Microsoft Raises Microsoft 365 Prices for Business, Government Plans

Microsoft announced on Thursday that it will raise prices for its Microsoft 365 productivity suites for commercial and government customers worldwide, effective July 1, 2026. The increases, the first for commercial subscriptions since 2022, target all business tiers and public sector plans, with the sharpest hikes affecting frontline worker and small business users.

The changes vary by plan. For frontline workers, Microsoft 365 F1 will rise 33 percent from $2.25 to $3 per user per month, while F3 will increase 25 percent from $8 to $10. Small business subscriptions face notable adjustments as well: Business Basic will go up 16.7 percent to $7 from $6, and Business Standard will climb 12 percent to $14 from $12.50. Business Premium remains unchanged at $22 per month.

Enterprise plans see more modest increases. Office 365 E1 stays at $10, Office 365 E3 rises 13 percent to $26 from $23, Microsoft 365 E3 increases 8.3 percent to $39 from $36, and the top-tier E5 jumps 5.3 percent to $60 from $57. Government customers will experience similar percentage hikes, implemented in phases based on local regulations and existing contracts.

Microsoft attributes the price adjustments to...