Microsoft 365 price increase from July 1, 2026. How can your company avoid higher costs?
Microsoft has announced pricing changes for selected Microsoft 365 business plans starting from July 1, 2026. For many companies, this may mean higher monthly costs for Microsoft 365 licences, especially for popular business subscriptions such as Microsoft 365 Business Basic and Microsoft 365 Business Standard.
The good news is that companies can review their current licences in advance and secure more favourable pricing before the new rates come into effect. If your business already uses Microsoft 365 or is planning to purchase licences, it is worth making a decision before July 1, 2026.
What is changing in Microsoft 365?
Microsoft is updating the pricing of selected Microsoft 365 plans for business customers. The change applies mainly to commonly used plans for small and medium-sized businesses.
The price increase affects mainly:
- Microsoft 365 Business Basic,
- Microsoft 365 Business Standard.
According to Microsoft’s announcement, Microsoft 365 Business Premium is not included in this base price increase. However, it is still worth checking your current subscription type, renewal date and billing model.
Alongside pricing changes, Microsoft is also introducing additional value in selected plans, including larger mailbox limits. For many businesses, however, the most important practical point is this: from July 1, 2026, buying or renewing Microsoft 365 licences may become more expensive.
Why should you buy or renew Microsoft 365 before July 1, 2026?
If your company uses Microsoft 365 continuously, purchasing or renewing licences before July 1, 2026 may help you avoid the new, higher rates for the duration of your subscription term.
In practice, this means that an annual commitment can help secure the current price for a longer period. This is especially important for companies that know they will continue using Microsoft 365 for the next 12 months and do not expect a significant reduction in the number of users.
It is worth reviewing your Microsoft 365 licences before July 1, 2026 if:
- your company already uses Microsoft 365,
- your current subscription is approaching renewal,
- you are planning to buy new licences,
- you currently use monthly commitment and want to reduce the impact of the price increase,
- your number of users is relatively stable,
- you want to plan Microsoft 365 costs for the next year.
Annual commitment can help secure your price
For many companies, the most cost-effective option may be switching to an annual commitment before the new prices take effect. This allows the company to use the current terms for the full subscription period.
Popular options include:
| Billing option | Best for | Main benefit |
|---|---|---|
| Annual commitment, annual payment | Companies with a stable number of users | Maximum cost predictability |
| Annual commitment, monthly payment | Companies that prefer monthly payments | Price secured for one year without paying the full year upfront |
| Monthly commitment | Companies with frequent user changes | More flexibility, usually at a higher cost |
If you are not sure how many licences you will need for the next 12 months, a mixed model may be the best solution. Core users can be covered by annual commitment, while additional or temporary users can remain on monthly commitment.
Example: annual licences for core users, monthly licences for additional users
A practical approach works well in many companies. For example, if a company has 15 permanent employees and occasionally hires additional people, it can:
- purchase 15 core licences with annual commitment,
- keep additional licences on monthly commitment,
- regularly review active and unused accounts.
This approach helps reduce the impact of the price increase on the licences that are used all year round, while still keeping flexibility where the number of users may change.
Do not wait until the last day
The new Microsoft 365 pricing takes effect on July 1, 2026, so it is better not to leave the decision until the last moment. Before buying or renewing licences, it is worth checking:
- how many licences are currently active,
- how many licences are actually used,
- whether there are unused or unnecessary licences,
- what commitment type is currently active,
- when your current subscription renews,
- whether annual or monthly commitment is the better option.
A licence review can help avoid paying more not only because of the price increase, but also because of unused accounts or incorrectly selected plans.
ITserv can help you secure Microsoft 365 pricing before the increase
ITserv helps companies choose, purchase and renew Microsoft 365 licences. We can review your current Microsoft 365 environment, check the number of active accounts, verify your subscription type and recommend the most suitable billing option.
We can help with:
- purchasing and renewing Microsoft 365 licences,
- switching between monthly and annual commitment,
- choosing Business Basic, Business Standard or Business Premium,
- identifying unused accounts and licences,
- migrating email to Microsoft 365,
- configuring Exchange Online, Teams, OneDrive and SharePoint,
- securing user accounts,
- Microsoft 365 backup,
- ongoing Microsoft 365 administration.
Summary
From July 1, 2026, Microsoft is introducing new prices for selected Microsoft 365 business plans. For companies using Microsoft 365, this is a good time to review licences and make a decision before the price increase takes effect.
If your company will continue using Microsoft 365 for the next 12 months, it is worth considering purchasing or renewing licences with annual commitment before July 1, 2026.
Contact ITserv — we will review your current licences, compare billing options and help you secure the best possible Microsoft 365 pricing before the increase.
