---
title: Microsoft 365 Pricing and Packaging Updates for July 2026
description: Review Microsoft 365 pricing and packaging changes from July 2026, including renewals, Business and Enterprise plans, add-ons and licensing choices.
image: https://digigen.io/hubfs/AI-Generated%20Media/Images/photographic%20Microsoft%20logo%20in%20front%20of%20the%20Thailand%20Skyline.png
---

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M365

# Microsoft 365 Pricing and Packaging Updates for July 2026

Review Microsoft 365 pricing and packaging changes from July 2026, including renewals, Business and Enterprise plans, add-ons and licensing choices.

Oliver Machwirth · 27 March 2026 · 4 min read

![Microsoft Price increase for Thailand and Singapore July 2026](https://digigen.io/hubfs/AI-Generated%20Media/Images/photographic%20Microsoft%20logo%20in%20front%20of%20the%20Thailand%20Skyline.png)

IN THIS ARTICLE

Microsoft 365 Licensing Update

## Microsoft 365 Pricing and Packaging Updates for July 2026

Microsoft is making broad pricing and packaging changes across Microsoft 365 Business, Enterprise, Frontline, Government equivalents, and selected standalone products. Existing customers stay on current pricing until renewal, while feature additions begin rolling out from June 2026.

Pricing change date

July 1, 2026

New commercial pricing becomes effective for new purchases and renewing subscriptions.

Packaging rollout

June 2026

Feature additions start rolling out before pricing changes fully take effect.

Existing customers

Renewal-based

Customers remain on current pricing until their next renewal after July 1, 2026.

Notice period

30 days

Microsoft says customers will receive at least 30 days' notice in Message Center before packaging changes hit their tenant.

What this means

### This is not just a price increase. It is a licensing strategy shift.

Microsoft is increasing prices across many suites, while also expanding bundled capabilities in security, management, device control, Copilot Chat, and core productivity. For some companies, this will improve value. For others, it creates a good moment to re-evaluate whether the current Microsoft 365 setup is still the right fit for cost, security, and AI readiness.

Budget impact

Renewing customers may see materially higher annual spend, especially across Business Basic, Frontline, Apps, and Entra add-ons.

Packaging impact

Some plans now include more security and management features, which may reduce the need for separate add-ons.

Timing impact

Renewal timing matters more now. Companies should check whether to lock in current structure before the updated pricing applies.

### Commercial pricing changes at a glance

USD list pricing shown below. Country pricing and local currency may differ.

Enterprise suites

With Teams

**Office 365 E1**: unchanged at $10.00

**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%)

 

Without Teams

**Office 365 E1 (no Teams)**: unchanged at $6.79

**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%)

Business suites

With Teams

**Business Basic**: $6.00 → $7.00 (+16%)

**Business Standard**: $12.50 → $14.00 (+12%)

**Business Premium**: unchanged at $22.00

 

Without Teams

**Business Basic (no Teams)**: $4.40 → $5.40 (+23%)

**Business Standard (no Teams)**: $9.29 → $10.79 (+16%)

**Business Premium (no Teams)**: unchanged at $18.79

Frontline suites

With Teams

**Microsoft 365 F1**: $2.25 → $3.00 (+33%)

**Microsoft 365 F3**: $8.00 → $10.00 (+25%)

 

Without Teams

**Microsoft 365 F1 (no Teams)**: $1.75 → $2.50 (+43%)

**Microsoft 365 F3 (no Teams)**: $6.93 → $8.93 (+29%)

Standalone components

**Windows E3**: $6.63 → $7.63 (+15%)

**Apps for Business**: $8.25 → $10.00 (+21%)

**EMS E3**: $10.60 → $12.00 (+13%)

**Entra Plan 1**: $6.00 → $7.00 (+16%)

**Windows Enterprise (per device)**: $5.85 → $7.63 (+31%)

**Windows E5**: $11.81 → $12.81 (+9%)

**Microsoft 365 Apps**: $12.00 → $14.00 (+17%)

**EMS E5**: $16.40 → $18.00 (+10%)

**Entra Plan 2**: $9.00 → $10.00 (+11%)

**Microsoft 365 Apps (per device)**: $36.00 → $42.00 (+17%)

**Purview Suite**: unchanged at $12.00

**Defender Suite**: unchanged at $12.00

### What is being added in summer 2026

**Business Basic / 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.

**Office 365 E1**  
URL time-of-click protection, Copilot Chat enhancements, and Copilot Chat Analytics.

**Office 365 E3 / Microsoft 365 E3**  
Microsoft Defender for Office 365 Plan 1, plus Copilot Chat enhancements and analytics. Microsoft 365 E3 also gains Intune Remote Help, Intune Advanced Analytics, and Intune Plan 2.

**Microsoft 365 E5**  
Includes Microsoft 365 E3 additions plus Microsoft Security Copilot, Intune Endpoint Privilege Management, Microsoft Cloud PKI, and Intune Enterprise Application Management.

### Important rollout details

Feature additions begin rolling out in **June 2026**.

Microsoft says tenants will receive **at least 30 days' notice** through Message Center before packaging changes become available.

Rollout of the following is expected to be complete by **August 1, 2026**:

- Microsoft Defender for Office 365 Plan 1
- Intune Remote Help
- Intune Advanced Analytics
- Intune Plan 2
- Intune Privilege Management
- Microsoft Cloud PKI
- Intune Application Management

Copilot note

### Microsoft is also expanding Copilot Chat capabilities

The packaging update includes Copilot Chat enhancements and Copilot Chat Analytics across multiple Microsoft 365 suites. Microsoft notes that these enhancements include **context-aware intelligence** and **Agent Mode** in Word, Excel, PowerPoint, and Outlook.

Nonprofit pricing

### Nonprofit pricing also changes

Nonprofit pricing remains tied to commercial rates through a fixed percentage discount, with affected products generally discounted by around 60% to 75%.

**Microsoft 365 E3**: $9.00 → $9.75

**Microsoft 365 E5**: $22.80 → $24.00

**Business Standard**: $3.00 → $3.50

**F1**: $0.56 → $0.75

**F3**: $2.00 → $2.50

**Business Basic**: remains free

Government update

### Government pricing follows commercial logic

Government pricing will also be adjusted in line with commercial pricing, but packaging updates will follow government compliance frameworks, validation paths, and roadmap timing.

**Microsoft 365 G3**: aligned to Microsoft 365 E3 at **+8%**

**Microsoft 365 G5**: aligned to Microsoft 365 E5 at **+5%**

**Office 365 G3 / GCC High / DoD**: **+13%**, with phased increases where required by regulation

**F1 / F3 Government equivalents**: aligned to frontline increases

Digigen perspective

### The right question is no longer just “How much does Microsoft 365 cost?”

It is now: **Which plan should we be on, what bundled features will we actually use, which add-ons become redundant, and when should we renew?**

For many businesses, July 2026 is the right time to review Microsoft 365 Business, Microsoft 365 E3/E5, security add-ons, device management strategy, and overall total cost before the next renewal cycle.

[Review Your Microsoft Plan](https://digigen.io/microsoft-365-singapore?hsLang=en-us)

![Oliver Machwirth](https://digigen.io/hubfs/HS-324.jpg)

ABOUT THE AUTHOR

### Oliver Machwirth

Investor and strategic advisor to Digigen

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