Google Workspace vs Microsoft 365 for Small Business (2026)

The Short Answer

We set up a lot of business email. The question we hear most is which one to buy, Google Workspace or Microsoft 365. Most guides answer with price. In October 2026 that answer no longer works.

On October 12, 2026 we read both companies' own US pricing pages. The three main business plans cost exactly the same at both. $7, $14 and $22 a user a month on a yearly plan. $8.40, $16.80 and $26.40 on a monthly one. Not close. The same, to the cent.

So the choice comes down to three things. Do you need Word and Excel installed on a computer? How much storage does each person need? And which inbox does your team already know?

• Pick Microsoft 365 if anyone on the team opens big Excel files, uses Word templates, or works on a Windows PC all day.
• Pick Google Workspace if your team works from phones, already uses Gmail, and shares files more than it builds them.

The Prices Side by Side

These are the US list prices per user per month, before tax, read on each company's own page on October 12, 2026. Sources are at the bottom of this page.

Google's page says a one year commitment saves 16 percent. Microsoft lists its monthly price as a separate monthly subscription. Both companies run short sales from time to time. Google was showing a discount on the first three months when we checked. Plan on the regular price, because that is what you pay after month three.

Microsoft also sells plans with Copilot built in. Business Standard with Copilot is $23.50 a user a month, and Business Premium with Copilot is $32, both paid yearly. You can also add Copilot to a plan you already have. Microsoft lists that add on at $21, on sale for $18 through December 31, 2026.

What a Five Person Team Pays

Here is the math for a small shop with five people on the yearly plan. It is a worked example, not a quote.

Paying month to month adds 20 percent. Five users on the entry plan comes to $504 a year that way.

Where They Really Differ

Price is a tie. These are the parts that are not.

Storage

This is the biggest gap, and it flips between plans.

At $7, Microsoft gives each person a 100 GB mailbox and a separate 1 TB for files. Google gives 30 GB per person, and it covers Gmail and Drive together. Google pools that storage across your team, so a light user leaves room for a heavy one.

At $14, Google pulls ahead with 2 TB per person against Microsoft's 1 TB. If your team stores lots of photos, video or plans, that matters.

Desktop Apps

Microsoft Business Basic gives you Word, Excel and PowerPoint on the web and on phones only. The installed desktop apps start at Business Standard. That plan covers up to 5 PCs or Macs, 5 tablets and 5 phones per user.

Google's plans do not include installed Office apps at all. You get Docs, Sheets and Slides, which run in the browser and in phone apps. They open Word and Excel files, but if your bookkeeper lives in Excel macros, that is a real gap.

AI Tools

Both now ship some AI on every plan. Google's Starter plan includes its Gemini assistant in Gmail and the Gemini chat app, but not in Docs. Standard adds Gemini in Docs, Meet and more. Microsoft includes Copilot Chat on Business Basic. Copilot inside Word, Excel and Teams costs extra, through the add on or the "with Copilot" plans above.

For most small teams the AI is not the reason to pick one. Try it during the trial, then decide if it is worth more money.

Video Meetings

Google lists meeting sizes on its pricing page. Starter allows 100 people in a meeting, Standard 150 and Plus 500. Microsoft includes Teams for chat, calls and meetings on all three business plans. It also sells cheaper versions without Teams. Business Basic without Teams is $5.40 a user a month on a yearly plan.

Trials and Refunds

Google offers a 14 day trial. Microsoft offers a one month trial, but it needs a credit card and turns into a paid plan when it ends unless you cancel. After you pay, Microsoft gives a 7 day window for a prorated refund. Microsoft also says that when a subscription is canceled, its data is deleted. Export what you need first.

Team Size

Both cap these business plans at 300 users. Past that, both push you to an enterprise plan. Very few small businesses hit that limit.

What We Found in 1,000 Small Business Domains

Most comparisons are written by companies that resell one of the two. We wanted to see what real small businesses actually use. So on October 12, 2026 we looked up the mail records, called MX records, for 1,000 independent auto repair shop websites picked at random. An MX record tells the internet which company handles mail for a domain. Our guide to DNS records explains how they work.

Here is what came back.

• 57 of the 1,000 domains no longer worked at all.
• 334 of the working domains had no mail set up. That is 35 percent. Those shops use a free inbox, or no email on their own name.
• Of the 609 domains with mail, Google handled 157, or 26 percent. Microsoft handled 91, or 15 percent.
• More than half, 329 domains, used their web host, their domain company or a smaller mail service.

Two lessons stand out. First, Google is the more common pick among small shops, by close to two to one. Second, the biggest group is not on either one. Mail that comes free with a web host is tied to that host. If you move the website, the mail can break. That is one more reason to keep email on its own service. Our business email setup guide covers how to move it safely.

What the Top Comparisons Get Wrong

We read the pages that rank for this question before we wrote this one. Three problems keep showing up.

• Old prices. The best linked comparison, from Style Factory, was last updated in February 2025. It lists Microsoft Business Basic at $6 and Standard at $12.50. On October 12, 2026 the plans matched Google's prices exactly.
• Storage told half way. Most pages say Microsoft gives 1 TB and Google gives 30 GB, and stop. That is true only at the entry level. At $14 Google gives twice as much.
• No email setup. Almost none of them explain that you still have to point your domain at the service and add mail records. That step is where most small business email breaks.

How to Choose in Five Minutes

Answer these in order. Stop at the first one that is a clear yes.

1. Does anyone need Excel or Word installed on a computer? Pick Microsoft 365 Business Standard.
2. Does your team already use Gmail on their phones? Pick Google Workspace Business Starter or Standard.
3. Do you store lots of photos, video or plans? Pick Google Workspace Business Standard for the 2 TB.
4. Do you want a big mailbox for the lowest price? Pick Microsoft 365 Business Basic for the 100 GB mailbox.
5. Still a tie? Run both trials for one week with two real people. Pick the one they stop complaining about.

Email Setup for Either One

The setup steps are close to the same for both. You add your domain, prove you own it, create a mailbox for each person, then change your MX records. Google's MX value is smtp.google.com. Microsoft shows its value inside its admin center.

Then add SPF, DKIM and DMARC so your mail lands in the inbox and not in spam. Our guide to SPF, DKIM and DMARC explains each one. When you are done, run your domain through our free email security checker to see if all three are in place.

One warning. Changing MX records only moves new mail. Old messages stay where they were until you move them. Move them before you cancel the old service.

Get Help With the Switch

If you would rather have someone else set up either one, T3CHS sets up business email on your own domain, with the mail records done right.

Common Questions

Is Google Workspace cheaper than Microsoft 365?

Not in October 2026. On October 12, 2026 both listed their entry, middle and top business plans at $7, $14 and $22 a user a month on a yearly plan, and $8.40, $16.80 and $26.40 on a monthly plan.

Can I use Google Workspace and Office 365 together?

Yes. Many teams keep email on one and use the other's apps. Your domain's mail should point to one provider at a time, so pick one for email and use the other for documents if you need to.

What is the Google equivalent of Microsoft 365?

Google Workspace. Gmail matches Outlook, Docs matches Word, Sheets matches Excel, Slides matches PowerPoint, Drive matches OneDrive and Meet matches Teams meetings.

What are the disadvantages of Google Workspace?

There are no installed desktop versions of Word or Excel. The entry plan gives only 30 GB per user for mail and files together. The free trial is 14 days, shorter than Microsoft's one month.

Does Microsoft 365 Business Basic include desktop Office apps?

No. Business Basic includes the web and phone versions of Word, Excel and PowerPoint. The installed desktop apps start with Business Standard.

Which is better for a small business with under 10 people?

Either one works. Pick Microsoft 365 if someone needs desktop Excel or Word. Pick Google Workspace if the team already uses Gmail and works mostly from phones and browsers.

Sources

1. Google Workspace: Compare Pricing Plansworkspace.google.com
2. Microsoft 365: Business Plans and Pricingmicrosoft.com
3. Microsoft 365 Business Basicmicrosoft.com
4. Microsoft 365 Business Standardmicrosoft.com
5. Microsoft 365 Business Premiummicrosoft.com
6. Google Workspace Admin Help: Set Up MX Recordsknowledge.workspace.google.com
7. Microsoft Learn: Connect Your Domain by Adding DNS Recordslearn.microsoft.com
8. Style Factory: Microsoft 365 vs Google Workspace (updated February 3, 2025)stylefactoryproductions.com

Last reviewed October 14, 2026.