Check Current License Assignments Before Microsoft 365 License Prices Increase in July 2026

Microsoft 365 license prices will increase in July 2026. To avoid unnecessary expenses, you need to review your current license assignments now. By checking who holds which licenses and how those licenses are used, you can identify unused, redundant, or unnecessary licenses and adjust assignments to control costs before the price increase takes effect.

How do I find out which Microsoft 365 licenses are currently assigned?

You can review license assignments through the Microsoft 365 Admin Center or by using PowerShell, depending on your needs.

To check licenses in the Admin Center:

1. Sign in at admin.microsoft.com with your admin account.
2. Navigate to "Users" > "Active users."
3. Select a user to view their assigned licenses under "Licenses and Apps."
4. To review assignments for all users, select all users on the list and click "Export users." The exported CSV file includes each user’s license details.

For a detailed report using PowerShell:

1. Open PowerShell with administrator rights.
2. Connect to Microsoft 365 by running:

Connect-MsolService

3. After you authenticate, export all users and their license information:

Get-MsolUser -All | Select DisplayName,UserPrincipalName,Licenses | Export-Csv -Path "C:\Temp\M365LicenseReport.csv" -NoTypeInformation

This command generates a CSV file listing all users and their assigned licenses, making it easier to analyze license distribution across your organization.

Why should I review license assignments before the July 2026 price increase?

The July 2026 price increase means every assigned Microsoft 365 license will cost more. If you keep licenses assigned to users who don’t need or use them, your expenses will rise unnecessarily.

Reviewing license assignments now helps you spot and remove inactive or overlapping licenses, so you only pay for what’s actually needed. This gives you better control over your budget and prevents surprises when billing changes.

What are common mistakes or overlooked licenses that can inflate costs?

Here are frequent issues that can lead to higher license costs:

• Inactive or former employees who still have licenses assigned.
• Shared mailboxes or service accounts that are assigned full licenses unnecessarily.
• Users with overlapping licenses providing similar features, resulting in paying twice for the same capabilities.
• Licenses assigned to users who rarely or never sign in.
• Temporary or trial licenses that were never removed.

Checking for these situations helps avoid paying for licenses that don’t add value.

How can I identify and remove unused or unnecessary licenses?

Start by comparing license assignments with actual usage:

1. In the Admin Center, go to "Reports" > "Usage" to see user activity across Microsoft 365 services.
2. Match these reports with your license assignment list to find users with low or no activity.
3. For inactive users or those who have left, remove assigned licenses.

Removing a license can cause data loss or restrict access. Back up any important data before unassigning licenses.

4. To remove licenses via the Admin Center, select the user, open "Licenses and Apps," and uncheck the licenses you want to remove.
5. To remove licenses in bulk or via PowerShell, use this command:

Set-MsolUserLicense -UserPrincipalName [email protected] -RemoveLicenses "licenseSkuId"

Replace "[email protected]" and "licenseSkuId" with the real user principal name and license SKU.

6. Reassign recovered licenses to users who need them or reduce your total license count accordingly.

This approach ensures you aren’t paying for licenses that aren’t being used or needed.

What practical steps can I take now to optimize license assignments and save costs?

To reduce costs before the price increase, take these steps:

• Regularly audit license assignments using both Admin Center reports and PowerShell exports.
• Remove licenses from accounts no longer in use as soon as you identify them.
• Consolidate overlapping licenses by assigning the most appropriate license for each user’s role.
• Use group-based licensing to manage assignments efficiently, applying or removing licenses in bulk as users change roles.
• Set policies to reclaim licenses from users inactive for a defined period.
• Inform team leads and managers about the importance of reporting unused licenses or role changes that affect license needs.

These actions help you eliminate waste and prepare your organization to handle the upcoming price increase without unexpected costs.

Conclusion

Reviewing your Microsoft 365 license assignments now gives you clear insight into current usage and costs. By identifying and removing unused or unnecessary licenses before July 2026, you’ll avoid paying more than necessary after prices rise. Regular license audits and proactive management will keep your Microsoft 365 expenses aligned with actual business needs.

Frequently Asked Questions

Can I automate license assignment reviews regularly?

Yes. You can schedule PowerShell scripts to run at regular intervals to generate license reports automatically. This keeps you informed about license usage without manual effort.

What if a user needs a license temporarily?

Assign licenses only for the period they’re needed and remove them as soon as the temporary need ends. This prevents unnecessary costs from lingering licenses.