Microsoft is increasing charity pricing for selected Microsoft 365 and Office 365 licences on 1 July 2026. This will apply to both new and existing customers.
Changes to Microsoft 365 and Office Pricing
Below is an overview of Microsoft 365 and Office 365 plans expected to be impacted by the pricing update, along with the estimated percentage changes. Microsoft will release final pricing on July 1.
| LICENcE PLAN | % increase |
|---|---|
| Microsoft 365 Business Standard | 17% |
| Microsoft 365 Business Apps | 17% |
| Microsoft 365 E3 | 8% |
| Microsoft 365 E5 | 5% |
| Microsoft 365 F1 | 33% |
| Microsoft 365 F3 | 25% |
| Office 365 E3 | 13% |
| Office 365 E5 | 8% |
Why Are the Changes Happening?
According to Microsoft, it is increasing prices to reflect added value across its cloud platform. These pricing changes coincide with the rollout of new security, storage, and AI capabilities to improve protection, simplify IT management, and enhance productivity.
Beginning on 1 July 2026, commercial pricing will increase, and charity pricing will also increase accordingly, maintaining a fixed discount of 60 to 75 percent off the commercial rates.
What Does This Mean for Your Organization?
If you use any of these affected products or are considering implementing them, the cost will increase, and we want to make sure that you can budget accordingly. For those of you who already have the affected licences, pricing changes will be implemented at the date of your next subscription term renewal on or after 1 July 2026.
For example, if you just started an annual subscription on 15 June 2026, your price will not be impacted until 16 June 2027, upon your subscription term renewal. However, if it is a monthly subscription, your price will be impacted on 16 July 2026.
A few tips:
- Review the licences you currently have to determine if or when you will be impacted by this change.
- If you have Office 365 E3 licences and have fewer than 300 users, consider switching to Microsoft 365 Business Premium. It's available at a lower price than Office 365 E3 licences, but it still offers the same enterprise-grade security features.
- If you plan to request licences for the affected products for the first time, do so before 1 July and choose an annual subscription. This allows you to lock in the current pricing for your first subscription term.
Make Informed Decisions
Use the information above and the Microsoft FAQ page to understand how these pricing changes will affect your organization and what the best path forward is for you and your team.
You can also join us on Wednesday, 10 June, at 18:00 BST for a webinar in which we will discuss these price increases in detail and answer any questions you may have.
Top photo: Shutterstock
