REDMOND, Wash. — Microsoft’s previously announced pricing changes for selected Microsoft 365 commercial subscriptions took effect on July 1, raising list prices for many enterprise, business and frontline plans as the software maker said the increases reflect years of added capabilities in security, artificial intelligence and IT management.
The global changes apply to new customers immediately and to existing commercial customers when their subscriptions renew after July 1, according to Microsoft. The company said pricing varies by market and currency, with local adjustments outside U.S. dollar markets. Standalone Microsoft Teams and Microsoft Copilot subscription products are not included in the pricing update.
Among enterprise offerings sold with Teams, the monthly list price for Microsoft 365 E3 increased to $39 per user from $36, while Microsoft 365 E5 rose to $60 from $57. Office 365 E3 increased to $26 from $23, and Office 365 E5 rose to $41 from $38. Office 365 E1 pricing remained unchanged. Equivalent increases also took effect for versions sold without Teams.
Microsoft also raised prices for several business and frontline subscriptions. Microsoft 365 Business Basic increased to $7 per user per month from $6, while Business Standard rose to $14 from $12.50. Microsoft 365 F1 increased to $3 from $2.25 and Microsoft 365 F3 to $10 from $8. Business Premium pricing was left unchanged, according to the company.
The company announced the changes in December 2025, saying they reflect continued investment across Microsoft 365, including expanded AI-powered features, security protections, compliance capabilities and endpoint management tools. In a frequently asked questions document, Microsoft said the updated pricing applies globally to new and renewing commercial customers beginning July 1, with nonprofit and government offerings adjusted in line with commercial pricing where applicable.
Microsoft said existing customers will continue paying their current subscription rates until their next renewal. It also said packaging updates for Microsoft 365 suites began rolling out in June and customers would receive at least 30 days’ notice through the Microsoft Message Center before changes became available in their environments.
The pricing overhaul marks Microsoft’s first broad commercial Microsoft 365 price increase since 2022 and follows the company’s addition of more than 1,100 new features across its productivity platform over the past year, according to Microsoft.
