cursor teams splits into standard ($40) and premium ($120) seats — two usage pools, 5x the limit

Cursor restructured its Teams plan in June 2026, with the changes rolling to renewing customers on billing cycles starting July 1. the old single-tier Teams seat is gone. there are now two: Standard at $40/user/month and Premium at $120/user/month.

what changed

the short version: Cursor separated heavy agent users from regular users and priced them differently. Standard seats get the baseline Teams usage allowance. Premium seats get 5x that allowance for $3x the price. the theory is that teams can put agent-heavy developers on Premium seats and keep the rest on Standard, instead of everyone paying for headroom most people don't need.

usage is now split into two separate pools per seat:

• first-party models pool— for Auto (Cursor's routing layer) and Composer 2.5
• third-party API pool — for calls to OpenAI, Anthropic, Google, and other external models billed through your Cursor account

the two pools don't share limits. burning through your first-party allowance doesn't drain your third-party pool, and vice versa.

pricing table

monthly: Standard $40/seat, Premium $120/seat. annual: Standard $32/seat/month, Premium $96/seat/month.

billing is per active paid seat, not pre-allocated. you can add, remove, upgrade, or downgrade users at any time; billing adjusts prorated based on seat type. no need to buy blocks of seats in advance.

rollout

new customers saw the new structure immediately when the announcement landed in June. renewing customers transitioned on billing cycles starting July 1, 2026.

honest take

the split makes sense for teams with mixed usage patterns. if you have three developers who run Claude Code-style agent loops all day and seven who use Cursor for autocomplete and the occasional chat, paying $120 for the three and $40 for the seven costs $600/month — vs. $800 if everyone was on a $80 flat Teams tier (Cursor's prior pricing). the math favors the new model for mixed teams.

for solo teams where everyone is a heavy agent user, the Premium seat at $120 is a 3x increase over the old Teams price. the question is whether you were already going over limits and eating on-demand charges under the old model — if yes, the new pricing is more predictable even if higher. if you were well inside the old limits, this is a price increase.

the separate first-party and third-party pools are the less-covered change but arguably the more important one for teams running multi-model workflows. knowing which pool your cost center is in makes it easier to attribute spend and optimize.