Microsoft has announced a global Microsoft 365 pricing and packaging update that affects selected commercial suites and standalone components from July 1, 2026. Packaging changes begin rolling out in June 2026, with Microsoft stating that tenants will receive at least 30 days' notice in Message Center before new capabilities become available.
The official Microsoft licensing notice is available here: Microsoft 365 Pricing and Packaging Updates.
Executive summary
The 2026 update has two parts:
- Pricing changes for selected Microsoft 365, Office 365, Business, Frontline, and standalone commercial SKUs.
- Packaging changes that add selected security, management, resiliency, and Copilot Chat capabilities to certain plans.
Key dates
| Date / period | What changes |
|---|---|
| June 2026 | Packaging updates begin rolling out |
| July 1, 2026 | Pricing updates take effect for affected SKUs |
| August 1, 2026 | Microsoft expects rollout of listed packaging features to be complete |
Commercial price changes to watch
Microsoft's published prices are USD pricelist figures and may vary by country and currency. Some of the most relevant commercial changes include:
Enterprise suites with Teams
| SKU | Old price | New price | Change |
|---|---|---|---|
| Office 365 E3 | $23.00 | $26.00 | 13% |
| Office 365 E5 | $38.00 | $41.00 | 8% |
| Microsoft 365 E3 | $36.00 | $39.00 | 8% |
| Microsoft 365 E5 | $57.00 | $60.00 | 5% |
Enterprise suites without Teams
| SKU | Old price | New price | Change |
|---|---|---|---|
| Office 365 E3 (no Teams) | $14.45 | $17.45 | 14% |
| Office 365 E5 (no Teams) | $29.45 | $32.45 | 10% |
| Microsoft 365 E3 (no Teams) | $27.45 | $30.45 | 11% |
| Microsoft 365 E5 (no Teams) | $48.45 | $51.45 | 6% |
Frontline and Business suites
| SKU | Old price | New price | Change |
|---|---|---|---|
| Microsoft 365 F1 | $2.25 | $3.00 | 33% |
| Microsoft 365 F3 | $8.00 | $10.00 | 25% |
| Microsoft 365 Business Basic | $6.00 | $7.00 | 16% |
| Microsoft 365 Business Standard | $12.50 | $14.00 | 12% |
Packaging updates: what is being added?
The packaging update is not just a price change. Microsoft is also adding capabilities to selected plans, with rollout expected during summer 2026.
Examples from Microsoft's announcement include:
- Office 365 E1: URL time-of-click protection, Copilot Chat enhancements, and Copilot Chat Analytics.
- Office 365 E3: Microsoft Defender for Office Plan 1, Copilot Chat enhancements, and Copilot Chat Analytics.
- Microsoft 365 E3: Microsoft Defender for Office Plan 1, Intune Remote Help, Intune Advanced Analytics, Intune Plan 2, Copilot Chat enhancements, and Copilot Chat Analytics.
- Microsoft 365 E5: Microsoft 365 E3 additions plus Microsoft Security Copilot, Intune Endpoint Privilege Management, Microsoft Cloud PKI, and Intune Enterprise Application Management.
- Business Basic and Business Standard: +50GB email, URL time-of-click protection, Copilot Chat enhancements, and Copilot Chat Analytics.
- Business Premium: +50GB email, Copilot Chat enhancements, and Copilot Chat Analytics.
- Windows E3: Quick Machine Recovery for commercial customers and post-quantum security APIs.
- EMS E3: Intune Remote Help, Intune Advanced Analytics, and Intune Plan 2.
Microsoft describes the Copilot Chat enhancements as including inbox and calendar awareness plus access to Word, Excel, and PowerPoint agents.
What customers should do now
Organizations should avoid treating this as a simple percentage increase. The right response is to compare the higher renewal cost against the additional capabilities that may reduce separate add-on spend.
Recommended next steps:
- Map affected SKUs across Enterprise, Business, Frontline, Government commercial equivalents, and standalone components.
- Check renewal dates because existing customers remain on current pricing until renewal.
- Model budget impact using local currency and agreement-specific pricing rather than USD list prices alone.
- Review duplicate tools where newly bundled capabilities may overlap with existing security, Intune, PKI, endpoint privilege, or email-protection products.
- Watch Message Center for the 30-day tenant notice before packaging changes become available.
- Update procurement and licensing roadmaps before July 1, 2026.
Bottom line
The Microsoft 365 2026 packaging and pricing update increases list pricing for several widely used plans, but it also bundles more security, endpoint management, resiliency, and Copilot Chat functionality into selected SKUs. Businesses should use the period before July 2026 to evaluate renewals, optimize license assignments, and identify where newly included features can replace separate tools or add-ons.