Microsoft is raising the prices of all Microsoft 365 subscriptions from 1 July 2026. Business Basic increases by 16 percent, Business Standard by 12 percent and E3 by 8 percent. New features are being added at the same time. What does this mean for your organisation?
Microsoft has announced that all Microsoft 365 subscriptions will increase in price from 1 July 2026. It is not the first time Microsoft has adjusted its pricing, but this round affects all plans simultaneously and asks organisations to take a critical look at their licensing strategy.
European customers have already been affected earlier. In February 2026, Microsoft applied a currency correction for the eurozone, with price increases of 7 to 13 percent depending on the plan. The upcoming July increase comes on top of that.
The new prices per user per month are as follows. Microsoft 365 Business Basic goes from $6 to $7, an increase of 16 percent. Business Standard goes from $12.50 to $14, an increase of 12 percent. E3 goes from $36 to $39, an increase of 8 percent.
Microsoft is adding new capabilities alongside the price increase. For E3, Remote Help for standard attended sessions becomes included, along with extended mailbox storage and improved analytics. Business customers see an expansion of Defender for Office 365 Plan 1 in Business Premium.
The smartest move is to check your current contract expiry date. If your annual contract expires before 1 July 2026 and you renew before that date, you pay the current price for another year. That can save several dozen euros per user per year depending on the plan and number of licences.
A licence audit is always worthwhile before a major renewal. Many organisations pay for licences that are barely used. By removing unused licences before the renewal date you significantly limit the impact of the price increase.
Want to know what the price increase means for your specific situation and how to optimise your licence costs? Contact Zarioh for a licence review.
