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Announcement

Microsoft 365 Pricing Is Changing July 1, 2026 — What to Know

Xtego Creative

Xtego Creative

Web Design, IT & Hosting in Williamsport, PA2 min read

Effective July 1, 2026

This summer, Microsoft is updating its Microsoft 365 and Office 365 business plans — and it's more than just a price change. Beginning July 1, 2026, these plans gain meaningful new capabilities, along with an increase in subscription cost. Because we pass Microsoft's pricing directly through to our customers, your rate for affected products may change, with the exact amount depending on your specific plan.

You can read the official announcement from Microsoft for full details.

You're getting more, not just paying more

The good news first: Microsoft is expanding what's built into its business plans this summer. Depending on your plan, that includes additional mailbox storage, stronger built-in security (such as advanced link protection and Microsoft Defender for Office), and Copilot Chat enhancements that bring AI assistance directly into the apps you already use every day.

So while the subscription cost is going up, the value packed into each license is going up right alongside it — more room, better protection, and smarter tools.

When this takes effect

You don't need to do anything right now. Although Microsoft introduces the new pricing on July 1, 2026, it won't affect your account until your billing cycle catches up:

  • Annual plans: the new pricing takes effect your next annual term renewal date, which is not necessarily on July 1.
  • Monthly plans (no annual commitment): you'll see the new pricing on your next invoice.

Until then, you stay on your current pricing.

Could you be paying less?

A pricing change is a good moment to make sure your plan still fits. We're happy to review your subscriptions for savings — whether that's moving from monthly billing to an annual term, or right-sizing the number of seats you're paying for. A quick review often uncovers easy wins.

A quick note on monthly and managed plans

Please keep in mind that a premium applies if you are billed monthly or if we actively manage your suite. These reflect the added flexibility and hands-on support we provide, and are separate from Microsoft's base increase.

Questions? We're here to help you understand exactly how these changes affect your account. Get in touch through our contact page or by calling our office at 570-506-8111. We appreciate your continued partnership and look forward to serving you in the year ahead.

Frequently Asked Questions

When will my pricing change?

Your current pricing stays in place until your next renewal (for annual plans) or your next invoice (for monthly plans). There's no action required on your part.

Why is Xtego's price changing?

We provide Microsoft licensing at Microsoft's pricing. When Microsoft adjusts its rates, we pass those changes through to you.

Am I affected?

It depends on the specific Microsoft plan you're on. The article from Microsoft includes a list of all the products changing, along with the price changes for annual paid accounts. Keep in mind that the prices shown on Microsoft's page are for annual paid accounts — if you're on a monthly plan or an Xtego Managed Microsoft 365 plan, the rate you actually pay won't match those figures, because a premium is added to both. If you're unsure, contact us and we'll confirm exactly how (and when) your account is impacted.

Are non-profit licenses affected?

Yes, in some cases non-profit licensing will see a price increase as well. The specific products are highlighted on the Microsoft article.

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