Family and Premium plans drop from 1TB per person to 2TB shared by everyone. New buyers already have the smaller pool, and most existing subscribers switch at renewal in 2027.
Microsoft is cutting the OneDrive storage that comes with Microsoft 365 Family and Premium. Instead of 1TB for each of up to six people, the whole plan will share 2TB, which works out to about 333GB each if split evenly. The price stays the same.
Families over the limit can buy extra space up to 10TB, or move files elsewhere. Microsoft is also letting all members share its Copilot AI features. Check your family's storage use now, and read the email Microsoft sends before your renewal.
A full Microsoft 365 Family plan used to come with up to 6TB of OneDrive storage. Soon it will come with 2TB, for the same price. Microsoft is replacing the old allowance of 1TB per person with a single 2TB pool that everyone on the plan shares.
That is a big deal if your household backs up phone photos, videos or school work to OneDrive. Split evenly between six people, 2TB works out to about 333GB each, a third of what each person had before. Families who already store more than 2TB will have to delete files, move them elsewhere or pay extra.
The OneDrive storage cut moves Microsoft 365 Family and Premium from separate 1TB allowances to one shared 2TB allowance for the whole plan. Each person keeps their own account, and nobody can see anyone else’s files unless they share them. What is shared is only the space.
Microsoft frames this as more flexible storage, because one heavy user can now dip into space others are not using. Critics point out that the company could have offered the same flexibility by pooling the old 6TB. It has not explained why the total had to shrink to 2TB.
Other plans are treated differently:
It depends on what kind of subscriber you are. If you bought a new Family or Premium plan, or restarted an expired one, on or after October 8, 2026, you already have the shared 2TB.
If you are an existing subscriber, you keep your current storage until your first renewal on or after May 2, 2027. That means the switch will not happen for everyone on one day. If your plan renews in August 2027, for example, the change arrives then. Microsoft says it will email you before your renewal.
Two details can catch people out. Upgrading from Family to Premium before that date moves you to the shared pool straight away. And at least one Microsoft page lists April 1, 2027, as the reference date instead, so treat the email Microsoft sends you as the final word on your own timing.
You can check your renewal date on the Subscriptions page of your Microsoft account, and see how much space your family uses under Microsoft Storage.
Microsoft 365 Family costs $129.99 a year in the US, and that price is not changing. If your family needs more than 2TB, you can buy extra storage up to a total of 10TB.
That gets expensive fast. Extra OneDrive storage has been reported at about $10 a month for each additional terabyte. On that rate, a household using 3TB would pay roughly $120 more a year, nearly doubling what it spends.
Some existing subscribers in eligible countries may get temporary bonus storage to ease the move, and Microsoft says it plans to help families that use a lot of space. It has not said who qualifies or how much they will get.
The person who pays the bill now effectively manages everyone’s storage. One teenager’s video collection can eat the space the rest of the family needs, and Microsoft’s public guidance does not clearly say whether the owner can set limits for each member.
If you go over 2TB after the switch, you will not lose your files right away. Microsoft says you will get warnings as you near the limit and can keep accessing files for up to a year while you sort things out. Its general rules for full accounts are stricter, though. Over the limit, OneDrive stops syncing and accepting new files, and Outlook.com email can stop sending and receiving. Microsoft has not said exactly how those rules apply during this grace period, so do not count on having a full year.
Here is what to do before your renewal:
Subscribers who prepaid for several years are seeking clarity on what happens to the storage they expected. Microsoft says existing customers generally keep their current benefits until renewal.
No. Basic and Personal plans have a single user and are not seeing reductions under this change.
At your first renewal on or after May 2, 2027. Microsoft will email you before it applies.
Not immediately. Microsoft says you can still access files for up to a year, but uploads and syncing may stop, so clear space early.
You're reading the quick version.
Read next
Google Play private apps let families share tools without fees
Adults can build an Android app in Google AI Studio and install it through a private corner of Google Play, with no $25 developer fee. Sharing with family comes later.
Meta's new app hides an AI journal inside a pixel pet. It is free, adults only and live in one country, and it hints at a bigger holiday plan.
Apple's creative app bundle is getting MotionVFX effects and AI assistants in November. Here's what it costs in the US and Canada, and when buying outright wins.
Meta quietly put Instagram on the Apple TV App Store with no announcement. What you can watch, what you need to install it, and why Meta wants your couch.
The Daily Brief
Every morning, the news that matters from AI, phones, apps and the people shaping tech. Explained in plain English. Free.
One email a day. No spam, unsubscribe anytime. Privacy policy
