AI Tools
Microsoft 365 Price Hikes & Price History (2026)
Updated June 10, 2026 · Researched & fact-checked by Shaheer
In January 2025 Microsoft raised Microsoft 365 Personal from $69.99 to $99.99/year and Family from $99.99 to $129.99/year, a $30 jump and its first consumer price increase in 12 years, attributed to bundling Copilot AI into the plans. A second round hits business plans on July 1, 2026: Business Basic rises from $6 to $7 and Business Standard from $12.50 to $14 per user/month, with enterprise E3/E5 plans up $3 per seat, again paired with new Copilot features.
At a glance
- Current price
- $14.00 (Business Standard (per user/month))
- Last increase
- July 1, 2026 (+12%)
- Total change tracked
- +12%
- Tracked increases
- 4
Key takeaways
- Microsoft 365 Personal rose from $69.99 to $99.99/year and Family from $99.99 to $129.99/year in January 2025, a flat $30 increase on each plan.
- It was Microsoft’s first consumer price increase since Office 365 launched in 2013.
- The hike paid for bundling Copilot AI and monthly Designer/Clipchamp credits into the consumer plans.
- Existing subscribers could switch to a cheaper "Microsoft 365 Classic" plan without Copilot to keep the old price, but only by opting out, and Microsoft has signalled Classic is temporary.
- A second round hits business plans on July 1, 2026: Business Basic $6→$7 and Business Standard $12.50→$14 per user/month, with Office 365 and Microsoft 365 E3/E5 enterprise plans each up $3 per seat.
- Existing business customers keep their current price until renewal, so renewing an annual term before July 1, 2026 locks the old rate for another year.
Microsoft 365 price increase history
| Date | Plan | Region | Old → New | Change | Source |
|---|---|---|---|---|---|
| July 1, 2026 | Business Standard (per user/month) | US | $12.50 → $14.00 | +12% | Source |
| July 1, 2026 | Business Basic (per user/month) | US | $6.00 → $7.00 | +16.7% | Source |
| January 16, 2025 | Personal (annual) | US | $69.99 → $99.99 | +42.9% | Source |
| January 16, 2025 | Family (annual) | US | $99.99 → $129.99 | +30% | Source |
What Microsoft 365 costs right now
- Personal (annual): $99.99 (US)
- Family (annual): $129.99 (US)
Why Microsoft 365 got more expensive
For over a decade, Microsoft 365 (formerly Office 365) was one of the most stable subscriptions in tech, $69.99 a year for Personal, $99.99 for Family, unchanged since 2013. The January 2025 increase ended that streak and tied the suite’s price directly to AI for the first time.
Microsoft framed the $30 jump as adding value rather than raising the price: Copilot, its GPT-class assistant inside Word, Excel, PowerPoint and Outlook, plus monthly AI credits for Designer and Clipchamp, became standard on both consumer plans. Subscribers who did not want to pay for AI were offered a "Classic" version of their plan at the old price, but only by actively opting out, and Microsoft has indicated Classic is a temporary off-ramp.
For households this is the template for what is coming across the industry: AI features are increasingly the justification for the first price increase a mature subscription has seen in years. The charge lands at your next annual renewal, so the higher amount is easy to miss if you are not tracking the price you actually pay.
The same playbook reached business plans in 2026. Announced December 4, 2025 and effective July 1, 2026, Business Basic rises from $6 to $7 per user/month, Business Standard from $12.50 to $14, and the enterprise SKUs each gain $3 per seat (Office 365 E3 $23→$26, E5 $38→$41, Microsoft 365 E3 $36→$39, E5 $57→$60) — justified, again, by bundling more Copilot and security features. Existing customers keep their price until renewal, which makes renewing an annual term before July 1, 2026 the one clean way to delay the increase a full year.
Frequently asked questions
Did Microsoft 365 raise its price in 2025?
Yes. In January 2025 Microsoft raised Microsoft 365 Personal from $69.99 to $99.99 per year and Family from $99.99 to $129.99 per year, a $30 increase on each plan and its first consumer price rise since 2013.
Why did Microsoft 365 get more expensive?
Microsoft bundled its Copilot AI assistant and monthly Designer/Clipchamp AI credits into the Personal and Family plans and raised the price to cover them. It was the first time the suite’s price was tied to AI features.
How can I avoid the Microsoft 365 price increase?
Existing subscribers were offered a "Microsoft 365 Classic" plan without Copilot at the previous price. You can switch to it from your account billing page, though Microsoft has indicated this option is temporary.
How much does Microsoft 365 cost now?
As of 2026, Microsoft 365 Personal is $99.99/year and Family is $129.99/year in the US. Business plans are $6 (Basic), $12.50 (Standard) and $22 (Premium) per user/month until July 1, 2026, when Basic rises to $7 and Standard to $14.
Is Microsoft 365 raising prices in 2026?
Yes, for business and enterprise plans. Effective July 1, 2026, Business Basic goes from $6 to $7 and Business Standard from $12.50 to $14 per user/month, and the E3/E5 enterprise plans each rise $3 per seat. Existing customers keep their current price until renewal, so renewing an annual term before July 1 locks the old rate for another year.