Microsoft has detailed the first major price update for its Microsoft 365 commercial suites since March 2022. The new list prices take effect July 1, 2026. An accompanying packaging update begins rolling out in June 2026, covering Enterprise, Business, Frontline, and most Government commercial equivalents — though standalone Microsoft Teams and standalone Copilot SKUs are excluded.

The new pricelist, published in USD, raises Office 365 E3 by 13% (from $23.00 to $26.00) and Microsoft 365 E3 by 8% (from $36.00 to $39.00). Microsoft 365 E5 moves up 5%, from $57.00 to $60.00. Office 365 E5 rises 8% to $41.00, and Office 365 E1 holds at $10.00. The “without Teams” variants follow the same pattern with slightly higher percentage increases — Microsoft 365 E3 (no Teams) goes up 11% to $30.45, and Office 365 E3 (no Teams) goes up 14% to $17.45.

Frontline customers see the largest percentage moves. Microsoft 365 F1 rises 33% to $3.00, and Microsoft 365 F3 rises 25% to $10.00 per user per month. The “no Teams” variants move up 43% and 29% from their lower base prices. Business plans climb more modestly: Microsoft 365 Business Basic from $6.00 to $7.00 (+16%), Business Standard from $12.50 to $14.00 (+12%), and Business Premium holding at $22.00.

Several standalone SKUs that organizations often layer on top of suites are also increasing in number, and the per-device variants are moving the most. Enterprise Mobility + Security (EMS) E3 rises 13% to $12.00, and EMS E5 rises 10% to $18.00. Entra Plan 1 moves up 16% to $7.00; Entra Plan 2 climbs 11% to $10.00. Windows E3 rises 15% to $7.63, while Windows Enterprise per-device pricing rises 31%, also to $7.63. Microsoft 365 Apps moves up 17% to $14.00. The Purview Suite and Defender Suite hold at $12.00.

Alongside the price changes, Microsoft is consolidating capabilities that previously required separate licenses. Rollout starts in June 2026 and completes by August 1, 2026. Each tenant receives a 30-day notice through the Microsoft 365 admin Message Center before the change takes effect.

Microsoft 365 E3 picks up Microsoft Defender for Office 365 Plan 1, Intune Remote Help, Intune Advanced Analytics, Intune Plan 2, and Copilot Chat enhancements. Microsoft 365 E5 receives everything in the E3 update, plus Microsoft Security Copilot, Intune Endpoint Privilege Management, Microsoft Cloud PKI, and Intune Enterprise Application Management. Office 365 E3 gains Microsoft Defender for Office 365 Plan 1; Office 365 E1 gains URL time-of-click protection. The Copilot Chat enhancements bring context-aware intelligence and Agent Mode into Word, Excel, PowerPoint, and Outlook.

Frontline F1 and F3 add Copilot Chat enhancements and Analytics. Business Basic, Standard, and Premium each add 50GB of additional email storage, with Basic and Standard also picking up URL time-of-click protection. EMS E3 absorbs Intune Remote Help, Intune Advanced Analytics, and Intune Plan 2 — and EMS E5 inherits the same through EMS E3. Windows E3 adds Quick Machine Recovery for commercial customers and post-quantum security APIs.

Nonprofit pricing follows commercial pricing through a fixed 60–75% discount, so the same percentage changes apply on a lower base. Government pricing follows commercial too. But federal regulations require that any total increase above 10% be phased over multiple years, which applies to Office 365 G3 (GCC, GCC High, DoD) at +13%, Microsoft 365 F1 at +33%, and Microsoft 365 F3 at +25%. Government packaging follows separately, after FedRAMP and data-residency validation are complete.

Existing customers keep current pricing until their next renewal after July 1, 2026. The renewal date matters. An Enterprise Agreement, NCE annual commitment, or CSP subscription expiring after July 1 means the new list applies immediately at renewal; expiring before locks in the current price for the next term.

The update bundles two changes that historically arrived separately: a list-price reset and an expansion of suite contents. The math shifts at renewal. For customers paying for Microsoft Defender for Office 365 Plan 1, Intune Plan 2, or Microsoft Security Copilot as standalone add-ons today, the threshold at which the bundled suite becomes cheaper than buying the components à la carte falls below the level it has been at since March 2022.