IRS Rev. Rul. 2026-07: 2026 Federal Income Tax Rates and AFRs

Section 1274.--Determination of Issue Price in the Case of Certain Debt Instruments Issued for Property (Also Sections 42, 280G, 382, 467, 468, 482, 483, 1288, 7520, 7702, 7872.) Rev. Rul. 2026-7 This revenue ruling provides various prescribed rates for federal income tax purposes for April 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. 2026-7 TABLE 1 Applicable Federal Rates (AFR) for April 2026 Period for Compounding Annual Semiannual Quarterly Monthly Short-term AFR 3.59% 3.56% 3.54% 3.53% 110% AFR 3.96% 3.92% 3.90% 3.89% 120% AFR 4.32% 4.27% 4.25% 4.23% 130% AFR 4.68% 4.63% 4.60% 4.59% Mid-term AFR 3.82% 3.78% 3.76% 3.75% 110% AFR 4.20% 4.16% 4.14% 4.12% 120% AFR 4.59% 4.54% 4.51% 4.50% 130% AFR 4.97% 4.91% 4.88% 4.86% 150% AFR 5.75% 5.67% 5.63% 5.60% 175% AFR 6.73% 6.62% 6.57% 6.53% Long-term AFR 4.62% 4.57% 4.54% 4.53% 110% AFR 5.09% 5.03% 5.00% 4.98% 120% AFR 5.56% 5.48% 5.44% 5.42% 130% AFR 6.03% 5.94% 5.90% 5.87% REV. RUL. 2026-7 TABLE 2

Adjusted AFR for April 2026 Period for Compounding Annual Semiannual Quarterly Monthly Short-term adjusted AFR 2.72% 2.70% 2.69% 2.68% Mid-term adjusted AFR 2.89% 2.87% 2.86% 2.85% Long-term adjusted AFR 3.50% 3.47% 3.46% 3.45% REV. RUL. 2026-7 TABLE 3 Rates Under Section 382 for April 2026 Adjusted federal long-term rate for the current month 3.50% 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.) 3.58% REV. RUL. 2026-7 TABLE 4 Appropriate Percentages Under Section 42(b)(1) for April 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 7.98% Appropriate percentage for the 30% present value low-income housing credit 3.42% REV. RUL. 2026-7 TABLE 5 Rate Under Section 7520 for April 2026

Applicable federal rate for determining the present value of an annuity, an interest for life or a term of years, or a remainder or reversionary interest 4.6%