How to delete the (trail/free)tenant, License-based subscriptions are blocking it.

Question

How to delete the tenant created. I used the "Dynamics 365 Sales Premium" using trail/free account. I followed the steps to create a tenant and used the trail account. Now I want to delete the tenant account. How can I do it?

• I have cancel the "Dynamics 365 Sales Premium" subscription from admin.cloud.microsoft site > Billing > All products. Current status is showing "Disabled". screenshot attached
• I tried to delete the tenant from portal.azure.com site by navigating to "Manage Microsoft Entra ID" and then clicking on the "Manage tenants" Selected the tenant that I want to delete which is default one for my case. Refer to the screenshot attached. It says "License-based subscriptions are blocking me to delete this tenant.
• Can anyone suggest what should I do so avoid paying charges.

Answer 1

Dear @Jayjit Gosavi,

Welcome to Microsoft Q&A. 

Thank you for taking the time to describe the issue in detail and for sharing the screenshots. That really helps clarify the situation.

Based on your description and the images you provided, you have already correctly canceled the Dynamics 365 Sales Premium trial, and its status is now Disabled in the Microsoft 365 admin center. This confirms that the trial subscription itself is no longer active and will not generate any charges.

The message you see in the Azure portal stating that “License‑based subscriptions are blocking tenant deletion” is expected behavior. Even when a trial subscription is set to Disabled, it is still considered a license‑based product until Microsoft’s backend systems fully complete the cleanup process. During this stage, Microsoft Entra ID intentionally prevents tenant deletion.

At this point, there is no additional action required from your side in the admin portals. You do not need to remove users, apps, MFA settings, or Microsoft Entra ID Free manually, and there is no risk of being charged as long as the trial remains canceled.
You can refer to this article: Delete a tenant in Microsoft Entra ID

Now, you have two supported options:

1/ Wait for backend cleanup to complete automatically.

After the trial cleanup finishes, the “License‑based subscriptions” warning will clear, and the Delete tenant option will become available.

2/ Raise a support ticket with Microsoft Support if you prefer not to wait.

When creating the ticket, select Billing/Subscription/Tenant deletion blocked, and mention that this is a Dynamics 365 trial tenant with the subscription already canceled. The backend support team can confirm the cleanup status and, if needed, manually unblock tenant deletion.

You can raise support ticket from Microsoft 365 Admin Center>Support>Help & Support.  

For reference:  Get support | Microsoft Docs   

I hope this explanation reassures you that everything is currently in the correct state and that you will not be charged. Thank you again for providing clear details, and I hope this information helps you move forward smoothly.

If this answers your question, please consider marking it as Accepted, as it may help other users facing the same situation.

If you need further assistance, please don’t hesitate to reach out again. I’ll do my best to support you however I can.  

Looking forward to hearing back from you with any updates or additional details. 

Warm regards, 

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Answer 2

To delete the tenant, the Dynamics 365 Sales Premium trial must reach the Deprovisioned/Deleted state. A Disabled license-based subscription still blocks tenant deletion.

Use these steps and options:

1. Confirm the subscription is canceled
   In the Microsoft 365 admin center, go to Billing > Your products and make sure the Dynamics 365 Sales Premium trial shows as Canceled/Disabled and recurring billing is off. This ensures no further charges.
2. Wait for the lifecycle to complete
   For license-based Microsoft 365/Dynamics 365 subscriptions, the lifecycle is:
   • Active → Expired → Disabled → Deprovisioned.
   • Data and licenses are removed only in the Deprovisioned (or Deleted for some trials) state.
   An Expired/Canceled subscription in Disabled state still blocks Microsoft Entra tenant deletion. The tenant can be deleted only after the subscription reaches Deprovisioned/Deleted.
3. Delete the disabled subscription if the billing account type allows it
   • If the billing account type is MOSA, open Microsoft 365 admin center > Billing > Your products, select the Disabled subscription, and use Delete subscription. After deletion, wait for the backend to update, then retry tenant deletion in Microsoft Entra ID.
   • If the billing account type is MCA, disabled subscriptions are removed automatically at the end of the term and cannot be manually deleted. In that case, wait until the term ends and the subscription is fully deleted, then delete the tenant.
4. Microsoft Entra ID Free product
   For MCA billing accounts, a product called Microsoft Entra ID Free is automatically added and cannot be canceled. This product itself does not prevent tenant deletion; only other license-based subscriptions in non‑Deprovisioned state do.
5. After subscription is Deprovisioned/Deleted
   When the Dynamics 365 subscription shows as Deprovisioned or Deleted in the admin center and the License-based subscriptions check in the Entra “Delete tenant” page is green, run the tenant deletion again from Microsoft Entra admin center > Manage tenants > Delete tenant.

If the subscription remains disabled and cannot be deleted even though the billing account type should allow it, contact Microsoft support from the Microsoft 365 admin center and ask them to remove the disabled trial so the tenant can be deleted.

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References:

• Delete a tenant in Microsoft Entra ID
• Close your Microsoft business account
• Cancel your subscription in the Microsoft 365 admin center
• Protect tenants and subscriptions from abuse and fraud attacks