On Microsoft 365 Business plans, the SharePoint storage limit for your whole organisation is 1 TB plus 10 GB for every licence you've bought. So a business with 100 users gets 2 TB in total, and it isn't unlimited.
Here's the catch. The 1 TB is only the base, the site Recycle Bin counts against it, and if you keep running over the limit your whole tenant risks being put into read-only mode. There's a one-time escape hatch called Confirm purchase, and it's worth knowing about before you need it. Figures below are as of October 2026.
SharePoint storage limits at a glance
| Limit | Business plans |
|---|---|
| Base storage per organisation | 1 TB |
| Added per licence | 10 GB |
| Maximum per site | 25 TB |
| Maximum users on Business plans | 300 |
| Teams Essentials | 10 GB per user |
| Largest file upload | 250 GB |
| Total path length, including file name | 400 characters |
How to work out your own total
The sum is simple. Start with 1 TB, then add 10 GB for each licence. Microsoft's own example is 1 TB of base storage plus 100 users, which comes to 2 TB.
A few things sit outside or inside that total that people get wrong:
- The OneDrive created for each licensed user isn't part of your SharePoint storage. It's counted separately.
- The site Recycle Bin is part of it. Deleted files still take up space until the bin's emptied, and Microsoft recommends emptying it regularly.
- Each site can hold up to 25 TB, and you can have up to 2 million sites, but your organisation total is still the ceiling.
Run the same sum for a smaller team. With 20 licences you'd have 1 TB plus 200 GB, and each new licence adds another 10 GB, so the total grows slowly for a small business. Business plans cover up to 300 licensed users, while Microsoft's other plan categories allow anywhere from 1 to 500,000. If you're not sure how much of your personal space you're using, here's how to check your OneDrive storage.
What read-only mode means for your team
If a tenant keeps operating above its storage limit, it risks being put into read-only mode. In that state your people may not be able to add or change content. For a business that keeps proposals, contracts and client files in SharePoint, that stops work.
There are three ways out: reduce how much you're storing, buy more storage, or buy eligible licences, since each licence adds its 10 GB.
After a purchase, the Confirm purchase option can lift read-only mode for up to 14 days while the new capacity's applied. You can only use it once in any 365-day period. Treat it as an emergency button, not a habit.
Free up space before you buy any
- Open the SharePoint admin center and check Storage usage.
- Empty the site Recycle Bins, since they count toward the total.
- Delete old versions you don't need.
- If you're still near the limit, buy extra storage. It comes in 1 GB increments and there's no cap on how much you can add.
- If you're already read-only, buy storage and use Confirm purchase, remembering it works once per 365 days.
Per-file and per-library limits that catch people out
Hitting the organisation total isn't the only wall. These limits apply to single files and libraries:
- 250 GB is the largest file you can upload.
- 250 MB is the largest file you can attach to a list item.
- 20 GB is the most you can download as a ZIP.
- 400 characters is the total path, file name included. Deep folder structures with long names hit this first.
- A list can hold up to 30 million items, and a library up to 30 million files and folders.
- Once a list, library or folder holds more than 100,000 items, you can't break or re-inherit permissions on it.
That last one matters if you plan to share one client folder inside a giant library. Set up permissions before the library gets big, or split it into separate libraries.
OneDrive sync limits
OneDrive accepts files up to 250 GB for upload or sync. Microsoft recommends syncing no more than 300,000 items in total. Each device can sync one personal account and up to nine work or school accounts. Because each person's OneDrive sits outside your SharePoint total, personal working files kept there don't eat into the shared pool.
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My verdict on SharePoint storage
I'd check Storage usage once a quarter and empty the Recycle Bins when I did, because that's the cheapest space you'll ever free. If you're a small team on Business plans, the 10 GB per licence won't grow fast, so plan for it. Don't wait for read-only mode to find out where you stand, and save Confirm purchase for the day you need it, since you'll only get it once a year.
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Frequently asked questions
What is the SharePoint storage limit for small businesses?
On Microsoft 365 Business plans it's 1 TB per organisation plus 10 GB for each licence you buy, as of October 2026.
Does the Recycle Bin count toward SharePoint storage?
Yes. The site Recycle Bin counts toward the total storage limit, and Microsoft recommends emptying it regularly.
What happens when SharePoint storage is full?
If a tenant keeps operating above its limit, it risks read-only mode, where users may be unable to add or change content.
Does OneDrive count toward my SharePoint storage limit?
No. The OneDrive created for each licensed user isn't included in your SharePoint storage.
What is the largest file you can upload to SharePoint?
250 GB per file, with a 400-character limit on the total path including the file name.
What is Confirm purchase in SharePoint?
After buying storage or licences, Confirm purchase can lift read-only mode for up to 14 days while capacity is applied. It can only be used once in a 365-day period.
