Microsoft has reduced the amount of OneDrive storage available across several Microsoft 365 plans by replacing individual 1 TB allocations with shared storage pools.
The change affects Microsoft 365 Family, Premium and Pro subscriptions. New customers are already subject to the new limits, while existing subscribers will move to the revised system at their first renewal on or after May 2, 2027.
Previously, Family, Premium and Pro plans provided 1 TB of OneDrive storage to each person on the subscription. Because the plans could be shared with up to five additional people, a fully used subscription could provide as much as 6 TB of total cloud storage.
Under the new system, that total can be considerably smaller.
Family and Premium Plans Drop to 2TB Shared Storage
Microsoft 365 Family and Premium now provide a single 2 TB OneDrive pool that is shared among everyone on the account.
Microsoft 365 Pro receives a larger shared pool of 5 TB.
| Microsoft 365 plan | Previous storage | New storage |
|---|---|---|
| Family | Up to 6 TB total, 1 TB per person | 2 TB shared |
| Premium | Up to 6 TB total, 1 TB per person | 2 TB shared |
| Pro | Up to 6 TB total, 1 TB per person | 5 TB shared |
| Personal | 1 TB | No change |
| Basic | 100 GB | No change |
For one person, the new Family or Premium arrangement can actually be more generous because a solo subscriber can effectively use the full 2 TB instead of being limited to 1 TB.
Two people sharing the same subscription also see little difference because the new total matches the previous combined allocation.
The change becomes much more significant once three or more people share the plan.
A six person Family subscription that previously offered up to 6 TB now has only 2 TB available across the entire group.
Files Remain Private Despite Shared Storage
The new shared storage model does not mean everyone on a Microsoft 365 subscription can see each other's files.
Each person's files remain private.
The shared element applies only to the storage quota. Every member draws capacity from the same overall pool, but access permissions and file ownership remain separate.
That distinction is important for households that use Microsoft 365 with several independent accounts.
One member using a large amount of OneDrive storage could still reduce the remaining capacity available to everyone else, even though the actual files remain inaccessible to other members.
Storage Add Ons Increase the Shared Pool
Subscribers can purchase additional OneDrive storage, but those additions also contribute to the shared pool.
Storage purchased by individual members is automatically added to the overall subscription capacity rather than creating a separate private storage allowance for that specific person.
Eligible free storage grants from family members also count toward the shared total.
This means households that exceed the new limit can expand their available capacity, but management is now centered around a common storage pool instead of fixed allocations for each member.
Subscription Prices Are Staying the Same
Microsoft is not reducing subscription prices alongside the storage changes.
Microsoft 365 Family remains priced at $12.99 per month or $129.99 per year.
Microsoft 365 Premium continues to cost $19.99 per month or $199.99 annually.
Microsoft 365 Pro remains considerably more expensive at $99.99 per month and does not have an annual payment option.
The smaller non shareable plans are unaffected.
Microsoft 365 Basic still includes 100 GB of cloud storage for $1.99 per month or $19.99 per year, while Microsoft 365 Personal continues to provide 1 TB for $9.99 per month or $99.99 annually.
For households with three or more active OneDrive users, the revised Family and Premium plans represent a meaningful reduction in included storage. Existing subscribers have some time before the new limits apply, but anyone renewing on or after May 2, 2027 will need to account for the new shared storage model.
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