Apple Small Business Program: How to Cut Your App Store Commission from 30% to 15%

What Is the Apple Small Business Program and Why It Was Created

The Apple Small Business Program launched on January 1, 2021. Since the App Store opened in 2010, Apple had charged a 30% commission on every sale — widely dubbed the "Apple tax." Years of antitrust scrutiny and the very public dispute with Epic Games in 2020 pushed Apple to act.

The result: developers earning less than $1 million per year can pay half the standard rate — 15% instead of 30%. Since 2021, the program has remained stable with no material changes to its terms.

You don't need to contact Apple directly. Enrollment is handled entirely through your Apple Developer account — the same tool every developer already uses.

Who Qualifies for the Apple Small Business Program

The main requirement: proceeds in the previous calendar year must not exceed $1 million across all accounts, including any Associated Developer Accounts. If you manage multiple accounts, their proceeds are combined.

• New developers automatically receive the 15% rate from day one — until they cross the threshold.
• If you exceed $1 million mid-year, the standard 30% rate applies to all subsequent sales for the remainder of that year.
• The following year, if your proceeds fall back below $1 million, you can re-enroll and return to 15%.

For most small teams, the program effectively means a permanent 15% rate — they never come close to the $1 million threshold.

Proceeds ≠ Revenue: The Key Nuance of the Threshold

The $1 million threshold is calculated on proceeds — your net earnings after Apple's commission and taxes are deducted — not on gross revenue. This distinction matters.

At the standard 30% rate, roughly $1.4 million in gross revenue corresponds to $1 million in proceeds. In other words, if your apps generated $1.3 million in customer purchases, you're likely still within the program.

Subscriptions: The Detail Most Developers Overlook

Apple already reduces the commission on subscriptions after the first year: without the program, the rate is 30% in year one → 15% from year two. This is built into standard App Store terms.

The Small Business Program changes that calculation: 15% from day one for every subscriber, regardless of how long they've been subscribed.

The biggest benefit of the program is concentrated in "first-year" subscribers. If you have strong retention and most of your users are already past year one, the difference will be smaller. If you're actively growing and acquiring new subscribers, the benefit is at its maximum.

How to Apply for the Apple Small Business Program

The entire process is online and takes just a few minutes:

1. Make sure you are the Account Holder in the Apple Developer Program — only this role can submit an enrollment request.
2. Accept the Paid Applications agreement (Schedule 2) in App Store Connect — enrollment is not possible without it.
3. List all Associated Developer Accounts if you have any — Apple factors in proceeds from all linked accounts.
4. Visit the program page on Apple's website, click "Enroll," and confirm your sign-in — Apple will pre-fill your account details automatically.

What Happens If You Cross the $1 Million Threshold

If your proceeds exceed $1 million during the year, the 30% rate returns for all subsequent sales in that year. Apple sends no warning — you'll discover this from your payout report.

The following year, if your proceeds fall back below the threshold, you can re-apply and return to 15%. The program doesn't penalize you permanently — it simply doesn't apply in years when your business has outgrown the "small" category.

In practice, for the vast majority of developers who have never come close to $1 million, the program works indefinitely and invisibly.

The 2026 Context: Why 30% Is No Longer the Only Number

While the Small Business Program was once the only way to legally pay less than 30%, the landscape has started shifting in several regions simultaneously:

• China: From March 15, 2026, the standard rate is 25%, with 12% for Small Business Program participants.
• Japan and Brazil: Apple split its commission into two components — the commission itself plus a separate payment processing fee — enabling developers to use third-party payment processors.
• EU: The Digital Markets Act forced Apple to offer alternative terms for European developers.
• US (Epic case): Courts required Apple to allow external payment links. Apple's proposed 27% commission on external purchases was later deemed to have been set in bad faith, and as of mid-2026, Apple cannot charge commissions on external purchases in US apps until a "reasonable" rate is established.

Against this backdrop, the Small Business Program remains the simplest and most predictable way to reduce your commission — no geopolitical dependencies, no legal exposure, no need to rebuild your payment infrastructure.

Is It Worth Enrolling? A Practical Conclusion

If your proceeds are under $1 million per year and you have (or plan to have) subscriptions — enroll. There are no entry costs and no real downsides.

That 15% difference on every sale can be the line between breakeven and profit for many apps. For subscription apps, doubling your net margin on every new subscriber fundamentally changes your unit economics.

Check your proceeds in App Store Connect and submit the application. It takes 10 minutes.