Microsoft to Hike Office Prices in 2026, Citing Major AI and Security Overhauls

Microsoft will raise Microsoft 365 and Office 365 prices in July 2026, citing new AI and security upgrades for business and government users.

You might want to start setting aside a little extra budget, because Microsoft is raising the price tag on its popular Office productivity software for businesses and government clients.

The tech giant announced on Thursday that subscription costs for many of its commercial Microsoft 365 and Office 365 packages will increase starting July 1, 2026. This is only the second time the company has raised prices for the business-focused suite since Office 365 launched in 2011. And the move comes as Microsoft aggressively pushes into artificial intelligence.

Microsoft says the new rates reflect years of investment, particularly in AI tools and cyber protection. The company stressed how much work has gone into improving the platform, noting that “In the last year ...