Microsoft 365 just got more expensive, and Microsoft cites "continuous innovation" as one reason, but it's actually the AI tax.
The price hike kicked in on July 1, 2026, across Business, Enterprise, Frontline, and Government suites. Personal and Education plans are not changing for now.
MS 365 Business Basic goes from $6 to $7 per user/month. Business Standard moves from $12.50 to $14. Office 365 E3 goes from $23 to $26. Microsoft 365 E5 rises from $57 to $60.
Microsoft 365 F1 jumps 33%, from $2.25 to $3. F3 goes from $8 to $10. Some no-Teams plans rise even more, with F1 without Teams up 43%.
Microsoft says customers are getting more security, Intune features, mailbox storage, Copilot Chat enhancements, and Security Copilot in some E5 plans.
The company dubs it as continuous innovation, but let’s be honest. This is the AI bill we're paying, much like the increase in RAM prices.