Microsoft 365 prices going up for businesses and governments
Heads up if you use Microsoft 365 at work or in government—prices are set to rise worldwide starting July 1, 2026.
Microsoft says the hike comes as they roll out new AI features and beefed-up security, aiming to enhance their offerings in response to market demands.
What's changing?
Business Basic will jump from $6 to $7 per user/month, while Business Standard goes from $12.50 to $14.
Enterprise plans E3 and E5 will see smaller bumps (E3: $36-$39, E5: $57-$60).
Frontline worker plans get steeper hikes too—F1 rises from $2.25 to $3, F3 from $8 to $10.
How about government and nonprofits?
Government plan increases will roll out gradually over several years due to regulations, with each step over 10%.
Nonprofits will also see higher prices but still get a set discount compared to commercial rates.
Microsoft says these changes support over 1,100 new features—including Copilot Chat and upgraded security tools—to help everyone work smarter.