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1Password vs. Bitwarden vs. LastPass: The SSO Tier Trap and the 2025 Settlement

Based on verified user data No sponsored findings No vendor spin

Explosive finding: LastPass's 2022 breach is not a closed chapter. In 2025, the company settled a US class action for $24.5 million and was fined by the UK's data protection regulator, affecting more than one million UK data subjects, three years after the original incident. Meanwhile, LastPass still caps SSO access at 3 apps unless you upgrade past its standard Business tier.

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Full report with pricing tables, hidden-cost breakdown, and decision framework.

1Password vs. Bitwarden vs. LastPass: The SSO Tier Trap and the 2025 Settlement

Market Position: Big Picture

1Password, Bitwarden, and LastPass are the three most widely deployed password managers for teams and businesses, and all three are credible, well-reviewed products. Bitwarden leads on price and transparency, the only one of the three that is open-source and offers a self-hosted deployment path. 1Password leads on polish and non-technical-user adoption, and is the default choice for organizations heavy on Apple devices. LastPass remains the most widely deployed by raw customer count, with the largest user review volume of the three, but it carries a distinct history: a 2022 breach whose consequences are still unfolding in 2025, and a business pricing structure that gates full SSO access behind its highest tier.

The finding that should change how any of the three gets evaluated: LastPass's 2022 breach was not resolved when the incident response ended. In 2025, three years later, LastPass settled a US class action lawsuit for $24.5 million over losses tied to stolen vault backups, and the UK's Information Commissioner's Office fined LastPass UK Ltd for failures affecting more than one million UK data subjects. Organizations still running LastPass, or evaluating it now, are inheriting a company mid-consequence, not one that closed the book in 2023.

Platform Ratings at a Glance

PlatformG2 RatingReviews (G2)Notable Distinction
Bitwarden4.6-4.7 / 5~960-1,800Ranked first in Enterprise User Satisfaction on the G2 Enterprise Grid for eleven consecutive quarters, per G2's comparison data.
1Password4.6 / 5~1,235-1,809Highest-rated for autofill reliability and non-technical adoption in independent testing.
LastPass4.4-4.5 / 5~1,962-2,084Largest review volume of the three, consistent with the longest market tenure and widest installed base.

The rating gap between LastPass and the other two is modest, but Users specifically flag renewal price increases and the free tier's single-device-type restriction as recurring complaints, both discussed below.

The LastPass Breach: Still Not Over in 2025

The underlying incident is well documented. In August 2022, an attacker compromised a LastPass engineer's corporate laptop and exfiltrated source code and an encrypted copy of the key protecting customer backups. In September 2022, the same attacker compromised a senior DevOps engineer's home computer, exploited through a vulnerability in third-party media software, and used a keystroke logger to obtain credentials granting access to LastPass's cloud storage. Between September and October 2022, the attacker copied backups of customer vault data, including unencrypted metadata such as website URLs, company names, billing addresses, and IP addresses, alongside encrypted fields such as usernames and passwords. LastPass has stated the encrypted fields remain protected by its zero-knowledge architecture and cannot be decrypted without each user's master password.

What changes the risk calculus for a 2026 buyer is what has happened since. In 2025, LastPass settled a US class action lawsuit for $24.5 million covering losses tied to the stolen vault backups. Separately, the UK's Information Commissioner's Office issued a monetary penalty against LastPass UK Ltd in November 2025 for failures to implement appropriate technical and organizational measures, affecting more than one million UK data subjects. Neither of these is a 2022 story. Both are 2025 consequences of a breach that took nearly three years to fully resolve through litigation and regulatory review.

Users who followed LastPass's guidance, a strong, unique master password not reused elsewhere, remained protected throughout: LastPass's zero-knowledge encryption means the stolen vault contents are not decryptable without that password. The exposure was real for anyone with a weak or reused master password, and the metadata theft (which sites each user accessed) itself created a durable phishing and targeting risk independent of whether any vault was ever cracked.

The SSO Tier Trap: A Pattern Across All Three, Sharpest at LastPass

Single sign-on and SCIM auto-provisioning, the features that let a company's identity provider control who has access to the password vault at all, are gated behind the top-priced tier at all three vendors. This is not unique to any one of them, but the severity differs meaningfully.

Bitwarden's Teams tier (roughly $3-$4/user/month) does not include SSO. Enterprise (roughly $5-$6/user/month) adds SAML 2.0 and OpenID Connect support along with SCIM 2.0 auto-provisioning, compatible with Entra ID, Okta, Google Workspace, Duo, JumpCloud, and Ping. The gate exists, but it is a clean two-tier structure.

1Password's Business tier (roughly $7.99-8.99/user/month) includes SSO integration as a standard feature, the least gated structure of the three, though enterprise-scale deployments above roughly 250 users typically move to custom pricing regardless.

LastPass has the most granular, and most gated, structure. Teams (roughly $4-$4.25/user/month) includes no SSO at all. Business (roughly $7/user/month) adds SSO, but capped at 3 connected apps, along with SCIM provisioning. Organizations that need SSO across more than 3 applications, a routine requirement for any company running more than a handful of core business tools, must move to a Business Max or add-on tier priced around $8.84-$9/user/month for unlimited SSO apps. A 30-person team on the capped Business tier pays roughly $2,714/year; the same team on the uncapped tier pays roughly $3,182/year, a jump that exists purely to remove an artificial app-count ceiling, not for any additional security capability.

The Other Pricing Story: 1Password's First Increase in Years

Effective March 27, 2026, 1Password raised its individual and family subscription prices by as much as 33%, its first increase in several years according to the company's notice to customers. The individual plan rose from $3.99 to $4.99/month ($35.88 to $47.88/year), and the family plan rose from $6.95 to $7.99/month ($59.88 to $71.88/year). 1Password attributed the increase to continued investment in security and features including phishing protection and faster device setup. The increase applies to individual and family plans specifically; published Business tier pricing was not part of this announced change.

Pricing (July 2026)

PlatformTeam Tier (No/Limited SSO)Top Tier (Full SSO)Self-Host Option
Bitwarden$3-$4/user/month (Teams)$5-$6/user/month (Enterprise)Yes, only vendor of the three
1Password$19.95/month flat, up to 10 users (Teams)$7.99-$8.99/user/month (Business)No
LastPass$4-$4.25/user/month (Teams, no SSO)$8.84-$9/user/month (Business Max, unlimited SSO)No

All figures are third-party pricing-tracker estimates and vendor list prices, not negotiated contract figures. Confirm current rates before budgeting.

Costs the Pricing Table Misses

TCO Comparison: 25-Person Company, Full SSO Requirement, 3 Years

Modeled scenario: 25 employees, SSO required across more than 3 connected applications, using the tier each vendor requires to meet that requirement at the pricing published above.

PlatformRequired TierMonthly Rate3-Year Total
BitwardenEnterprise$5.50/user (midpoint)$4,950
1PasswordBusiness$8.49/user (midpoint)$7,641
LastPassBusiness Max (uncapped SSO)$8.92/user (midpoint)$8,028

Bitwarden is the clear cost leader at this scale once full SSO is required, roughly 38% less than 1Password and 62% less than LastPass over three years. The LastPass figure also isolates the SSO-cap trap in dollar terms: staying on the capped Business tier would cost $6,300 over three years, meaning the jump to remove the artificial 3-app ceiling costs $1,728 over the contract, real money spent solely to undo a limit the base tier didn't need to have in the first place.

The Decision Framework

Choose Bitwarden if: Budget and code-level transparency matter most. It is the only self-hostable option of the three, has the cleanest two-tier SSO structure, and User data shows it leading Enterprise User Satisfaction for eleven consecutive quarters.

Choose 1Password if: Non-technical adoption and polish matter most, particularly in Apple-heavy environments, and your organization is small enough for flat Teams pricing or large enough to negotiate custom Business terms.

Choose LastPass if: You have specific institutional reasons to stay (existing deployment, specific integration dependencies) and have already enforced mandatory master password rotation and MFA fleet-wide. Confirm the SSO app-count cap against your actual application count before signing, and budget for the uncapped tier if you run more than 3 SSO-connected apps.

Everyone: Enforce strong, unique master passwords regardless of vendor. LastPass's 2022 breach caused real harm specifically where master passwords were weak or reused; the zero-knowledge architecture that protected everyone else is a feature all three vendors share, not a LastPass-specific advantage.

The Bottom Line

Bitwarden and 1Password are both credible, well-reviewed choices with clean, comparatively minor tier-gating patterns. LastPass remains a technically capable product with the largest installed base of the three, but it carries two distinct 2026 realities that a sticker-price comparison won't show: a breach whose legal and regulatory consequences were still landing in 2025, three years after the incident, and a pricing structure where a routine SSO requirement, more than 3 connected apps, forces an upgrade past the plan most buyers would otherwise choose.