Microsoft 365 Family plans move to 2 TB of shared OneDrive storage

Until now, Family, Premium and Pro plans gave each member 1 TB of OneDrive space. With up to six members, that added up to as much as 6 TB per plan.

Under the new model, everyone on the plan draws from one shared pool, still capped at six people:

Microsoft's page also lists Personal at 1 TB for the account holder and Basic at 100 GB for one person. Those are single-person plans, so the shared pool does not apply to them.

The Register reports that fully shared Family and Premium subscriptions lose up to 4 TB of combined capacity. Pro subscriptions lose up to 1 TB.

The timing depends on whether you are new or already paying.

• New and upgraded subscriptions: the shared model applies from October 8, 2026.
• Existing subscribers: the change arrives at the first renewal on or after May 2, 2027, unless you change plans earlier.
• Reminders: Microsoft says it will email subscribers before the change applies.

That gives current customers about seven months. Nothing changes for your storage today.

Microsoft's stated reason is flexibility. Its page says the goal is "to provide a more flexible experience" and that shared storage helps ensure that one person does not run out of space while other members have unused storage available.

Why it matters: the old model wasted room for light users and boxed in heavy ones. A teenager with a 1 TB video library and a grandparent with 5 GB of photos could not trade space. A pool lets the heavy user borrow from the light one.

Microsoft also says add-on storage bought by any member goes into the shared pool, so one person's purchase helps everyone. Eligible members' free storage grants also count toward the pool.

Tom's Hardware points out the split clearly. The new setup suits a plan with one power user and several light ones. That user can now go well past 1 TB as long as the pool has room.

It is harder on plans where several people each use a lot. Tom's Hardware gives the example of four users with 500 GB each: that fills the 2 TB pool, and anyone who wants to add more has to buy extra space.

In real life Say your Family plan has four people. You use 800 GB of photos, your partner uses 600 GB, and two kids use 200 GB each. That is 1.8 TB, so you fit, with 200 GB to spare. Add one more 4K video project and you are shopping for add-ons.

The Register adds that a plan owner who does not share the plan can use the whole pool. Microsoft's own FAQ makes the same point.

Tom's Hardware ran the numbers for a heavy solo user. Microsoft 365 Personal costs $99.99 a year and includes 1 TB. Getting to 2 TB on Personal means paying an extra $9.99 a month, or $119.88 a year, for add-on storage.

Microsoft 365 Family costs $129.99 a year and already comes with 2 TB. For one person who needs more than 1 TB, Tom's Hardware says switching to Family is the cheaper route.

• Personal plus add-on: $99.99 plus $119.88 a year, about $219.87 in total for 2 TB.
• Family: $129.99 a year for 2 TB, shared with up to five other people.
• Small add-on: from $1.99 a month for 200 GB, as Tom's Hardware lists it.

By the numbers: Tom's Hardware also calculates that a six-person plan has its total capacity cut by 66.6%, from 6 TB to 2 TB. Microsoft has not changed subscription prices as part of this announcement, so the difference is entirely in what the same price buys.

Prices come from Tom's Hardware's report and may differ by country, so check Microsoft's store page for your region before deciding.

Microsoft says nothing is deleted the moment you pass 2 TB. You get notifications as you approach the limit so you can plan.

If you exceed it, you can keep accessing your files for up to one year while you act. Your options, per Microsoft, are to free up space, buy more storage, upgrade your subscription or take other steps.

The page says plans can grow to 10 TB with add-ons. Tom's Hardware reports that extra storage starts at $1.99 a month for 200 GB.

The catch: the one-year window is for catching up, not a permanent extension. After that, you need to be under the limit or have bought more space.

Some existing Family and Premium customers may get transitional bonus storage when their plan switches. Microsoft says: "You don't pay extra for this bonus storage."

It applies to eligible customers in supported markets. Tom's Hardware notes that Microsoft did not spell out the eligibility requirements, and The Register calls the bonus temporary. So treat it as a cushion, not a plan.

The Register says a Reddit thread on the change had little positive to say. It reports that commenters talked about cancelling rather than facing a reduction and a clean-up of their files.

Microsoft's support page includes the steps to cancel a subscription. You go to account.microsoft.com/services/microsoft365, choose Cancel subscription and review your options. Access continues through your current billing period.

Tom's Hardware ties the move to a wider storage squeeze. It cites hard drive prices that rose 46% from September 2025 to January 2026, and enterprise SSDs that are sold out until 2027, with 30 TB drives costing $22,600.

It also notes that Google cut its free storage limit from 15 GB to 5 GB, and that Backblaze updated its terms for "unlimited" backups. Microsoft has not said that hardware costs drove this change, and its own stated reason is flexibility.

The Register notes that this is not Microsoft's first storage change. Office 365 once came with unlimited cloud storage, which ended, and education allowances were cut to 20 GB at one university in 2024.

• Solo owner: you likely gain space, since you can use the full pool.
• Family with one heavy user: the pool is a better fit than 1 TB each.
• Family with several heavy users: check your total now, because 2 TB is shared.
• Existing subscriber: your storage does not change until renewal on or after May 2, 2027. Check your total in the OneDrive settings before then.