Microsoft has announced that companies and organizations will have to pay more for the Office productivity suite from July 1, 2026.
Exactly how much the price increase will be depends on the variant, but according to CNBC, it is an increase of up to 33 percent.
“Over the past year, we’ve released more than 1,100 features in Microsoft 365, Security, Copilot, and Sharepoint. The new features have added value to the packages,” writes Microsoft 365 manager Nicole Herskowitz in a blog post on the company’s website.
In other words, the increase is justified by the new features, not least Microsoft’s heavily touted AI tool Copilot.
The last time Microsoft raised prices for its business-focused Office packages was in 2022. Microsoft substantially hiked the price of Microsoft 365 consumer plans early in 2025, citing the addition of AI features as justification, shortly after Google did the same for its G-Suite plans.
This article originally appeared on PC för Alla and was translated and localized from Swedish.
Followup on au.pcmag:
In January, Microsoft announced that it was raising the price of the consumer-focused Microsoft 365 Personal plan to $9.99 per month, up from $6.99. The Microsoft 365 Family plan also went up to $12.99 per month from $9.99. That said, customers could revert to the original pricing by switching to classic plans, which cut out the Copilot integration.
Microsoft 365 has received strong reviews from PCMag. But it faces competition from Google’s Workspace and Zoho Office, as well as free alternative LibreOffice. So, impacted users might flee to other platforms when there are signs that Microsoft’s big bet on AI is struggling to pay off.
Still, Microsoft is banking on a whole host of feature updates and security improvements to help it retain subscribers. The company notes that its AI assistant, Copilot Chat, began offering a unified experience across the various office programs starting in September. In addition, Microsoft has been rolling out extra security protections to Microsoft Defender to help it flag more malware and phishing threats.
“Collectively these features have increased the value of our suites across security, productivity, and management,” the company adds. It has also published a graph to highlight all the benefits Microsoft 365 business users will receive under the various monthly plans.
