Does that mean an immediately higher bill? For most organizations, it's not that bad. In this update, find out when you'll actually pay more, what's changing, and what you can do now.

As of July 1, 2026, Microsoft applies new pricing worldwide for a large part of the Microsoft 365 subscriptions. That increase doesn't mean your bill jumps overnight. Existing subscriptions keep their current price until the next renewal after July 1.

Important: your billing type determines when that renewal falls. If you're on an annual subscription, the new rate only applies from your annual renewal date. If that falls in the second half of 2026, you still have some time. If you're on a monthly subscription, it renews every month, so you'll pay the new price almost immediately.

So your renewal and billing moment determines when you actually feel the change. That also gives you room to review your licenses calmly before it happens.

The increase varies significantly per package and runs up to 33 percent. Business Premium is the only one that stays the same.

The amounts below are the recommended end-customer prices, per user per month, for a commercial annual subscription with monthly billing. If you choose a monthly subscription without an annual contract, the price is higher. The exact amount for your situation depends on your program and your agreements. We're happy to review that together with you.

* Recommended end-customer price, per user per month, commercial annual subscription with monthly billing. With a monthly subscription without an annual contract, the rate is higher.

The Copilot add-on stays around an indicative €30 per user per month. There are also commercial promotions running for new Copilot licenses, for example for Business Premium at €17 per user per month. Contact Xylos to check which promotions might apply to your current subscription.

Against the higher price stands a solid expansion of the packages, especially around security and AI, with extra management capabilities. Microsoft talks about more than 1,100 new features in 2026. A few concrete examples:

• 50 GB extra mailbox storage for Business Basic, Business Standard and Business Premium (100 GB combined)

• URL checks in Outlook for Business Basic and Business Standard, which check links at the moment you click them

• Copilot Chat in Word, Excel, PowerPoint, Outlook and Teams, helping with drafting, summarizing and analyzing

• Microsoft Defender for Office 365 Plan 1 included by default in E3

• Security Copilot for Microsoft 365 E5 users

For many organizations, that means more capabilities within the same license. The flip side: if you don't adjust anything, you'll pay more without deliberately putting those new features to use.

A price change is the perfect moment to check whether your licensing model still fits how you work today. You might be paying for packages your team barely uses, or a few users might actually benefit from a more extensive subscription. The biggest impact falls on organizations that renew around summer, use a lot of Business or Frontline licenses, or have little visibility into their actual usage.

You don't have to figure that out yourself. As a Microsoft partner, we at Xylos lay your renewal dates, your usage and the new rates side by side. That way you can weigh the price against the functionality you actually need and keep a grip on your costs heading into your next renewal.

Want to know what the new rates mean for your subscription? Get in touch for a no-obligation license check, or discover our Managed Services.