Microsoft 365 Family cuts combined storage to 2TB

Microsoft has reduced the combined cloud storage included with new Microsoft 365 Family subscriptions from a potential 6TB to a single 2TB allowance. Existing customers are scheduled to switch to this shared arrangement from May 2027. The change, introduced on October 8, 2026, replaces individual OneDrive allocations of 1TB per person.

Families previously had six separate terabytes, but now must manage their collective files within a smaller common pool. Existing subscribers who joined before October 8 generally retain their individual allowances until the first subscription renewal on or after May 2, 2027. Microsoft will email affected customers before the change takes effect, and they can move to another eligible subscription earlier to accelerate the transition.

The reduction is significant for households using most of their previous 6TB allowance, as they can now only share 2TB regardless of the number of users. Microsoft presents the new arrangement as more flexible, allowing one person to occupy more than 1TB as long as the combined usage of everyone on the plan remains below the shared limit.

However, this flexibility may not benefit families storing several terabytes across multiple accounts, who may need to delete files, transfer data, or pay for additional capacity.