App Store Small Business Program: How to Pay 15%, Not 30%

Apple's 30% commission is the number everyone quotes, but most App Store developers don't have to pay it. The App Store Small Business Program cuts the commission on paid apps and In-App Purchases to 15% for developers who earned up to 1 million USD in proceeds in the prior calendar year. There's one catch that costs people money: as @sarunw put it, "nobody enrolls you for it." This guide covers who qualifies, how to enroll, what counts toward the limit, what happens if you pass it, and how it fits an indie launch on iPhone Duo.

Everything here comes from Apple's Small Business Program page and the current Paid Apps agreement, Schedule 2 to the Apple Developer Program License Agreement (version 127, dated October 13, 2026). Terms change, so check both before you rely on a number. This is a summary, not legal or tax advice.

What is the App Store Small Business Program?

It's a reduced commission tier Apple announced in late 2020. Apple's page describes "a reduced commission rate of 15% on paid apps and Apple In-App Purchases." Schedule 2 says the same: for developers "who have qualified and been approved by Apple," Apple takes 15% of the price instead of the standard 30%.

The rate covers sales of your apps and In-App Purchases in the regions listed in Schedule 2's Exhibit B. Like the standard rate, the commission is calculated on prices net of the taxes Apple collects.

The word that matters in that sentence is "approved." Qualifying isn't enough. Until you enroll and Apple approves you, every sale is charged the standard rate.

Who qualifies for the 15% commission?

Apple's rule has three parts:

• Prior year. You and your Associated Developer Accounts earned no more than 1 million USD in total proceeds during the 12 fiscal months in the previous calendar year.
• Current year. You've also earned no more than 1 million USD so far this year.
• Good standing. You and your associated accounts are members of the Apple Developer Program in good standing.

New developers qualify as well. Apple's page says developers "new to the App Store" can join, so you can enroll before your first sale.

Associated Developer Accounts are where larger companies fall out. An associated account is any Apple Developer Program account you own or control, or one that owns or controls yours. Apple lists four tests: you have majority (over 50%) ownership of another account, another account has majority ownership of yours, you have ultimate decision-making authority over another account, or another account has that authority over yours. Their proceeds count together against the same 1 million USD limit.

How do I enroll in the Small Business Program?

Use the Enroll now button on Apple's program page, which asks you to sign in. Apple lists three requirements:

1. Be the Account Holder of your Apple Developer Program membership. Apple names that role specifically, so if someone else on your team holds it, they need to enroll.
2. Review and accept the latest Paid Apps agreement (Schedule 2) in App Store Connect.
3. If you have any, list all of your Associated Developer Accounts.

For each associated account, Apple asks for the individual or organization name, the Team ID, the Account Holder's email address, and a description of the relationship. Schedule 2 also requires you to update this information if a relationship changes.

Timing is the part to plan for. Schedule 2 says Apple decides eligibility within 15 days of the end of each fiscal calendar month. Apple's page adds that your proceeds are adjusted 15 days after the end of the fiscal month in which you're approved. Its example: approval on February 10, 2022 meant adjusted proceeds from March 14, 2022. Apple's fiscal months don't line up exactly with calendar months, so expect several weeks between applying and paying 15%.

Enrollment has one newer benefit. Apple's page says members with fewer than two million first-time App Store downloads can use Apple Foundation Models on Private Cloud Compute with no cloud API cost, once the Private Cloud Compute entitlement is assigned to their account.

What counts as proceeds toward the $1 million limit?

The limit is on proceeds, not on what customers pay. Apple defines proceeds as "sales net of Apple's commission and certain taxes and adjustments," converted to US dollars. At a 15% commission, 1 million USD in proceeds works out to roughly 1.18 million USD in sales before commission, net of taxes.

Apple's page explains how to estimate your number:

• If you're paid in USD, add up the App Store payments deposited to your bank in the prior calendar year, then apply taxes and adjustments from Payments and Financial Reports in App Store Connect.
• If you're paid in another currency, convert each payment to USD using a public exchange rate for the end of each month in Apple's fiscal calendar, then apply the same taxes and adjustments.
• Add every associated account's proceeds to the total.

App transfers count for both sides. When an app moves between accounts, Schedule 2 includes its proceeds for that calendar year in the total of every account that sent or received it, including each party when an app is transferred more than once.

Don't try to stay under the limit by splitting work across accounts. Schedule 2 says Apple can disqualify developers who provide false information or create multiple accounts "to improperly benefit" from the program, and can withhold payments for violations.

What happens if I make more than $1 million?

You don't lose the program forever, but you do lose the rate for the rest of the year. Schedule 2: once total proceeds exceed 1 million USD in the current calendar year, "You will be charged the standard commission rate" for "the remainder of the calendar year." Sales before you crossed the line keep the 15% rate.

Recovery works on a one-year delay. If your proceeds in a later calendar year are no more than 1 million USD, Schedule 2 says you "may re-qualify" in the following calendar year. @sarunw summed it up: passing the limit moves future sales that year to the standard rate, and falling back under it means you qualify for 15% again the year after. Apple doesn't say whether that requires a new enrollment, so check your agreement status in App Store Connect when the new year starts.

How do the 15% rates compare across the App Store?

Subscriptions confuse this, because the standard terms already have a 15% rate. Under Schedule 2, renewals of auto-renewable subscriptions drop to 15% once a customer has accrued more than one year of paid service in a subscription group. Small Business Program members pay 15% from the first sale, so for them a long-term subscriber costs the same as a new one.

The China rates come from Apple's March 12, 2026 news post. The EU has separate alternative terms; Apple's program page says that developers on those terms in the Small Business Program, and subscriptions after their first year, get "a further reduced commission of 10%." If you sell in the EU, read Apple's EU terms before you compare numbers.

How does the Small Business Program affect an iPhone Duo launch?

If you're an independent developer adapting an app or game for iPhone Duo, this program likely applies to you. Three things are worth knowing before launch.

Enroll before you launch, not after. Because the reduced rate starts after approval and a fiscal-month delay, a launch-week spike sold before approval is charged 30%. If your iPhone Duo update or new game ships next month, enroll now.

The rate changes your margin, not your price page. Here is the difference on a sale whose price net of taxes is 5.00 USD: at 30%, Apple keeps 1.50 and you receive 3.50. At 15%, Apple keeps 0.75 and you receive 4.25, about 21% more per sale. Apple's program doesn't tell you what to charge; whether you keep your price or lower it is your call.

It doesn't help App Store optimization. Apple's program page covers commission and eligibility only. It says nothing about search ranking, featuring or product page placement. Your iPhone Duo listing still depends on your metadata and screenshots, and @sarunw notes that from April 2027 every app will also need iPhone Duo screenshots. Our guide to App Store screenshot sizes for iPhone Duo covers those slots.

The rest of the launch is product work: building with the iOS 27.1 SDK, handling the vertical bar and testing every pose. Our prepare your app for iPhone Duo checklist lists it in order.

Key takeaways

• The Small Business Program cuts Apple's commission on paid apps and In-App Purchases from 30% to 15% if your prior-year proceeds were no more than 1 million USD. New developers qualify.
• It's never automatic. The Account Holder enrolls, accepts the latest Paid Apps agreement and lists any Associated Developer Accounts.
• The limit is on proceeds in USD, summed across associated accounts and transferred apps.
• Pass 1 million USD and the rest of that year's sales pay the standard rate; fall back under it and you can requalify the year after.
• Enroll weeks before an iPhone Duo launch, since the rate starts after approval. It changes your proceeds, not your search ranking.

When your iPhone Duo version is ready, see the apps already making the most of the hinge in Built for the fold, and read about AppleDuo to learn how we pick the apps we feature.