Microsoft Teams Pricing (2026)

Strictly per-seat, billed annually, with three separate entry points depending on whether you just want Teams or the whole Office stack bundled in. You're not paying for Teams as a standalone product here — you're paying for a seat in Microsoft's productivity ecosystem, and Teams is either the whole point ($4) or the free-ish add-on to Office apps ($7+).

From $4/mo 3 plans per-seat Free trial Best Microsoft Teams alternatives → Microsoft Teams's competitors →
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 Sep 19, 2026 Official pricing page
Screenshot of Microsoft Teams's pricing page showing its plans and prices
Their pricing page, captured Sep 19, 2026

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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

Does Microsoft Teams have a free plan?

No. There's no free-forever plan. There is a free trial, and paid plans start at $4/mo.

Want free? Chanty and Fellow have free plans: see all Microsoft Teams alternatives →

AI Pricing Analysis

Pricing Model

Strictly per-seat, billed annually, with three separate entry points depending on whether you just want Teams or the whole Office stack bundled in. You're not paying for Teams as a standalone product here — you're paying for a seat in Microsoft's productivity ecosystem, and Teams is either the whole point ($4) or the free-ish add-on to Office apps ($7+).

Tier Strategy

Teams Essentials at $4 is the meeting/chat-only play for small teams or solopreneurs who don't need Word/Excel/Outlook. Business Basic at $7 is the jump for anyone who realizes they also need email and cloud Office apps, and the Copilot tier at $23.5 is aimed at orgs ready to pay a steep premium for AI features layered on top of the full suite — the upgrade trigger there is less about seats and more about wanting AI baked into daily workflows.

Competitive Positioning

Teams Essentials at $4 undercuts Zoom and Slack's paid tiers pretty aggressively, positioning Microsoft as the budget-friendly choice for pure video/chat needs. But the real strategy is using that low price as a wedge to upsell into the Business Basic/Standard bundles, where Microsoft's actual competitive advantage — owning the whole productivity stack — kicks in.

Growth Lever

The big lever isn't seat count, it's feature tier: moving customers from 'just meetings and chat' to 'full Office suite' to 'AI-powered Office suite.' Copilot is the clear premium hook — nearly 6x the price of Essentials — betting that once teams get hooked on Teams for collaboration, AI features become the next thing they can't say no to.

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?
Strictly per-seat, billed annually, with three separate entry points depending on whether you just want Teams or the whole Office stack bundled in. You're not paying for Teams as a standalone product here — you're paying for a seat in Microsoft's productivity ecosystem, and Teams is either the whole point ($4) or the free-ish add-on to Office apps ($7+).
Which plan makes sense for me?
Teams Essentials at $4 is the meeting/chat-only play for small teams or solopreneurs who don't need Word/Excel/Outlook. Business Basic at $7 is the jump for anyone who realizes they also need email and cloud Office apps, and the Copilot tier at $23.5 is aimed at orgs ready to pay a steep premium for AI features layered on top of the full suite — the upgrade trigger there is less about seats and more about wanting AI baked into daily workflows.

More Communication pricing

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Comparing Microsoft Teams to something specific? Try Microsoft Teams vs Aircall, Microsoft Teams vs Airmeet, or Microsoft Teams vs Bettermode. Or see the best Microsoft Teams alternatives, ranked.

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