IRS provides February 2026 federal rates for loans, housing credits, valuation, and ownership-change limits

Rev. Rul. 2026-3

Internal Revenue Service released Rev. Rul. 2026-3, setting the federal interest rates and percentages used across multiple Code provisions for February 2026.

The ruling publishes the monthly Applicable Federal Rates, adjusted AFRs, §382 limitation rates, low-income housing credit percentages, and the §7520 valuation rate.

These rates apply automatically. No elections. No discretion. If you use these provisions, these numbers control.

Scope of Rates Covered

The ruling provides February 2026 rates for the following sections:

• §1274. Issue price of debt issued for property using AFRs.

• §1288. Adjusted AFRs for certain long-term contracts.

• §382. Limitation rates following an ownership change.

• §42. Applicable percentages for low-income housing tax credits.

• §7520. Valuation of annuities, life interests, remainders, and reversions.

Key Rates at a Glance

Applicable Federal Rates (AFR). Annual compounding.

• Short-term AFR: 3.56%

• Mid-term AFR: 3.86%

• Long-term AFR: 4.70%

Higher AFR multiples are also provided. …