IRS released monthly prescribed interest rates for March 2026 in Rev. Rul. 2026-6.
The ruling provides:
Applicable federal rates under §1274(d)
Adjusted AFR under §1288(b)
§382 long-term rates
§42 low-income housing credit percentages
§7520 valuation rate
This is routine monthly guidance. It updates rate tables only.
Key Rates for March 2026
Applicable Federal Rates under §1274(d)
Annual compounding AFR:
Short-term: 3.59%
Mid-term: 3.93%
Long-term: 4.72%
Long-term AFR with monthly compounding: 4.63%.
These rates apply to debt instruments, below-market loans, installment sales, and other transactions requiring imputed interest.
Adjusted AFR under §1288(b)
Annual compounding adjusted AFR:
Short-term: 2.72%
Mid-term: 2.97%
Long-term: 3.58%
Used primarily for original issue discount accrual on certain debt instruments.
§382 Rates
Adjusted federal long-term rate: 3.58%
Long-term tax-exempt rate: 3.58%
These rates limit the annual use of net operating losses after an ownership change.
