Microsoft cuts M365 Family and Premium OneDrive storage from 6TB to 2TB, and subscribers are furious

• Microsoft 365 Family and Premium are moving from 1TB per person to 2TB of shared OneDrive storage for up to six members.
• Microsoft 365 Pro includes 5TB of shared storage, while Basic and Personal retain individual storage allocations.
• New and upgraded eligible subscriptions are affected from October 2026, while existing Family and Premium subscribers transition later, subject to Microsoft’s published dates.
• Subscribers are criticizing the reduction because families that previously had up to 6TB could lose two-thirds of their combined storage.

Microsoft is replacing individual cloud storage allocations with a shared storage pool for Microsoft 365 Family, Premium, and Pro subscriptions, a change that could leave households with significantly less storage than before.

The new model applies to new and upgraded subscriptions starting October 8, 2026. Existing Microsoft 365 Family and Premium subscribers will generally transition after their first subscription renewal on or after May 2, 2027.

The announcement is already drawing criticism from subscribers, with some users considering alternatives to OneDrive or turning off automatic renewal to protest the change.

Microsoft is moving to shared storage

Under the new storage system, Microsoft 365 Family and Premium subscriptions include 2TB of shared cloud storage for the primary subscriber and up to five additional members. Microsoft 365 Pro includes 5TB of shared storage for up to six members.

Previously, Microsoft 365 Family subscribers could receive 1TB of OneDrive storage per member, allowing a six-person subscription to have up to 6TB combined. The new 2TB pool significantly reduces total included storage for households that previously used those individual allocations.

Microsoft says the shared model provides greater flexibility because members can use storage based on their needs. For example, one person can use more of the available capacity if other family members barely use OneDrive.

However, the change also means that families with several heavy OneDrive users could run out of space sooner.

Shared storage does not mean shared files. Each member’s files, photos, and documents remain private by default whether they’re on Windows 11, macOS, or a mobile device. Other members cannot access those files unless the owner explicitly shares them.

How much does Microsoft 365 cost, and how much storage do you get?

Microsoft’s new storage limits come as consumers are already paying more for Microsoft 365 following the company’s 2025 price increases.

Here is how the current US subscription prices compare with the included storage.

• Microsoft 365 Basic costs $1.99 per month or $19.99 per year and includes 100GB for one person.
• Microsoft 365 Personal costs $9.99 per month or $99.99 per year and includes 1TB for one person.
• Microsoft 365 Family costs $12.99 per month or $129.99 per year and now includes 2TB shared across up to six people.
• Microsoft 365 Premium costs $19.99 per month or $199.99 per year and includes 2TB shared across up to six people, along with higher AI usage limits and additional Copilot features.
• Microsoft 365 Pro costs $99.99 per month, or nearly $1,200 over 12 months, and includes 5TB of shared storage for up to six people, along with Microsoft’s highest Copilot usage limits.

Microsoft’s official subscription pricing lists the current prices for Personal, Family, and Premium, while its Microsoft 365 Pro listing confirms the $99.99 monthly price.

The price comparison makes the storage change harder to ignore. Before Microsoft’s 2025 price increase, Microsoft 365 Family cost $99.99 per year and provided up to 6TB across six members, with each person receiving 1TB. The annual price then increased to $129.99, and the new storage model reduces the included pool to 2TB.

Microsoft 365 Pro offers 5TB, but it costs nearly $1,200 a year at the listed monthly rate. Although Pro includes additional AI features, the storage difference alone is striking. Families that previously had access to 6TB through Family could now have to pay substantially more if they need storage beyond the new shared allowance.

Microsoft says eligible subscribers can buy additional storage, bringing total capacity up to 10TB. However, the company has not specified a single additional-storage price that applies to every subscriber.

When does the change take effect?

New and upgraded Microsoft 365 subscriptions move to the shared-storage model starting October 8, 2026.

Existing Microsoft 365 Family and Premium subscribers get more time. Their subscriptions generally transition after the first renewal on or after May 2, 2027. The company says it will notify customers before the change takes effect.

An upgrade to another eligible subscription before the transition date can trigger the shared-storage model earlier. A downgrade before May 2, 2027, does not by itself trigger the change.

Microsoft also says some existing Family and Premium customers in supported markets may receive bonus storage during the transition. The additional storage will not cost extra, but eligibility varies, and the company has not specified a universal bonus amount.

Microsoft 365 subscribers are pushing back

The storage announcement is sparking criticism from subscribers who rely on OneDrive to store photos, videos, documents, and other files. Some users are discussing alternatives, while others are considering canceling their subscriptions at renewal.

A Reddit post encourages unhappy subscribers to turn off automatic renewal and explain in Microsoft’s cancellation survey that the storage reduction is the reason. The idea is to make the dissatisfaction visible before existing subscriptions reach their transition dates. 

The backlash highlights the downside of Microsoft’s explanation. A shared pool can benefit households with uneven storage needs, but it can also leave families with substantially less total storage than they previously had across individual accounts.

Microsoft has not said whether it will reconsider the change in response to the criticism.

What happens if you exceed the storage limit?

The company says customers approaching their storage limit will receive notifications so they have time to manage their files, purchase additional storage, or upgrade their subscriptions.

If a subscription exceeds its storage limit, Microsoft says users can continue accessing their files for up to one year while they manage their storage.

Existing subscribers don’t need to make immediate changes, but it’s a good idea to check combined OneDrive usage before the transition, especially for households already using close to 2TB.

Microsoft describes the new model as a more flexible way to distribute storage. For families with uneven storage needs, that may be true. However, for households that rely on multiple individual allocations, the smaller shared pool could make Microsoft 365 less attractive and give some subscribers a reason to reconsider their subscriptions.

Microsoft’s change is not just about how OneDrive storage is allocated. It’s about how much storage an entire household gets.

Pureinfotech’s Take

As a Microsoft 365 subscriber, I’m honestly surprised by this decision. I understand the argument for shared storage, and I can see how it could help families where one person uses much more OneDrive space than everyone else. But Microsoft is dressing up a substantial reduction in included storage as a more flexible experience, and I don’t think that tells the whole story.

Microsoft 365 Family already became more expensive last year, with the annual price increasing from $99.99 to $129.99. Now, Microsoft is cutting the combined storage allowance from up to 6TB to 2TB. I’m paying more for a subscription that will offer significantly less storage, and I’m supposed to see that as an improvement?

The part that bothers me most is that storage has been a big reason to keep paying for Microsoft 365. The Office apps are useful, but OneDrive is also part of the value of the subscription. If Microsoft keeps reducing that value while asking customers to pay more, I have to question whether the service is still worth the money.

I’m now seriously considering whether I want to continue using OneDrive or renew my subscription when the time comes. I don’t expect Microsoft to offer unlimited storage, but I do expect the company to be straightforward when a change effectively reduces a benefit customers have relied on for years.

What do you think? Does the shared 2TB pool make Microsoft 365 Family more convenient, or does the loss of storage make you reconsider your subscription?