Microsoft 365 Family Users Are Losing Their Individual 1TB, and Sharing Just 2TB Instead

Microsoft has quietly reshaped one of its most popular subscriptions, cutting the total cloud storage available to a full Family plan by two-thirds while keeping the price the same.

Previously, a Microsoft 365 Family plan gave each member up to 1TB of OneDrive storage, for a total of up to 6TB across six people. Under the new model, announced in October, the whole plan shares a single 2TB pool instead.

The change already applies to new and upgraded Family and Premium subscriptions from October 8, 2026. Existing subscribers keep their current allowance until their first renewal on or after May 2, 2027, when they switch to the shared pool. Microsoft says it will notify customers with more detail before the change takes effect for them.

Sharing the pool does not mean sharing files: each member's documents remain private unless they deliberately share them. But a household where one person stores a large photo or video library could now eat into space everyone else relies on, and families that need more room will have to buy add-on packs, up to 10TB in total.

The price has not fallen to match the smaller allowance. Engadget reported the Family plan still costs $13 a month or $130 a year in the United States, a detail that has frustrated subscribers who signed up largely for the storage.