Federal Tax Day - Current, I.5, Applicable Federal Rates for September 2026 Released (Rev. Rul. 2026-17), (Aug 24, 2026)

The IRS has released the applicable federal interest rates for September 2026. The AFRs are based on the average yield on outstanding marketable obligations of the United States government.

Annual Federal Interest for September 2026

The annual rates are:

• Short-term rate is 4.18 percent.

• Mid-term rate is 4.49 percent.

• Long-term rate is 5.12 percent.

Semiannual Rates

The semiannual rates are:

• Short-term rate is 4.14 percent.

• Mid-term rate is 4.44 percent.

• Long-term rate is 5.06 percent.

Quarterly Rates

The quarterly interest rates are:

• Short-term rate is 4.12 percent.

• Mid-term rate is 4.42 percent.

• Long-term rate is 5.03 percent.

Monthly Rates

The monthly interest rates are:

• Short-term rate is 4.10 percent.

• Mid-term rate is 4.40 percent.

• Long-term rate is 5.01 percent.

Code Sec. 1288(b) Rates

The Code Sec. 1288(b) interest rates, when using annual compounding, are:

• Short-term rate is 3.16 percent.

• Mid-term rate is 3.40 percent.

• Long-term rate is 3.88 percent.

Additionally, the Code Sec. 382 adjusted federal long-term rate is 3.88 percent and the long-term tax-exempt rate is 3.88 percent

Code Sec 42(b)(1) Percentage

The appropriate interest rate for the low-income housing credit is:

• 8.12 percent for the 70-percent present-value, low-income housing credit, and

• 3.48 percent for the 30-percent present-value, low-income housing credit.

Code Sec 7520

The interest rate is 5.40 percent for determining:

• the present value of an annuity,

• an interest for life or a term of years,

• or a remainder or reversionary interest.

Rev. Rul. 2026-17