Microsoft Teams Pricing (2026)

Pure per-seat, billed annually — you're paying for a licensed user slot, not usage or outcomes. The interesting wrinkle is the 'Without Teams' pricing variants, which reveals Teams itself carries a $1.60–$1.70/user/month price tag baked into the bundle.

From $4/mo 3 plans per-seat Free trial
Microsoft Teams Essentials Popular
$4/mo per seat
Microsoft 365 Business Basic
$7/mo per seat
Microsoft 365 Business Standard with Copilot
$23/mo per seat
Verified Jul 25, 2026 Official pricing page
Screenshot of Microsoft Teams's pricing page showing its plans and prices
Their pricing page, captured Jul 25, 2026

Keep up with your competitors, without the manual work.

Outmano tracks pricing, features, roadmaps and reviews across your market, then sends one weekly brief: what changed, and what it means for you.

Try Outmano free »

Microsoft Teams Essentials

Popular
$4/mo per seat
  • Chat, call, and video conferencing
  • Real-time collaboration with file sharing, tasks, and polling
  • Team meeting recordings with transcripts and live captions (English)
  • 10 GB of cloud storage per user
  • Data encryption for meetings, chats, calls, and files
  • Anytime phone and web support

Microsoft 365 Business Basic

$7/mo per seat
  • Core identity and access management for up to 300 users
  • Web and mobile versions of Word, Excel, PowerPoint, and Outlook​
  • Custom business email ([email protected])
  • Chat, call, and meet with Microsoft Teams​
  • 1 TB of cloud storage per user​
  • 10+ additional apps for your business needs (including Microsoft Bookings, Planner, and Forms)​
  • AI chat experience with web grounding, writing assistance, data analysis, and access to agents
  • Automatic spam and malware filtering​
  • Anytime phone and web support​

Microsoft 365 Business Standard with Copilot

$23/mo per seat
  • Work-grounded Copilot in apps such as Word, Excel, PowerPoint, Outlook, and Microsoft Teams
  • Reasoning AI for research and data analysis
  • Core identity and access management for up to 300 users
  • Desktop, web, and mobile versions of Word, Excel, PowerPoint, and Outlook
  • Custom business email ([email protected])​
  • Chat, call, meet, and host webinars with Microsoft Teams
  • 1 TB of cloud storage per user
  • 10+ additional apps for your business needs (including Microsoft Loop, Clipchamp, Bookings, Planner, and Forms)​
  • Secure AI built for work, powered by Work IQ, with access to create and use agents
  • Automatic spam and malware filtering
  • Anytime phone and web support

AI Pricing Analysis

Pricing Model

Pure per-seat, billed annually — you're paying for a licensed user slot, not usage or outcomes. The interesting wrinkle is the 'Without Teams' pricing variants, which reveals Teams itself carries a $1.60–$1.70/user/month price tag baked into the bundle.

Tier Strategy

Essentials ($4) is a bare-bones hook for teams that just need meetings and chat — no Office apps, no email. The jump to Business Basic ($7) is triggered the moment a team needs SharePoint, Exchange, or OneDrive. Business Standard ($23.50) is where Copilot AI features and desktop Office apps live, targeting orgs ready to pay a serious premium for productivity AI.

Competitive Positioning

At $4–$7 for the entry tiers, they're undercutting Slack's paid plans and going toe-to-toe with Google Workspace — this is a volume play to win SMBs already in the Microsoft ecosystem. The $23.50 Copilot tier is a deliberate premium move, betting that AI features justify nearly 3x the cost of Basic.

Growth Lever

Copilot is the big expansion bet — it's the primary reason to jump from $7 to $23.50, and Microsoft is clearly using Teams as the delivery vehicle for AI upsell. Seat expansion is the other driver since there are no usage tiers, so headcount growth directly scales revenue.

Microsoft Teams Pricing FAQ

How much does Microsoft Teams cost?
Paid plans start at $4/mo, going up to $23/mo for larger teams.
Is there a free plan?
No free plan. But there is a free trial, so you can test it out before paying.
Can I try it before paying?
Yes — there's a free trial.
How does the pricing work?
Pure per-seat, billed annually — you're paying for a licensed user slot, not usage or outcomes. The interesting wrinkle is the 'Without Teams' pricing variants, which reveals Teams itself carries a $1.60–$1.70/user/month price tag baked into the bundle.
Which plan makes sense for me?
Essentials ($4) is a bare-bones hook for teams that just need meetings and chat — no Office apps, no email. The jump to Business Basic ($7) is triggered the moment a team needs SharePoint, Exchange, or OneDrive. Business Standard ($23.50) is where Copilot AI features and desktop Office apps live, targeting orgs ready to pay a serious premium for productivity AI.

More Communication pricing

Browse all tools →

Comparing Microsoft Teams to something specific? Try Microsoft Teams vs Aircall, Microsoft Teams vs Airmeet, or Microsoft Teams vs Bettermode.

Set it up once. Stay ahead all year.

Add the competitors you care about and Outmano does the watching — then hands you a weekly action plan with what to do next.

Start tracking free »