rr-26-03.pdf

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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. 2026-3

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.

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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

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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%

REV. RUL. 2026-3 TABLE 5

Rate Under Section 7520 for February 2026

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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%