Microsoft said on Thursday that it will raise global prices for its Microsoft 365 productivity suites starting July 2026 for commercial and government customers.
The increases come as the company faces intensifying competition from Google’s workplace tools. Small businesses and frontline workers will see the biggest jumps: Microsoft 365 Business Basic will rise 16.7% to $7 per user per month, while Business Standard will increase 12% to $14. Enterprise plans will see more modest changes, with Microsoft 365 E3 up 8.3% to $39 and E5 up 5.3% to $60.
Frontline worker subscriptions will climb by up to 33%, with F1 moving from $2.25 to $3 and F3 from $8 to $10. Government packages will undergo similar adjustments, rolled out gradually depending on local requirements.
Microsoft said the price changes reflect more than 1,100 new features added to Microsoft 365, including AI-powered productivity upgrades and enhanced security tools. The company is also expanding its AI offerings, such as the $30-per-month Copilot add-on and new bundles for small and mid-sized businesses.
The last commercial price increase for Office products came in 2022, and Microsoft raised consumer subscription prices earlier this year for the first time in over 10 years.
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Microsoft announced on Thursday that it will raise global prices for its Microsoft 365 suites starting July 2026 for both commercial and government customers.
The price adjustments come as Microsoft faces heightened competition from Google’s productivity tools. Small businesses and frontline workers will see the steepest increases: Microsoft 365 Business Basic will jump 16.7% to $7 per user per month, while Business Standard will rise 12% to $14. Enterprise offerings will see more moderate changes, with Microsoft 365 E3 up 8.3% to $39 and E5 up 5.3% to $60.
Frontline worker plans will experience hikes of up to 33%, with F1 rising from $2.25 to $3 and F3 from $8 to $10. Government plans will adjust similarly, with timelines depending on local regulatory requirements.
Microsoft said the increases reflect the addition of more than 1,100 new features across Microsoft 365, including expanded AI-powered tools and integrated security enhancements. The move also aligns with the company’s broader push into AI, such as its $30-per-month Copilot add-on and new bundles for SMBs.
The company last raised commercial Office prices in 2022, and earlier this year increased consumer subscription rates for the first time in more than a decade.
