Microsoft 365 price increase 2026: what small businesses can do
Microsoft raised the price of its business plans from 1 July 2026, and most businesses meet the new price at renewal. Here is what changed, when it applies to you, and five ways to pay less — most of them inside Microsoft 365 itself.
Updated 27 October 2026.
What changed
| Plan | Before | From 1 July 2026 |
|---|---|---|
| Microsoft 365 Business Basic | US$6.00 | US$7.00 |
| Microsoft 365 Business Standard | US$12.50 | US$14.00 |
| Microsoft 365 Business Premium | US$22.00 | US$22.00 |
From Microsoft’s Microsoft 365 pricing and packaging updates and its FAQ, checked on 27 October 2026. Microsoft lists the plans without Teams at lower prices too. Prices in rupees, through resellers and with GST may differ: check your own invoice or renewal quote.
When it reaches you
- At your next renewal after 1 July 2026, on annual and on monthly billing, according to Microsoft’s FAQ.
- If you renewed just before 1 July, you keep the old price until the following renewal.
- So now is the time to look at your seats: every licence you drop before renewal saves the new, higher price for the whole term.
Five ways to pay less
- Remove licences nobody uses. Former staff, test accounts and duplicate users are common. Check the Microsoft 365 admin center’s licence and usage reports before you renew.
- Turn shared addresses into shared mailboxes. info@, accounts@ and support@ rarely need a paid user. Microsoft says a shared mailbox can store up to 50 GB without a licence (larger ones, archiving and litigation hold need more).
- Give each person the plan they need. Not everyone needs Business Standard’s desktop Office apps; Business Basic covers email, Teams and the web apps.
- Keep Microsoft 365 only for the people who use it. Staff who only need email can move to an email-only provider on the same domain, with the same addresses, while the rest stay on Microsoft 365. This is split delivery; Microsoft calls the setting an internal relay domain.
- Or move everyone, if nobody relies on Teams or Office. Then the whole domain can move: moving from Microsoft 365.
What split delivery can save
An example: 20 people, of whom 4 use Teams and Office every day and 16 only need email. On Business Standard at Microsoft’s new list price, that is 20 × US$14 a month. With split delivery, 4 stay on Business Standard and 16 move to GINbox, from ₹49 a mailbox a month (billed yearly, GST extra) — so you pay Microsoft for 4 seats instead of 20.
Work out your own numbers in rupees with the calculator on the split delivery page.
Questions people ask
How much did Microsoft 365 Business Basic go up in 2026?
Microsoft’s licensing page lists Business Basic going from US$6.00 to US$7.00 per user per month, and Business Standard from US$12.50 to US$14.00, effective 1 July 2026. Business Premium stays at US$22.00. Prices in rupees and other currencies may differ.
When will my business pay the new price?
At your next renewal after 1 July 2026. Microsoft’s FAQ says existing customers see the new prices at that renewal, on both annual and monthly billing.
Do shared mailboxes like info@ need a Microsoft 365 licence?
Not usually. Microsoft says a shared mailbox can store up to 50 GB without a licence. Larger shared mailboxes, archiving and litigation hold need extra licences.
Can some staff stay on Microsoft 365 and others use a cheaper email service?
Yes, on the same domain. Set the domain to internal relay in Exchange Online and add a connector; the people who need Teams or Office keep Microsoft 365, everyone else uses an email-only provider such as GINbox. This is split delivery.
Try it on your own domain
Set up a real mailbox at your own domain, with every record checked for you. No card needed.