Microsoft 365 Pricing Update — Effective 1 July 2026: What CSP Partners Need to Know
Become A ResellerMicrosoft has confirmed a global Microsoft 365 pricing update effective 1 July 2026, applying to Business, Enterprise, Frontline, Standalone and Not-for-Profit SKUs across all purchasing channels — including CSP. The change affects both new and renewing customers at their next renewal after this date. Customers who renew before 1 July 2026 can lock in current pricing for the full subscription term — up to 36 months on Annual Prepaid.
Price changes effective 1 July 2026 — act before renewals roll over
Microsoft is updating Microsoft 365 pricing alongside expanded AI, security and endpoint-management capabilities being added to the core suites in 2026. As your Microsoft CSP partner, we’ve put together everything you need to communicate these changes confidently to your customers before they take effect.
What’s changing
We’ve prepared two easy-to-read pricing tables:
- Suites with Teams — including Business Basic, Standard, Premium, Enterprise, Frontline and Standalone SKUs
- Suites without Teams — for customers who prefer the Teams-free licensing option
Both tables show old vs. new pricing across Annual Prepaid, Annual Monthly Paid, and Month-to-Month billing terms.
Suites with Teams — effective 1 July 2026
Suites without Teams — effective 1 July 2026
Key highlights — SKUs worth flagging for your clients
Microsoft 365 F1 (with Teams) — up 32%; (no Teams) up 42% — the largest movers in this update
Microsoft 365 Apps for Business — up 22%
Microsoft 365 Business Basic — up 17% (with Teams) / 23% (no Teams)
Microsoft 365 Business Premium — no change (still the best-value option in the SMB stack)
Office 365 E1 — no change
Why is Microsoft making this change?
Microsoft is embedding more AI, security and management capability directly into the Microsoft 365 suites in 2026, including:
- Copilot Chat enhancements across Word, Excel, PowerPoint, Outlook and OneNote
- Expanded email security via Microsoft Defender for Office 365 Plan 1
- Additional Intune endpoint management capabilities
- Security Copilot inclusion for Microsoft 365 E5 customers
- 50 GB additional mailbox storage added to Business Basic, Standard and Premium
What to do next
Now is the time to review your customers’ current licensing and lock in annual prepaid where it makes sense before the new pricing kicks in.
- Audit & review — identify all current M365/O365 quantities, Non-Profit qualifiers, Windows Enterprise licences and standalone add-ons
- Select term commitment — choose Annual Prepaid (biggest saving), Annual Monthly (cashflow-friendly) or Month-to-Month (max flexibility)
- Renew early — process new or early-renewal orders before 30 June 2026 to freeze current per-user costs for up to 12, 24 or 36 months
Lock-in tip: Renew before 1 July 2026 on Annual Prepaid and keep today’s pricing for the full subscription term — even after the increase takes effect.
Key dates
| Date | What happens |
|---|---|
| 1 June 2026 | Packaging updates begin rolling out |
| 30 June 2026 | Last day to lock in current pricing |
| 1 July 2026 | New Microsoft 365 prices go live |
| 1 August 2026 | Feature deployment completed |
Talk to us
Got questions or want to work through the numbers together? Reach out to the Leader Cloud team — we’ll review your licence matrix, confirm renewal thresholds, and help you implement the most cost-effective commitment plan.
📧 Sales: sales@leadercloud.com.au
🛠️ Support: help@leadercloud.com.au
📞 Phone: 1300 LDR CSP (1300 537 277)