Post Date: December 22, 2025

Another Microsoft 365 Price Increase Is Coming

Less than a year after raising monthly pricing by 5% on its Microsoft 365 Business licenses, Microsoft announced it will once again increase prices on Microsoft 365 Business licenses.

Microsoft said the higher cost reflects more security and management capabilities powered by AI.

What does that mean for you? Let’s talk about what licenses will see a new price and what new additions you can expect.

Important Dates and Details

Start date: Beginning July 1, 2026, Microsoft is increasing the price for Business Basic and Business Standard. The cost for Business Premium is not increasing.

Microsoft 365 Suite	Current List Price	List Price as of July 1, 2026	Percentage Increase
Business Basic	$6	$7	16.66%
Business Standard	$12.50	$14	12%
Business Premium	$22	$22	0%

Renewal timing: If your renewal date falls before July 1, you won’t see the price increase until your next renewal cycle. For example, a March 2026 renewal means no price increase until March 2027.

This is a monthly price per user, but it’s paid yearly. If you wish to make a monthly payment, the price will increase accordingly. (Note: Microsoft has not released those prices.)

What’s New?

The most significant addition to Business Basic and Standard is Safe Links, which was included in Business Premium.

Safe Links scans links in emails and Office apps to safeguard you against known, malicious websites. It’s a great security feature that significantly reduces the risk of phishing.

Before the price increase, we recommended Business Premium to our clients for its advanced security features and cloud capabilities. For the extra features included, it’s worth the cost.

However, it’s not perfect. Attackers have found ways to bypass Safe Links, so you should always be careful when clicking links in emails.

Microsoft also mentioned Copilot Chat enhancements but didn’t offer details on specific features.

Should You Upgrade to Business Premium?

Before the price increase, we recommended Business Premium to our clients for its advanced security features and cloud capabilities. For the extra features included, it’s worth the cost.

Business Standard’s 12% increase further narrows the price gap, making Business Premium’s $22 price point a much stronger value.

We recommend upgrading to Premium, and it appears Microsoft is gently nudging most of its users to do the same.