Internal Revenue Bulletin — Rulings & Guidance
Rev. Rul. 2026-3 — Federal rates; adjusted federal rates; adjusted federal long-term rate, and the long-term tax exempt rate.
This revenue ruling provides various prescribed rates for federal income tax purposes for February 2026 (the current month). Table 1 contains the short-term, mid-term, and long-term applicable federal rates (AFR) for the current month for purposes of section 1274(d) of the Internal Revenue Code. Table 2 contains the short-term, mid-term, and long-term adjusted applicable federal rates (adjusted AFR) for the current month for purposes of section 1288(b). Table 3 sets forth the adjusted federal long-term rate and the long-term tax-exempt rate described in section 382(f). Table 4 contains the appropriate percentages for determining the low-income housing credit described in section 42(b)(1) for buildings placed in service during the current month. However, under section 42(b)(2), the applicable percentage for non-federally subsidized new buildings placed in service after July 30, 2008, shall not be less than 9%. Finally, Table 5 contains the federal rate for determining the present value of an annuity, an interest for life or for a term of years, or a remainder or a reversionary interest for purposes of section 7520.
REV. RUL. 2026-3 TABLE 1 Applicable Federal Rates (AFR) for February 2026 Period for Compounding
| Annual | Semiannual | Quarterly | Monthly | |
|---|---|---|---|---|
| Short-term | ||||
| AFR | 3.56% | 3.53% | 3.51% | 3.50% |
| 110% AFR | 3.92% | 3.88% | 3.86% | 3.85% |
| 120% AFR | 4.28% | 4.24% | 4.22% | 4.20% |
| 130% AFR | 4.64% | 4.59% | 4.56% | 4.55% |
| Mid-term | ||||
| AFR | 3.86% | 3.82% | 3.80% | 3.79% |
| 110% AFR | 4.24% | 4.20% | 4.18% | 4.16% |
| 120% AFR | 4.63% | 4.58% | 4.55% | 4.54% |
| 130% AFR | 5.03% | 4.97% | 4.94% | 4.92% |
| 150% AFR | 5.81% | 5.73% | 5.69% | 5.66% |
| 175% AFR | 6.80% | 6.69% | 6.63% | 6.60% |
| Long-term | ||||
| AFR | 4.70% | 4.65% | 4.62% | 4.61% |
| 110% AFR | 5.19% | 5.12% | 5.09% | 5.07% |
| 120% AFR | 5.66% | 5.58% | 5.54% | 5.52% |
| 130% AFR | 6.14% | 6.05% | 6.00% | 5.98% |
REV. RUL. 2026-3 TABLE 2 Adjusted AFR for February 2026 Period for Compounding
| Annual | Semiannual | Quarterly | Monthly | |
|---|---|---|---|---|
| Short-term adjusted AFR | 2.70% | 2.68% | 2.67% | 2.67% |
| Mid-term adjusted AFR | 2.92% | 2.90% | 2.89% | 2.88% |
| Long-term adjusted AFR | 3.56% | 3.53% | 3.51% | 3.50% |
REV. RUL. 2026-3 TABLE 3 Rates Under Section 382 for February 2026
| Adjusted federal long-term rate for the current month | 3.56% |
| Long-term tax-exempt rate for ownership changes during the current month (the highest of the adjusted federal long-term rates for the current month and the prior two months.) | 3.56% |
REV. RUL. 2026-3 TABLE 4 Appropriate Percentages Under Section 42(b)(1) for February 2026
| Note: Under section 42(b)(2), the applicable percentage for non-federally subsidized new buildings placed in service after July 30, 2008, shall not be less than 9%. | |
| Appropriate percentage for the 70% present value low-income housing credit | 7.99% |
| Appropriate percentage for the 30% present value low-income housing credit | 3.43% |
Section 42.—Low-Income Housing Credit
The applicable federal short-term, mid-term, and long-term rates are set forth for the month of February 2026. See Rev. Rul. 2026-3, page 485.
Section 280G.—Golden Parachute Payments
The applicable federal short-term, mid-term, and long-term rates are set forth for the month of February 2026. See Rev. Rul. 2026-3, page 485.
Section 382.—Limitation on Net Operating Loss Carryforwards and Certain Built-In Losses Following Ownership Change
The adjusted applicable federal long-term rate is set forth for the month of February 2026. See Rev. Rul. 2026-3, page 485.
Section 467.—Certain Payments for the Use of Property or Services
The applicable federal short-term, mid-term, and long-term rates are set forth for the month of February 2026. See Rev. Rul. 2026-3, page 485.
Section 468.—Special Rules for Mining and Solid Waste Reclamation and Closing Costs
The applicable federal short-term rates are set forth for the month of February 2026. See Rev. Rul. 2026-3, page 485.
Section 482.—Allocation of Income and Deductions Among Taxpayers
The applicable federal short-term, mid-term, and long-term rates are set forth for the month of February 2026. See Rev. Rul. 2026-3, page 485.
Section 483.—Interest on Certain Deferred Payments
The applicable federal short-term, mid-term, and long-term rates are set forth for the month of February 2026. See Rev. Rul. 2026-3, page 485.
Section 1288.—Treatment of Original Issue Discount on Tax-Exempt Obligations
The adjusted applicable federal short-term, mid-term, and long-term rates are set forth for the month of February 2026. See Rev. Rul. 2026-3, page 485.
Section 7520.—Valuation Tables
The applicable federal mid-term rates are set forth for the month of February 2026. See Rev. Rul. 2026-3, page 485.
Section 7872.—Treatment of Loans With Below-Market Interest Rates
The applicable federal short-term, mid-term, and long-term rates are set forth for the month of February 2026. See Rev. Rul. 2026-3, page 485.
Source: official text