Microsoft is changing how OneDrive storage works for Microsoft 365 Family and Premium, replacing separate 1TB allowances for each member with a 2TB pool shared across the subscription. For a fully shared six-person plan, that cuts the maximum total storage from 6TB by two-thirds. Existing subscribers are scheduled to move to the new setup at renewal starting in 2027.
Key takeaways
Microsoft says the pooled storage will make space available where members need it, but households using more than 2TB could need to delete files, find another service or pay for more capacity.
- Family and Premium plans move from up to 6TB combined to 2TB shared.
- New or upgraded subscriptions get shared storage starting October 8, 2026.
- Existing subscribers transition at their first renewal on or after May 2, 2027.
How the new storage limit works
Today, each member on a Microsoft 365 Family plan can receive 1TB of OneDrive storage. With the subscription shared among the owner and five additional people, the total can reach 6TB. Under the new model, everyone’s usage will count against one 2TB pool rather than separate individual allotments. Members’ accounts and files remain private, Microsoft says.
The pool may help households where one person needs more than 1TB while other members use relatively little. But families that regularly use more than 2TB combined will lose capacity, even if no individual account exceeds its current 1TB allowance.
Rollout dates and possible costs
Microsoft’s announced schedule gives new and upgraded subscriptions the shared-storage model from October 8, 2026. Existing Family and Premium subscribers are expected to switch at their first renewal on or after May 2, 2027, unless they change to an eligible plan earlier. Microsoft says it will notify affected customers in advance.
The subscription price is not changing alongside the storage reduction. Microsoft 365 Family costs $129.99 per year in the US, and additional OneDrive capacity may add to the bill. ZDNET reports that an extra 1TB costs $9.99 per month, which could make retaining more than the new shared allowance substantially more expensive for heavy users.
What subscribers should consider
Microsoft is also moving AI usage credits to a shared allowance for family members, with controls for the subscription owner. For storage, the practical first step is to check combined OneDrive usage across the plan and identify whether the household depends on more than 2TB.
Users facing a shortfall can reduce stored data, pay for additional capacity, or move some files to another cloud provider or local storage. A network-attached storage system can offer an alternative for technically comfortable households, though it requires upfront hardware and ongoing backup planning. The change is unlikely to affect many families below the new limit, but it is a significant capacity cut for subscribers who relied on the full 6TB.
Via Microsoft