--- source_url: "https://www.microsoft.com/en-us/licensing/news/2026-m365-packaging-pricing-updates" title: "Microsoft 365 Pricing and Packaging Updates | Microsoft Licensing Resources" mirrored_at: 2026-08-21T03:02:12.759Z host: www.microsoft.com cited_in_42a: true mirror_canonical: "https://index.42a.ai/www.microsoft.com/en-us/licensing/news/2026-m365-packaging-pricing-updates" --- > **Original source:** https://www.microsoft.com/en-us/licensing/news/2026-m365-packaging-pricing-updates ![Architectural shapes, textures and patterns in a light rail platform canopy.](https://cdn-dynmedia-1.microsoft.com/is/image/microsoftcorp/CLO22_HumanBuiltAbstracts_027:VP2-859x540) Learn about changes to Microsoft 365 suites and standalones effective July 1, 2026. **February 16, 2026** On December 4, Microsoft announced a global price and packaging update for select Microsoft 365 commercial suites and standalone components, including Enterprise, Business, Frontline, and Government commercial equivalents. Standalone Microsoft Teams and Copilot SKUs are not included in this update. See timing details below. - Pricing updates take effect July 1, 2026. - Packaging updates begin rolling out in June 2026. - Existing customers remain on current pricing until renewal. - Customers will receive at least 30 days notice in Message Center before packaging changes become available in their tenant. Answers to common questions about Microsoft 365 commercial pricing and packaging updates can be found [here](https://www.microsoft.com/en-us/licensing/news/2026-M365-Packaging-Pricing-Updates-FAQ). **Commercial Pricing Update**: Details of the new pricing (as of July 1, 2026, in USD) for commercial customers are provided in the tables below. Please note: This pricelist pricing is subject to change and may vary by country and currency. To learn more about these changes, please refer to the [official announcement](https://www.microsoft.com/en-us/microsoft-365/blog/2025/12/04/advancing-microsoft-365-new-capabilities-and-pricing-update/?msockid=16f60e81c78e618e20141b56c6396012). ## Enterprise suites ### Suites with Teams Effective July 1, 2026 SKU % change Old Price New Price Office 365 E1 \-- $10.00 Office 365 E3​ 13% $23.00 $26.00 Office 365 E5​ 8% $38.00 $41.00 Microsoft 365 E3​ 8% $36.00 $39.00 Microsoft 365 E5​ 5% $57.00 $60.00 ### Suites without Teams Effective July 1, 2026 SKU % change Old Price New Price Office 365 E1 (no Teams) \-- $6.79 Office 365 E3 (no Teams) 21% $14.45 $17.45 Office 365 E5 (no Teams) 10% $29.45 $32.45 Microsoft 365 E3 (no Teams) 11% $27.45 $30.45 Microsoft 365 E5 (no Teams) 6% $48.45 $51.45 ## Frontline suites ### Suites with Teams Effective July 1, 2026 SKU % change Old Price New Price Microsoft 365 F1 33% $2.25 $3.00 Microsoft 365 F3 25% $8.00 $10.00 ### Suites without Teams Effective July 1, 2026 SKU % change Old Price New Price Microsoft 365 F1 (no Teams) 43% $1.75 $2.50 Microsoft 365 F3 (no Teams) 29% $6.93 $8.93 ## Business suites ### Suites with Teams Effective July 1, 2026 SKU % change Old Price New Price Microsoft 365 Business Basic 16% $6.00 $7.00 Microsoft 365 Business Standard​ 12% $12.50 $14.00 Microsoft 365 Business Premium​ \-- $22.00 ### Suites without Teams Effective July 1, 2026 SKU % change Old Price New Price Microsoft 365 Business Basic (no Teams) 23% $4.40 $5.40 Microsoft 365 Business Standard (no Teams) 16% $9.29 $10.79 Microsoft 365 Business Premium (no Teams) \-- $18.79 ## Standalone Components ### Effective July 1, 2026 SKU % change Old Price New Price Purview Suite \-- $12.00 Windows E3 15% $6.63 $7.63 Apps for Business 21% $8.25 $10.00 Enterprise Mobility + Security (EMS) E3 13% $10.60 $12.00 Entra Plan 1 16% $6.00 $7.00 Windows Enterprise (per device) 31% $5.85 $7.63 SKU % change Old Price New Price Defender Suite \-- $12.00 Windows E5 9% $11.81 $12.81 Microsoft 365 Apps 17% $12.00 $14.00 Enterprise Mobility + Security (EMS) E5 10% $16.40 $18.00 Entra Plan 2 11% $9.00 $10.00 Microsoft 365 Apps (per device) 17% $36.00 $42.00 **Commercial Packaging Update**: New capabilities will begin to roll out in June 2026. Customers will receive a 30‑day notice in Message Center before the update becomes available in their tenant. Roll out of the following features will be complete by August 1, 2026: Microsoft Defender for Office 365 Plan 1, Intune Remote Help, Intune Advanced Analytics, Intune Plan 2, Intune Privilege Management, Microsoft Cloud PKI, and Intune Application Management. Packaging details are provided in the table below. ## Enterprise suites Rolling out summer 2026 Feature additions Office 365 E1 URL time-of-click protection, Copilot Chat enhancements\*, Copilot Chat Analytics Office 365 E3​ Microsoft Defender for Office Plan 1, Copilot Chat enhancements\*, Copilot Chat Analytics Office 365 E5​ Copilot Chat enhancements\*, Copilot Chat Analytics Microsoft 365 E3​ Microsoft Defender for Office Plan 1, Intune Remote Help, Intune Advanced Analytics, Intune Plan 2, Copilot Chat enhancements\*, Copilot Chat Analytics Microsoft 365 E5​ _In addition to Microsoft 365 E3 additions:_ Microsoft Security Copilot, Intune Endpoint Privilege Management, Microsoft Cloud PKI, Intune Enterprise Application Management ## Frontline suites Rolling out summer 2026 Feature additions Microsoft 365 F1 Copilot Chat enhancements\*, Copilot Chat Analytics Microsoft 365 F3 Copilot Chat enhancements\*, Copilot Chat Analytics ## Business suites Rolling out summer 2026 Feature additions Microsoft 365 Business Basic +50GB email, URL time-of-click protection, Copilot Chat enhancements\*, Copilot Chat Analytics Microsoft 365 Business Standard​ +50GB email, URL time-of-click protection, Copilot Chat enhancements\*, Copilot Chat Analytics Microsoft 365 Business Premium​ +50GB email, Copilot Chat enhancements\*, Copilot Chat Analytics ## Standalone Components Rolling out summer 2026 Feature additions Rolling out summer 2026 Feature additions Purview Suite \-- Defender Suite \-- Windows E3 Quick Machine Recovery (QMR) for commercial, post-quantum security APIs Windows E5 \-- Apps for Business \-- Microsoft 365 Apps \-- Enterprise Mobility + Security (EMS) E3 Intune Remote Help, Intune Advanced Analytics, Intune Plan 2 Enterprise Mobility + Security (EMS) E5 _Via Enterprise Mobility + Security (EMS) E3:_ Intune Remote Help, Intune Advanced Analytics, Intune Plan 2 Entra Plan 1 \-- Entra Plan 2 \-- Windows Enterprise (per device) Basic resiliency features, Software Assurance Microsoft 365 Apps (per device) \-- _\*Enhancements include inbox and calendar awareness and access to Word, Excel, and PowerPoint agents._ **Nonprofit Pricing Update**: Nonprofit pricing will be adjusted in line with commercial pricing, as it is tied to commercial rates through a fixed percentage discount. For the impacted products, the nonprofit discount rate is 60-75%. Details of the new pricing (as of July 1, 2026, in USD) for non-profit customers are provided in the tables below. Please note: This pricelist pricing is subject to change and may vary by country and currency. ## Enterprise suites ### Suites with Teams Effective July 1, 2026 SKU % change Old Price New Price Office 365 E1 \-- $2.50 Office 365 E3​ 13% $5.75 $6.50 Office 365 E5​ 8% $15.20 $16.40 Microsoft 365 E3​ 8% $9.00 $9.75 Microsoft 365 E5​ 5% $22.80 $24.00 ## Frontline suites ### Suites with Teams Effective July 1, 2026 SKU % change Old Price New Price Microsoft 365 F1 33% $0.56 $0.75 Microsoft 365 F3 25% $2.00 $2.50 ## Business suites ### Suites with Teams Effective July 1, 2026 SKU % change Old Price New Price Microsoft 365 Business Basic N/A Free Microsoft 365 Business Standard​ 17% $3.00 $3.50 Microsoft 365 Business Premium​ \-- $5.50 ## Standalone Components ### Effective July 1, 2026 SKU % change Old Price New Price Purview Suite \-- $4.80 Windows E3 15% $1.65 $1.90 Enterprise Mobility + Security (EMS) E3 13% $2.65 $3.00 Entra Plan 1 16% $1.50 $1.75 Microsoft 365 Apps 17% $3.00 $3.50 Microsoft 365 Apps (per device) 17% $9.00 $10.50 SKU % change Old Price New Price Defender Suite \-- $4.80 Windows E5 9% $4.40 $5.12 Enterprise Mobility + Security (EMS) E5 10% $6.56 $7.20 Entra Plan 2 11% $3.60 $4.00 Windows Enterprise (per device) 31% $1.46 $1.91 **Government Pricing Update**: Government pricing will be adjusted in line with commercial pricing. Details of the new pricing (as of July 1, 2026, in USD) for Government customers are provided in the tables below. Commercial SKU Government SKU Total % Increase Microsoft 365 E3 Microsoft 365 G3 GCC 8% Microsoft 365 E3 Microsoft 365 G3 GCC High 8% Microsoft 365 E3 Microsoft 365 G3 DoD 8% Commercial SKU Government SKU Total % Increase Microsoft 365 E5 Microsoft 365 G5 GCC 5% Microsoft 365 E5 Microsoft 365 G5 GCC High 5% Microsoft 365 E5 Microsoft 365 G5 DoD 5% Commercial SKU Government SKU Total % Increase Office 365 E1 Office 365 G1 GCC \-- Office 365 E1 Office 365 E1 GCC High \-- Office 365 E1 Office 365 E1 DoD \-- Commercial SKU Government SKU Total % Increase Office 365 E3 Office 365 G3 GCC 13%\* Office 365 E3 Office 365 E3 GCC High 13%\* Office 365 E3 Office 365 E3 DoD 13%\* Commercial SKU Government SKU Total % Increase Office 365 E5 Office 365 G5 GCC 8%\* Office 365 E5 Office 365 G5 GCC High 8%\* Office 365 E5 Office 365 G5 DoD 8%\* Commercial SKU Government SKU Total % Increase Microsoft 365 Business Premium Business Premium GCC High \-- Commercial SKU Government SKU Total % Increase Microsoft 365 Frontline Microsoft 365 F1 33%\* Microsoft 365 Frontline Microsoft 365 F3 25%\* _\*In accordance with federal regulations, for suites with total increases exceeding 10%, the increase will be phased over multiple years._ **Government Packaging Update**: While commercial customers will see expanded access to capabilities like advanced security tools, productivity enhancements, and IT management features in June, Government customers will continue to receive updates aligned with their compliance frameworks and roadmap. This helps ensure that features meet strict standards for data residency, FedRAMP, and other government-specific mandates. Microsoft remains committed to delivering innovation across all clouds, and many of the same enhancements will be introduced to Government offerings over time, following the necessary validation steps. See below chart for the features that will be made available in June. Commercial SKU Government SKU Feature additions expected to be available 2026 Microsoft 365 E3 Microsoft 365 G3 GCC Intune Remote Help, Intune Advanced Analytics, Microsoft Defender for Office Plan 1, Intune Plan 2, Copilot Chat enhancements\* Microsoft 365 E3 Microsoft 365 G3 GCC High Intune Advanced Analytics, Microsoft Defender for Office Plan 1, Intune Plan 2, Copilot Chat enhancements\* Microsoft 365 E3 Microsoft 365 G3 DoD Intune Advanced Analytics, Microsoft Defender for Office Plan 1, Intune Plan 2, Copilot Chat enhancements\* Commercial SKU Government SKU Feature additions expected to be available 2026 Microsoft 365 E5 Microsoft 365 G5 GCC _In addition to Microsoft 365 G3 GCC additions:_ Intune Endpoint Privilege Management, Intune Enterprise Application Management, Microsoft Cloud PKI, Copilot Chat enhancements\* Microsoft 365 E5 Microsoft 365 G5 GCC High _In addition to Microsoft 365 G3 GCC High additions:_ Intune Endpoint Privilege Management, Copilot Chat enhancements\* Microsoft 365 E5 Microsoft 365 G5 DoD _In addition to Microsoft 365 G3 DoD additions:_ Intune Endpoint Privilege Management, Copilot Chat enhancements\* Commercial SKU Government SKU Feature additions expected to be available 2026 Office 365 E1 Office 365 G1 GCC URL time‑of‑click protection, Copilot Chat enhancements\* Office 365 E1 Office 365 E1 GCC High URL time‑of‑click protection, Copilot Chat enhancements\* Office 365 E1 Microsoft 365 E1 DoD URL time‑of‑click protection, Copilot Chat enhancements\* Commercial SKU Government SKU Feature additions expected to be available 2026 Office 365 E3 Office 365 G3 GCC Microsoft Defender for Office Plan 1, Copilot Chat enhancements\* Office 365 E3 Office 365 E3 GCC High Microsoft Defender for Office Plan 1, Copilot Chat enhancements\* Office 365 E3 Microsoft 365 E3 DoD Microsoft Defender for Office Plan 1, Copilot Chat enhancements\* Commercial SKU Government SKU Feature additions expected to be available 2026 Office 365 E5 Office 365 G5 GCC Copilot Chat enhancements\* Office 365 E5 Office 365 G5 GCC High Copilot Chat enhancements\* Office 365 E5 Microsoft 365 G5 DoD Copilot Chat enhancements\* Commercial SKU Government SKU Feature additions expected to be available 2026 Microsoft 365 Business Premium Business Premium GCC High +50GB email, Copilot Chat enhancements\* Commercial SKU Government SKU Feature additions expected to be available 2026 Microsoft 365 Frontline Microsoft 365 F1 Copilot Chat enhancements\* Microsoft 365 Frontline Microsoft 365 F3 Copilot Chat enhancements\*