rr-26-12.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. 2026-12

This revenue ruling provides various prescribed rates for federal income tax
purposes for July 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%. 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. Finally, Table 6 contains the blended annual rate for 2026 for purposes of
section 7872.

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REV. RUL. 2026-12 TABLE 1

Applicable Federal Rates (AFR) for July 2026

Period for Compounding
Annual Semiannual Quarterly Monthly

Short-term

AFR 4.00% 3.96% 3.94% 3.93%
110% AFR 4.41% 4.36% 4.34% 4.32%
120% AFR 4.81% 4.75% 4.72% 4.70%
130% AFR 5.22% 5.15% 5.12% 5.10%

Mid-term

AFR 4.35% 4.30% 4.28% 4.26%
110% AFR 4.79% 4.73% 4.70% 4.68%
120% AFR 5.23% 5.16% 5.13% 5.11%
130% AFR 5.67% 5.59% 5.55% 5.53%
150% AFR 6.55% 6.45% 6.40% 6.36%
175% AFR 7.67% 7.53% 7.46% 7.41%

Long-term

AFR 4.98% 4.92% 4.89% 4.87%
110% AFR 5.48% 5.41% 5.37% 5.35%
120% AFR 5.99% 5.90% 5.86% 5.83%
130% AFR 6.50% 6.40% 6.35% 6.32%

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REV. RUL. 2026-12 TABLE 2

Adjusted AFR for July 2026

Period for Compounding
Annual Semiannual Quarterly Monthly
Short-term
adjusted AFR 3.03% 3.01% 3.00% 2.99%

Mid-term
adjusted AFR 3.29% 3.26% 3.25% 3.24%

Long-term
adjusted AFR 3.77% 3.74% 3.72% 3.71%

REV. RUL. 2026-12 TABLE 3

Rates Under Section 382 for July 2026

Adjusted federal long-term rate for the current month 3.77%

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.) 3.77%

REV. RUL. 2026-12 TABLE 4

Appropriate Percentages Under Section 42(b)(1) for July 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 8.09%

Appropriate percentage for the 30% present value low-income
housing credit 3.47%

REV. RUL. 2026-12 TABLE 5

4

Rate Under Section 7520 for July 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 5.20%

REV. RUL. 2026-12 TABLE 6

Blended Annual Rate for 2026

Section 7872(e)(2) blended annual rate for 2026 3.82%