A general view of the Microsoft office building is seen in Cologne, Germany, on November 18, 2025.
Microsoft said Thursday that it will increase the prices of Office productivity software subscriptions for commercial and government clients on July 1.
The company's Office applications, which include Word, Excel, PowerPoint and Outlook, have been facing increased competition in recent years from Google .
"We are continuously investing and innovating our platform for the future," Nicole Herskowitz, corporate vice president for Microsoft 365 and Copilot, wrote in a blog post. "In the last year, we released more than 1,100 features across Microsoft 365, Security, Copilot, and SharePoint." The new features have added value to the suites, she wrote.
Price hikes for commercial Office subscriptions have been infrequent. In 2022, Microsoft raised prices of its productivity bundles for the first time since launching the original Office 365 subscriptions in 2011. Microsoft changed the name of Office 365 to Microsoft 365 in 2020. In January, Microsoft announced a price hike for consumer Office bundles.
Microsoft offers Office 365 subscriptions for commercial use that include access to its productivity applications, along with higher-priced Microsoft 365 subscriptions that also include Windows operating system updates.
Here's a breakdown of the commercial price changes:
For small and medium-sized businesses, Microsoft 365 Business Basic will cost $7 per person per month, up from $6.
Microsoft 365 Business Standard will be available for $14, up from $12.50.
Microsoft 365 Business Premium will continue to cost $22.
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