Microsoft announces Office suite price hikes for 2026

Microsoft has announced that businesses and organizations will have to pay more for the Office productivity suite starting July 1, 2026.

The exact size of the price increase depends on the variant, but according to CNBC it’s an increase of up to 33%.

“Over the past year, we released more than 1,100 features across Microsoft 365, Security, Copilot, and Sharepoint. The new features added value to the packages,” writes Nicole Herskowitz, head of Microsoft 365, in a blog post on the company’s website.

In other words, the increase is justified by new features, including Microsoft’s highly touted AI tool Copilot.

The last time Microsoft raised the prices of its business-oriented Office packages was in 2022. Microsoft significantly increased the price of consumer Microsoft 365 plans in early 2025, citing the addition of AI features as justification, shortly after Google did the same for its G-Suite plans.