Money ยท definition

App Store Small Business Program: who qualifies, how to enroll, and how the 15% rate works in 2026

The $1 million threshold and what counts toward it, the enrollment steps, when the reduced rate starts, what happens when you cross the line, how the program combines with the year-two subscription rate, and the EU rates from October 1, 2026. Every fact from Apple's own pages, dated.

Razvan Popa, runs four live iOS apps · · 

Short answer: the App Store Small Business Program cuts Apple's commission on paid apps and In-App Purchases from 30% to 15%. You qualify if you and any associated developer accounts earned no more than $1 million in proceeds in the prior calendar year and stay under it in the current one; developers new to the App Store qualify too. It isn't automatic: the Account Holder enrolls. The reduced rate applies from 15 days after the end of the fiscal month in which Apple approves you. Cross $1 million during a year and future sales go back to the standard rate; after a calendar year back under it, you can requalify the following year. Members get 85% on subscriptions from the first day, so the year-two rate adds nothing while you're in. On EU storefronts, Apple's terms effective October 1, 2026 keep members at 15% for In-App Purchase, against 26% standard.

Google's autocomplete for the program's name shows what people get stuck on: enrollment, check status, how long, requirements. Apple answers most of it across four or five pages. This post puts those answers in one place, as of September 23, 2026, with the date of every rule that can change. For how the rate shows up in your payout next to VAT, fiscal months and currency, see Apple payout vs App Store proceeds vs RevenueCat revenue.

What the program is

Apple announced the program on November 18, 2020, it launched on January 1, 2021, and enrollment opened on December 3, 2020. Apple's program page describes it as "a reduced commission rate of 15% on paid apps and Apple In-App Purchases". The standard commission is 30% (26% on EU storefronts from October 1, 2026, covered below).

One newer benefit is listed on the same page as of September 2026: members whose apps each have fewer than two million first-time App Store downloads can use Apple Foundation Models running on Private Cloud Compute with no cloud API cost, once the Private Cloud Compute entitlement is assigned to their account. Apple's Private Cloud Compute page adds that if an app later passes two million first-time downloads, or the developer leaves the program, the developer is notified and has six months to move to another solution.

Who qualifies

Apple's wording: you and your Associated Developer Accounts "must have earned no more than 1 million USD in total proceeds" during the 12 fiscal months within the previous calendar year, and no more than 1 million USD during the current year. Developers new to the App Store qualify as well.

Proceeds, not revenue

The threshold is on proceeds, which Apple defines as "sales net of Apple's commission and certain taxes and adjustments", converted to US dollars. That makes the threshold more generous than it sounds. Illustrative arithmetic: with a 15% commission on US prices, where sales tax is added on top, $1 million in proceeds is about $1.18 million of customer spending. Where VAT is inside the price, the customer spending behind the same proceeds is higher still.

Apple's own method for estimating it, from the program FAQ: add up the App Store payments deposited into your bank account in the prior calendar year, then adjust for the taxes and adjustments shown in Payments and Financial Reports in App Store Connect. If your bank account isn't in US dollars, convert each payment with a public exchange rate for the end of the matching fiscal month in Apple's fiscal calendar. Add the proceeds of any associated accounts.

Associated developer accounts

An associated account is "an Apple Developer Program account that you own or control or an Apple Developer Program account that owns or controls your account". Apple lists four cases, in both directions: more than 50% ownership of the other account, or ultimate decision-making authority over it. The proceeds of all associated accounts count toward one $1 million total.

For each associated account, enrollment asks for the name, Team ID, Account Holder email address and a description of the relationship. A common indie case: an individual account from your first apps plus a company account you set up later and own outright. Those are associated, and their proceeds add up.

App transfers

Transfers are allowed, but when an app moves, its proceeds for the calendar year count toward every account that initiates or accepts the transfer. Buying an app mid-year brings that year's proceeds with it, and selling one doesn't remove them from your total.

How to enroll

  1. Be the Account Holder. Apple lists being the Account Holder of the Apple Developer Program account as the first requirement, so an Admin on the team can't do it for you.
  2. Accept the latest Paid Apps agreement (Schedule 2 to the Apple Developer Program License Agreement) in App Store Connect.
  3. List your associated developer accounts, if you have any, with the details above.
  4. Submit the form from the "Enroll now" link on the program page; it asks you to sign in with your developer account.

Apple doesn't publish a review time. In a long-running Developer Forums thread, an Apple reply says the review teams "will contact you as soon as your application review is complete" and asks applicants to make sure the latest paid agreement is accepted. Developers in the same thread, from 2021 to 2025, report anything from under a week to several months, and some never heard back. Those are anecdotes, not a service level. If a few weeks pass with nothing, the program page points to Apple Developer Support.

When the 15% rate starts

From the program FAQ: "Your proceeds will be adjusted fifteen (15) days after the end of the fiscal calendar month in which your enrollment is approved." Apple's example: an enrollment approved on February 10, 2022 had proceeds adjusted starting March 14, 2022.

Apple's fiscal months are four or five whole weeks, so depending on where in the fiscal month the approval lands, the new rate starts somewhere between about two and seven weeks later. The page gives a start date and says nothing about recalculating earlier sales, so plan on sales before that date staying at the standard rate. If you're about to launch your first paid product, enroll before launch; developers new to the App Store qualify from the start.

What happens if you cross $1 million

Apple's program page: "If a participating developer surpasses the 1 million USD threshold in the current calendar year, the standard commission rate will apply to future sales." The 2020 announcement put it as the standard rate applying "for the remainder of the year". The following year you don't qualify either, because eligibility looks at the prior calendar year. To come back, Apple says: "If a developer's proceeds fall below the 1 million USD threshold in a future calendar year, they can re-qualify for the 15% commission the year after."

Year (illustrative)ProceedsRate on new first-year sales
2026Crosses $1 million in October15% until then; standard rate on future sales after that
2027$900,000Standard all year, because 2026 was over $1 million
2028Under $1 millionEligible for 15% again, because 2027 was under

Apple's page doesn't say whether requalifying takes a fresh enrollment, so check the rate you're paid at (the method is further down) and ask Developer Support if it doesn't change.

How it combines with the year-two subscription rate

Apple's subscription help page: during a subscriber's first year of service you receive 70% of the price minus applicable taxes; after the subscriber accumulates one year of paid service in the same subscription group, you receive 85%. "Members of the App Store Small Business Program receive 85% starting on the first day."

Subscriber's first yearAfter one year of paid service
Not in the program30% commission (70% to you)15% commission (85% to you)
In the program15% commission (85% to you)15% commission (85% to you)

Two consequences follow from those rules:

  • While you're in the program, the year-two rate changes nothing. Every subscriber is already at 15%.
  • The day count still matters if you leave. Apple counts paid days per subscriber regardless of the program. If you cross $1 million, subscribers who already have a year of paid service stay at 15%, and newer ones pay the standard rate until they reach a year. Your effective rate after crossing depends on how many long-term subscribers you have.

The day count has its own rules, from the same page: paid days stop accumulating when a subscription expires; if the person resubscribes or the subscription is recovered within 60 days, the count continues, and after 60 days it starts over at the 70% rate. With billing grace period turned on, a subscription recovered within the grace period (6 or 16 days, depending on its duration) loses no days. In the Sales and Trends summary report, rows at the year-two rate carry "Rate After One Year" in the Proceeds Reason field (field reference).

The EU terms from October 1, 2026

Apple announced on August 18, 2026 that every developer distributing apps in the EU moves to a single set of business terms, effective October 1, 2026. Its EU terms page (updated August 18, 2026) lists these rates for EU storefronts:

How the sale happensStandardProgram members and subscriptions after year one
Apple In-App Purchase26%15%
Alternative payment processing inside the app20%10%
Link-out to an offer outside the app, such as a website (store services commission, only on sales within 7 days of the tap)15%10%
Apps distributed outside the App Store (Core Technology Commission)5%5% (no reduced rate listed)

The same reduced column also covers the Mini Apps Partner Program and the Video Partner Program. The older fees go away: the initial acquisition fee and the store services fee are eliminated, and the per-install Core Technology Fee is replaced by the 5% Core Technology Commission. The Alternative Terms Addendum and the StoreKit External Purchase Link Entitlement (EU) Addendum are phased out and superseded by Attachment 14 of the Developer Program License Agreement.

Timing has one condition. Apple's EU page says developers move to the unified terms by agreeing to the updated Apple Developer Program License Agreement, and their account is on the new terms "starting October 1, 2026, or the date they agree, whichever is later".

What this means for a program member selling through In-App Purchase: 15% before October 1 on Apple's standard terms, and 15% after. The changes that touch members are the new options, at 10% for alternative processing inside the app or for web purchases reached through a link (your payment provider's fees come on top). One stale spot to know about: as of September 23, 2026, the program page's own EU answer still describes a 10% rate "for developers on the alternative terms in the EU", the terms Apple is phasing out. The EU terms page is the newer source.

How to check your status

  1. The email. Per the Apple reply in the forums, the review team contacts you when the review is complete.
  2. The numbers, which settle it. In Sales and Trends, take the summary sales report and pick a US row for a one-time purchase or a first-year subscription (Proceeds Reason blank). On US rows, where sales tax is added on top of the price, Developer Proceeds divided by Customer Price comes to about 0.85 at the 15% rate and about 0.70 at 30%. Skip rows from VAT countries: Apple's field reference says Customer Price includes the taxes it collects and remits, which pushes the ratio down at either rate.
  3. The App Store Connect screens. We found no Apple help page that documents a status screen for the program. Some third-party guides point to the agreements area of App Store Connect; if you don't see it there, the ratio above is the check that can't mislead you, and Developer Support can confirm.

Run the ratio check once after enrollment, once in January of every year, and after any year you get close to $1 million.

Where FolioKit fits: FolioKit's P&L works from Apple's actual monthly proceeds, pulled from App Store Connect's financial reports, per app or across all your apps, minus your costs. Whatever commission applied (program or not, EU or elsewhere, year one or year two) is already inside those proceeds, so there's no rate to type in or keep up to date. Dashboard guide.

FAQ

Who qualifies for the App Store Small Business Program?

Developers whose proceeds, together with any associated developer accounts, were no more than $1 million in the previous calendar year and stay under $1 million in the current one, plus developers new to the App Store.

Is the Small Business Program automatic?

No. The Account Holder enrolls, with the latest Paid Apps agreement accepted and any associated accounts listed. Until then, the standard commission applies.

When does the 15% rate start after enrolling?

Fifteen days after the end of the fiscal month in which Apple approves the enrollment, which works out to roughly two to seven weeks after approval.

What happens if I earn more than $1 million in proceeds?

Future sales that year pay the standard rate, and so do the next year's. After a calendar year under $1 million, you can requalify the year after.

Do subscriptions get 15% without the Small Business Program?

Yes, once a subscriber has a year of paid service in the same subscription group. Program members get 15% from the first day.

What are the EU App Store commission rates for small developers from October 2026?

From October 1, 2026: 15% for program members on In-App Purchase (26% standard), 10% for alternative in-app processing (20%), and 10% on link-out sales within 7 days of the tap (15%).

Sources

FolioKit is analytics for indie iOS developers: behavior, RevenueCat revenue and Apple's actual proceeds in one place, across every app you run.

Start free