rr-26-09.pdf

us-irs-revenue-rulings-rr-26-09rr-26-09.pdfGuidance

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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. 2026-9

This revenue ruling provides various prescribed rates for federal income tax
purposes for May 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. 2026-9 TABLE 1

Applicable Federal Rates (AFR) for May 2026

Period for Compounding
Annual Semiannual Quarterly Monthly

Short-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%

Mid-term

AFR 4.08% 4.04% 4.02% 4.01%
110% AFR 4.49% 4.44% 4.42% 4.40%
120% AFR 4.91% 4.85% 4.82% 4.80%
130% AFR 5.32% 5.25% 5.22% 5.19%
150% AFR 6.15% 6.06% 6.01% 5.98%
175% AFR 7.19% 7.07% 7.01% 6.97%

Long-term

AFR 4.83% 4.77% 4.74% 4.72%
110% AFR 5.32% 5.25% 5.22% 5.19%
120% AFR 5.80% 5.72% 5.68% 5.65%
130% AFR 6.30% 6.20% 6.15% 6.12%

REV. RUL. 2026-9 TABLE 2

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Adjusted AFR for May 2026

Period for Compounding
Annual Semiannual Quarterly Monthly
Short-term
adjusted AFR 2.89% 2.87% 2.86% 2.85%

Mid-term
adjusted AFR 3.09% 3.07% 3.06% 3.05%

Long-term
adjusted AFR 3.65% 3.62% 3.60% 3.59%

REV. RUL. 2026-9 TABLE 3

Rates Under Section 382 for May 2026

Adjusted federal long-term rate for the current month 3.65%

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.) 3.65%

REV. RUL. 2026-9 TABLE 4

Appropriate Percentages Under Section 42(b)(1) for May 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 8.04%

Appropriate percentage for the 30% present value low-income
housing credit 3.44%

REV. RUL. 2026-9 TABLE 5

Rate Under Section 7520 for May 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 5.00%

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