Microsoft 365 prices changed on July 1, 2026, and not every plan moved the same way. Business Basic went up, Business Standard was replaced by a pricier Copilot-included version, and Business Premium held its price while gaining the same AI bundling. If your invoice has not reflected any of this yet, it likely will at your next renewal.
- Business Basic rose from $6 to $7 per user per month.
- Classic Business Standard was replaced by Business Standard with Copilot, now generally available as the default SKU.
- Business Premium’s list price stayed at $22 before its own Copilot-included version rolled out on the same date.
- Basic URL checks in Outlook and Office apps were added to Office 365 E1, Business Basic, and Business Standard.
- Existing customers keep their current rate until their next renewal after July 1, 2026.
What actually changed on July 1, 2026?
Microsoft announced the update in a December 2025 blog post, stating that new list prices for its commercial plans would take effect on July 1, 2026, alongside new security features. That post confirmed Microsoft was adding URL checks in Office 365 E1, Business Basic, and Business Standard, a scan that flags known malicious sites when someone clicks a link in email or an Office app. It is not the full Safe Links time-of-click rewriting that Business Premium customers already have, but it closes some of the gap for businesses running the cheaper tiers.
On the same date, Microsoft made Business Standard with Copilot and Business Premium with Copilot generally available. These plans build AI directly into Word, Excel, PowerPoint, Outlook, and Teams instead of requiring a separate Copilot add-on license, and they add access to multiple AI models rather than a single one. Microsoft’s current published pricing shows Business Basic at $7 per user per month, with the Copilot-included Standard and Premium tiers priced well above their pre-2026 rates.
Why did Business Premium’s base price hold while Basic and Standard moved?
Premium was already the plan built for businesses that need identity protection, device management, and advanced threat defense, so Microsoft positioned it as the plan least in need of a straight price hike. Instead, Premium picked up the AI bundling change at the same time other plans got their price adjustment. For a business already paying for Premium, the practical effect is that a feature bundle changed under a familiar price point, while Basic and Standard customers are the ones who need to check their next invoice closely.
Does this change what Southwest Florida businesses should buy?
Not automatically, but it is worth a look before your next renewal. A lot of small offices in Naples, Fort Myers, and Tampa are still on Business Basic or classic Business Standard because that is what a vendor set up years ago and nobody has revisited it since. If your team is opening attachments and clicking links from an inbox that only has the lighter URL check, and you are already budgeting for a Copilot-included renewal price anyway, it is a reasonable moment to compare what Premium actually includes against what you would pay for Standard with Copilot. We covered the mechanics of Safe Links protection in Business Premium in an earlier post if you want the technical detail on how that scanning differs from the basic URL check.
How should we handle this at renewal?
Treat it like any other vendor contract change. Pull your current Microsoft invoice, compare the per-user rate against what is listed on Microsoft’s own pricing page, and ask your IT provider or reseller to walk through what changed in your specific bundle before you sign off on a renewal. This is also a good trigger to run through a broader vendor renewal checklist rather than rubber-stamping whatever number shows up, since licensing changes like this tend to arrive quietly and get missed until someone notices the bill went up.
Frequently asked questions
Did every Microsoft 365 business plan get more expensive in 2026?
No. Business Basic rose from $6 to $7 per user per month and Business Standard moved to a Copilot-included SKU priced well above its old rate, but Business Premium held flat at $22 per user per month before Microsoft rolled out the new Premium with Copilot tier on the same date.
What is Microsoft 365 Business Standard with Copilot?
It is the plan that replaced classic Business Standard as of July 1, 2026. Copilot is built into Word, Excel, PowerPoint, Outlook, and Teams by default instead of being sold as a separate $30-per-user add-on.
Do Business Basic and Business Standard now include link protection?
Microsoft added URL checks in Outlook and Office apps to Office 365 E1, Business Basic, and Business Standard as part of the same update. It is a lighter-weight scan than the full Safe Links time-of-click protection that ships with Business Premium.
When should we review our Microsoft 365 licensing?
At your next renewal date, not before, unless your invoice already jumped. Microsoft has said accounts keep their current rate until the next renewal cycle following July 1, 2026.
If you want a second set of eyes on what your Microsoft 365 renewal actually includes before you sign it, SWFIT offers a free 15-minute IT and security review. Get in touch and we’ll walk through your current licensing and what it covers.
