price increase, choosing the right vendor matters. Here's why thousands of customers trust us:

✓ 100% Genuine Microsoft Licenses

Every license we sell is authentic, sourced directly from Microsoft's authorized distribution channels. You'll receive legitimate product keys that activate instantly and remain valid for life (perpetual) or the full subscription term (Microsoft 365).

✓ Instant Digital Delivery

No waiting, no shipping delays. Your license key and download instructions are delivered to your email within minutes of purchase—often instantly. Start using your software right away.

✓ Lower Prices Than Microsoft Direct

We offer competitive pricing that's typically 15-35% lower than buying directly from Microsoft. Lock in these savings before the July 2026 price increase hits.

✓ Secure Checkout and Payment Protection

Our checkout is protected by industry-standard SSL encryption, and we accept all major payment methods. Your transaction is safe, secure, and backed by our satisfaction guarantee.

✓ Bulk Discounts for Businesses

Need multiple licenses? We offer volume pricing for businesses, schools, and organizations. Contact us for a custom quote and save even more on bulk Microsoft 365 or Office purchases.

✓ Expert Support

Our team is here to help you choose the right license, answer activation questions, and ensure a smooth experience from purchase to installation.

Don't overpay at Microsoft when you can get the same genuine licenses for less—and beat the 2026 price increase.

Frequently Asked Questions (FAQ)

When will Microsoft 365 prices increase?

Microsoft 365 and Office 365 prices will increase globally on July 1, 2026. Any subscriptions purchased or renewed before this date will maintain current pricing for the duration of that term.

How much will Microsoft 365 prices increase?

Price increases vary by plan, ranging from 5% to 17%. Enterprise plans like Microsoft 365 E5 will see increases around 15%, while Business plans will increase by 9-13%. Office 365 E1 will see the smallest increase at approximately 5%.

Can I avoid the Microsoft 365 price increase?

Yes! You can avoid or delay the price increase by:

• Purchasing or renewing your subscription before July 1, 2026
• Choosing annual billing to lock in current rates for 12 months
• Switching to perpetual Office licenses (Office 2021 or 2024) that have no recurring fees
• Buying from authorized resellers who offer discounts below Microsoft's direct pricing

Are all Microsoft 365 plans affected by the price increase?

Most commercial, enterprise, government, and frontline plans will be affected. Consumer plans (Microsoft 365 Personal and Family) are not included in this announcement, though Microsoft may adjust those separately. Education plans may see smaller increases or exemptions.

Is buying Microsoft 365 from a reseller safe?

Yes—as long as you buy from an authorized Microsoft reseller. Authorized resellers provide 100% genuine licenses sourced directly from Microsoft's distribution network. Always verify the reseller is legitimate, check reviews, and ensure they offer secure payment and instant delivery. Avoid gray-market sellers offering suspiciously low prices, as those licenses may be invalid or violate Microsoft's terms.

Should I switch to Office 2021 or Office 2024 instead of Microsoft 365?

It depends on your needs. If you require cloud storage (OneDrive), Teams, constant updates, and advanced collaboration features, Microsoft 365 is the better choice. However, if you primarily use Word, Excel, PowerPoint, and Outlook on a single device and don't need cloud features, a perpetual Office license (2021 or 2024) offers better long-term value with no recurring fees or price increases.

Will existing Microsoft 365 subscribers see immediate price increases?

No. If you have an active subscription on July 1, 2026, you'll continue paying your current rate until your next renewal date. The new pricing will apply when your subscription renews after July 1, 2026.

Can I buy multiple years of Microsoft 365 to lock in current pricing?

Microsoft typically allows annual subscriptions but not multi-year prepayment for most commercial plans. However, you can renew early before July 1, 2026 to extend your current pricing for another year. Check with your reseller or Microsoft account manager for volume licensing options that may allow longer terms.

Don't Wait—Lock in Current Pricing Before July 1, 2026

The Microsoft 365 price increase 2026 is coming, and it will impact businesses and users worldwide. With increases ranging from 5% to 17%, the cost of staying productive with Microsoft's cloud suite is about to get significantly more expensive.

But you still have time to act. By purchasing or renewing your Microsoft 365 subscription before the July 1, 2026 deadline, you can lock in current pricing and avoid the hike. Even better, buying from an authorized reseller can save you 15-35% compared to Microsoft's direct pricing—giving you double savings.

Ready to save on Microsoft 365 before prices go up?

Browse our selection of genuine Microsoft 365 and Office licenses, all available at discounted prices with instant digital delivery. Whether you need a single license or bulk volume licensing for your business, we've got you covered.

Shop Microsoft 365 and Office licenses now and beat the 2026 price increase.

Have questions? Contact our team for personalized recommendations and volume pricing quotes.