Microsoft raised the price of Microsoft 365 Business Basic and Business Standard on July 1, 2026, while Business Premium held flat. If your company runs on Microsoft 365, the direct cost impact is modest for most seat counts, but the update also bundles in more mailbox storage and new anti-phishing protection that are worth checking before your next renewal.
- Business Basic went from $6 to $7 per user per month, a 16% increase.
- Business Standard went from $12.50 to $14 per user per month, a 12% increase.
- Business Premium price did not change.
- Mailbox storage is doubling from 50GB to 100GB per user across all three Business tiers.
- Existing subscribers keep their current price until their next renewal date, not July 1.
What actually changed on July 1?
Microsoft published the update in its Microsoft 365 blog back in December 2025, giving businesses roughly seven months of notice before the changes landed. The list prices moved on July 1, 2026: Business Basic is now $7 per user per month, up from $6, and Business Standard is now $14, up from $12.50. Business Premium, the plan most Boston small businesses use for its built-in device management and threat protection, did not move from its prior price.
Will my price go up right away?
No, and this is the detail that trips people up. Microsoft’s grandfathering policy means a business that renewed its annual commitment in May 2026 keeps paying the old rate until that term expires in 2027. Only new purchases and renewals processed on or after July 1, 2026 are billed at the new rate. If you pay month to month rather than on an annual commitment, the new price applies at your next billing cycle.
What new security features come with the update?
Along with the price change, Microsoft is adding URL checks to Office 365 E1, Business Basic, and Business Standard to flag known malicious links before a user clicks them, according to the same Microsoft 365 blog post. That closes a gap that used to require a separate add-on for lower tiers. Business Premium subscribers already had access to Microsoft Defender for Business and conditional access policies, so the practical upgrade there is mostly the storage increase rather than new protection.
What is happening with mailbox storage?
Mailbox storage is moving from 50GB to 100GB per user across Business Basic, Standard, and Premium. Microsoft is rolling this out gradually rather than flipping a single switch, so not every mailbox jumped to 100GB on July 1. If your team has been archiving old email or asking staff to delete attachments to stay under quota, check your admin center in the next few weeks. Our post on what changed in Microsoft 365 earlier this year covers a few other quiet admin center changes worth knowing about.
Is this a reason to switch plans?
Not automatically. For a five-person firm on Business Basic, the increase works out to $5 a month total, which is not worth a plan migration on its own. The better use of this renewal cycle is an honest look at what each tier actually protects against. If your business still buys a separate email security add-on to catch phishing links, the built-in URL checking on Basic and Standard might let you drop that cost. If you are on Standard but relying on a third-party mobile device management tool, Premium’s built-in Intune and Defender for Business coverage could replace it at a smaller net increase than it looks like on paper. We have also written about how attackers are targeting Microsoft 365 logins directly, which is useful context when deciding how much built-in protection your plan should carry.
What should you check before your next renewal?
Pull up your Microsoft 365 admin center and confirm your renewal date and current plan. Compare that against the new feature set for your tier rather than assuming nothing changed. If you manage licensing yourself and are not sure whether your organization is grandfathered or already paying the new rate, that is a five-minute check worth doing before the bill arrives.
Frequently asked questions
Did Microsoft 365 Business Premium go up in price?
No. Business Basic and Business Standard both increased on July 1, 2026, but Business Premium stayed at its previous price while gaining the same mailbox storage boost and added security features.
When will my business actually pay the new Microsoft 365 price?
Not until your next renewal date. Microsoft is grandfathering existing subscriptions at the old rate until the current term ends, so a business that just renewed in June 2026 will not see the increase until its 2027 renewal.
Do I need to do anything to get the extra mailbox storage?
No action is required. Microsoft is rolling the increase from 50GB to 100GB per mailbox out automatically across Business Basic, Standard, and Premium tenants, though the rollout is happening in stages rather than all at once.
Should my business switch plans because of this update?
Not automatically. It is worth comparing what your current tier includes against Business Premium’s device management and advanced threat protection, especially if you are still relying on separate antivirus or backup tools to cover gaps.
If you want a second set of eyes on your Microsoft 365 setup before your next renewal, we offer a free 15-minute review of your current plan, licensing, and security settings. Call (617) 322-5155 or contact us online to get on the calendar.
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