The IRS has released (Rev. Rul. 2026-06) the Applicable Federal Rates under Sec. 1274(d) of the Internal Revenue Code for March 2026. These rates are used for various tax purposes, including minimum rates for loans.
There are rates for "short-term," "mid-term," and "long-term" instruments. Short-term covers demand loans and instruments of up to three years. Mid-term covers loans and instruments of over three years and up to nine years. Long-term covers loans and instruments with maturities longer than nine years.
| Term | Annual | Semiannual | Quarterly | Monthly |
|---|---|---|---|---|
| Short-term AFR | 3.59% | 3.56% | 3.54% | 3.53% |
| Mid-term AFR | 3.93% | 3.89% | 3.87% | 3.86% |
| Long-term AFR | 4.72% | 4.67% | 4.64% | 4.63% |
The Section 382 long-term tax-exempt rate used to compute the loss carryforward limits for corporation ownership changes during March 2026 is 3.58%.
The Section 7520 rate for March 2026 is 4.80%. Higher Section 7520 rates benefit Qualified Personal Residence Trusts (QPRTs) and Charitable Remainder Annuity Trusts (CRATs). Lower Section 7520 rates benefit Grantor Retained Annuity Trusts (GRATs), Charitable Lead Annuity Trusts (CLATs) and Private Annuities.
Related: Eide Bailly Mergers & Acquisition services; Eide Bailly Wealth Transition Services
Historical AFRs are available here.
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