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Microsoft 365 Family plans move to 2TB of shared storage at renewal

Microsoft is replacing per-member storage on 365 Family with one 2TB pool, taking effect for existing subscribers at renewal on or after May 2, 2027.

By Sasha Shader, Software & Security Reporter ·

Edited by Dot Matrix, Editor-in-Chief

A gray shared storage cabinet on a kitchen table, linked to a laptop, tablet, and phone, with its gauge needle near full.
A shared family storage pool nearing its limit at the kitchen table. Illustration generated by AI.

Microsoft has cut the cloud storage in its 365 Family plan from up to 6TB to a single 2TB pool shared by every member. Before October 8, each member got 1TB. The price has not moved: $13 a month or $130 a year. 1

The same change applies to Microsoft 365 Premium, which includes everything in Family plus more advanced AI features that only the plan administrator can use. 1

Seen it before: the price stays put and the allowance quietly shrinks. This is how a subscription tier gets rebalanced without anyone announcing a price increase.

When it hits you. If you subscribed to Family before October 8, you move to shared storage the first time you renew on or after May 2, 2027. 1

What you should do. Check the following before your renewal date:

  • Add up what each person on the plan currently stores. If the total tops 2TB, you will need to trim or buy more.
  • Think twice before switching plans. Changing plans before your scheduled transition date may cause Microsoft to apply the shared model to your account immediately. Moving to Premium, for instance, could pull the change forward. 1
  • Downgrading from Premium to Family keeps you on the current storage model until your subscription renews on or after May 2. 1
  • Watch for the notice. Microsoft says it will send details about the storage changes before they are applied to your plan. 1

If 2TB is not enough, extra storage is sold in packs of 100GB, 500GB, 1TB or 6TB, up to a total of 10TB added to a plan. The plan owner can assign those packs to individual members, depending on who needs them or who is paying. 1

A practical wrinkle: because the pool is shared, one heavy user can eat into everyone else’s space. Families that relied on each person having a private terabyte will want to talk before May.

This account rests on a single outlet’s reporting of Microsoft’s announcement. The dates and pack sizes above are as published there.

Our read: A price held flat while the storage allowance drops by two-thirds at the top end is a price increase in everything but name. Existing subscribers have until May 2027 to sort out their files, which is generous, provided you read the renewal notice rather than file it with the others.

Footnotes

  1. Engadget, “This Microsoft 365 Family plan cloud storage change may leave you frustrated”. Retrieved October 31, 2026. ↩ ↩2 ↩3 ↩4 ↩5 ↩6 ↩7

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