Microsoft will cut OneDrive storage on Microsoft 365 Family and Premium plans to 2 TB shared from renewals on or after May 2, 2027. Up to six users each got 1 TB before, and the price is not changing.
What Happened?
- Microsoft 365 Family and Premium households lose their 6 TB combined total and move to a single 2 TB shared pool.
- New subscriptions and plan changes have used the 2 TB cap since October 8, 2026, while existing plans switch at renewal.
- Microsoft lets households buy extra storage for an added charge, up to a 10 TB total per subscription.
- Copilot AI features in these plans will extend to up to five more household members over the coming months.
Upgrading now triggers the cap early
Each family member previously received 1 TB of OneDrive space, or 6 TB across a full six-person plan. The new 2 TB quota now covers the whole household. Storage that subscribers already bought carries over. Microsoft said the same applies to free storage bonuses from family members.
The pool is shared, but the files are not. Each member still sees only their own data unless they share files with someone else. Microsoft 365 Pro, a separate tier, includes 5 TB of shared storage.
Timing depends on what a subscriber does next. Changes for new and updated subscriptions took effect on October 8, 2026. A household that upgrades from Family to Premium today gets the 2 TB shared limit immediately. A downgrade keeps the old allowance until the standard switchover.
Microsoft 365 Family subscribers are set to lose up to 4TB of included OneDrive storage, reducing the plan’s maximum shared storage from 6TB to 2TB. The company frames the change positively, saying it automatically allocates storage to users who need it most, but many users are reacting differently. https://t.co/mqscxqMkjE
— Windows Central (@WindowsCentral) October 9, 2026
Microsoft’s FAQ says existing customers in “supported” markets may get temporary bonus storage if they meet “eligibility requirements” and renew. “You do not pay extra for this bonus storage. It will be added to the storage included in your subscription,” the company said. Microsoft has not named the markets, the bonus size, or how long it lasts.
Copilot sharing reaches the whole household
The storage cut lands alongside a perk. Microsoft is extending Copilot AI features in Family and Premium plans to up to five other family members. The Verge first spotted the change in emails sent to existing subscribers.
Until now, only the primary account holder could use Copilot after Microsoft bundled it into consumer subscriptions. Office apps and OneDrive storage were already shareable across the household. Microsoft says the rollout will happen over the “coming months” and has given no firm date.
Read together, the two changes rebalance the family bundle around AI. Households give up storage they could measure and gain Copilot seats they were locked out of. Light users barely notice, while photo-heavy families that leaned on six separate terabytes absorb the loss.
Why It Matters?
Several gaps remain in Microsoft’s materials. Which markets count as “supported” for the bonus storage? How much bonus space applies, and for how long? What will extra storage cost a household that needs it?
Microsoft will notify subscribers before the cap applies at their next renewal. Households above 2 TB must then buy more storage or delete files. Microsoft keeps their files during a grace period of up to one year. Checking combined OneDrive usage now, before any Family-to-Premium upgrade, helps families avoid hitting the cap early.
