Microsoft 365 price rise 2026: what it means when your renewal comes up

Published on Monday, 15 June 2026 at 10:56:25 AM

Microsoft is increasing prices on most Microsoft 365 Business and Enterprise plans from 1 July 2026. You won’t see a change until your next renewal — but it’s worth understanding what’s coming. There’s a lot to take in, but we’ve done the heavy lifting for you. While the changes will happen automatically, it’s still worth reviewing your licensing before renewal to make sure your organisation is on the most suitable plan.

 

What’s actually changing

From 1 July, Microsoft is lifting prices on most commercial plans. For businesses on the SMB tiers, the numbers look like this:

 

  • Business Basic: increasing approximately 17%
  • Business Standard: increasing approximately 12%
  • Business Premium: no change, price stays the same

 

Existing customers stay on current pricing until their first renewal after 1 July. There’s no mid-term change, and Microsoft has committed to at least 30 days’ notice.

 

To see all the pricing and packaging updates go here.

 

You’re not just paying more — you’re getting more too

The increase comes with additions across all Business plans:

 

  • Mailbox storage doubled: all Business plans move from 50GB to 100GB per user
  • SafeLinks Lite: real-time URL scanning at click-time for stronger phishing protection
  • Copilot Chat enhancements: expanded AI assistance built into the suite

 

These features roll out from June, with full availability by August.

 

Learn more in the notification issued by Microsoft here.

 

Why Business Standard renewals are worth a second look

Business Premium is the only plan not going up in price. That changes the maths for anyone sitting on Standard.

 

With Standard up 12% and Premium holding firm, the gap has narrowed. Premium bundles Intune, Defender for Business, Entra ID P1 and Microsoft Purview, tools many businesses already pay third parties for. The real question at renewal: does moving to Premium replace something you’re already spending on elsewhere? Often, yes.

 

A note on mixed licensing environments

If you run Business Premium alongside lower-tier plans (Business Basic, Exchange Online, Standard), this matters. Several Premium features, Entra ID, Purview, Defender, activate at the tenancy level, so unlicensed users can potentially access them, creating a compliance exposure.

 

Before renewal, audit which users are on which plan. The fix is sometimes adding specific add-ons (such as Entra ID P1), sometimes consolidating everyone onto Premium, either way, worth getting ahead of before July.

 

For more information see Microsoft’s FAQs.

 

If you have a dedicated Security as a Service (SecaaS) solution in place, it's worth confirming that the same level of protection applies consistently across all licence types in your environment, not just those on Business Premium. Our team can check for you.

What to do before your renewal

You don’t need to do anything urgently, the changes apply at renewal, not overnight. But the lead-up is a good time to:

 

  • Review how many licences you’re actually using — unused seats add up quickly
  • Compare the real cost of Business Standard vs Premium given the narrowing gap
  • Audit any mixed-licensing setup for compliance risk

 

We’re happy to run through any of this with you. A quick licensing review usually surfaces a few things worth knowing, unused seats, a better-value tier, or a compliance gap to close.

 

Speak to the team at Integrated ICT to arrange a review before your next renewal date. Call 6374 8200 email hello@integratedict.com.au or complete an online form.

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