The IRS has released the applicable federal rates (AFRs) for April 2026 in Revenue Ruling 2026-07. These rates are used for a variety of federal income, estate, and gift tax purposes, including minimum interest on loans.
Applicable federal rates are determined under Section 1274(d) of the Internal Revenue Code and are published monthly by the IRS.
Applicable Federal Rates (AFR) for April 2026
| Term | Annual | Semiannual | Quarterly | Monthly |
|---|---|---|---|---|
| Short-term (3 years or less) |
3.59% | 3.56% | 3.54% | 3.53% |
| Mid-term (Over 3 years but not over 9 years) |
3.82% | 3.78% | 3.76% | 3.75% |
| Long-term (Over 9 years) |
4.62% | 4.57% | 4.54% | 4.53% |
The Section 382 long-term tax-exempt rate used to compute the loss carryforward limits for corporation ownership changes during April 2026 is 3.58%.
The Section 7520 rate for April 2026 is 4.6%.
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.
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