Updated October 16, 2026. Quick answer: The section 7520 rate for November 2026 is 6.2%, up from 5.6% in October. The IRS sets it at 120% of the mid-term applicable federal rate for the month, rounded to the nearest two-tenths of one percent, and publishes it in Table 5 of that month’s revenue ruling (Rev. Rul. 2026-21 for November). For November the 120% mid-term figure is 6.11.
Section 7520 rates for 2026
| Valuation month | 120% of mid-term AFR | Section 7520 rate | Revenue ruling |
|---|---|---|---|
| January 2026 | 4.57 | 4.6% | Rev. Rul. 2026-2 |
| February 2026 | 4.63 | 4.6% | Rev. Rul. 2026-3 |
| March 2026 | 4.72 | 4.8% | Rev. Rul. 2026-6 |
| April 2026 | 4.59 | 4.6% | Rev. Rul. 2026-7 |
| May 2026 | 4.91 | 5.0% | Rev. Rul. 2026-9 |
| June 2026 | 4.97 | 5.0% | Rev. Rul. 2026-11 |
| July 2026 | 5.23 | 5.2% | Rev. Rul. 2026-12 |
| August 2026 | 5.23 | 5.2% | Rev. Rul. 2026-13 |
| September 2026 | 5.40 | 5.4% | Rev. Rul. 2026-17 |
| October 2026 | 5.54 | 5.6% | Rev. Rul. 2026-19 |
| November 2026 | 6.11 | 6.2% | Rev. Rul. 2026-21 |
The IRS describes the rate: “the interest rate for a particular month is the rate that is 120 percent of the applicable federal midterm rate (compounded annually) for the month in which the valuation date falls.” It adds “That rate is then rounded to the nearest two-tenths of one percent”.
How the rounding works
The statute says the value is determined “by using an interest rate (rounded to the nearest 2/10ths of 1 percent) equal to 120 percent of the Federal midterm rate in effect under section 1274(d)(1) for the month in which the valuation date falls”. For November 2026 the 120% mid-term figure is 6.11. The nearest multiple of 0.2 is 6.2, which is 0.09 away, against 0.11 from 6.0 (computed). So the November rate is 6.2%. We recomputed all eleven 2026 months and all twelve 2025 months this way, and each equals the rate printed in the revenue ruling’s Table 5 and in the IRS table.
The two-month look-back for charitable gifts
The statute allows an election: “the taxpayer may elect to use such Federal midterm rate for either of the 2 months preceding the month in which the valuation date falls”. It applies where “an income, estate, or gift tax charitable contribution is allowable for any part of the property transferred”. On the IRS table, that means a charitable transfer valued in November 2026 could use the September rate, 5.4%, the October rate, 5.6%, or the November rate, 6.2% (read from the table above).
What the rate is used for
The statute applies the rate to “any annuity, any interest for life or a term of years, or any remainder or reversionary interest”. The IRS page says the rate is “To be used to value certain charitable interests in trusts.” Table 5 of the revenue ruling is described as the 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. The same ruling carries the applicable federal rates; see the November 2026 AFR page for those, which are a different set of figures.
The 2025 section 7520 rates
For the same months a year earlier, from the IRS prior-years table:
| Valuation month | 120% of mid-term AFR | Section 7520 rate | Revenue ruling |
|---|---|---|---|
| January 2025 | 5.10 | 5.2% | Rev. Rul. 2025-1 |
| February 2025 | 5.43 | 5.4% | Rev. Rul. 2025-5 |
| March 2025 | 5.36 | 5.4% | Rev. Rul. 2025-6 |
| April 2025 | 5.06 | 5.0% | Rev. Rul. 2025-8 |
| May 2025 | 4.93 | 5.0% | Rev. Rul. 2025-10 |
| June 2025 | 4.90 | 5.0% | Rev. Rul. 2025-12 |
| July 2025 | 5.04 | 5.0% | Rev. Rul. 2025-13 |
| August 2025 | 4.88 | 4.8% | Rev. Rul. 2025-14 |
| September 2025 | 4.86 | 4.8% | Rev. Rul. 2025-17 |
| October 2025 | 4.65 | 4.6% | Rev. Rul. 2025-19 |
| November 2025 | 4.60 | 4.6% | Rev. Rul. 2025-21 |
| December 2025 | 4.55 | 4.6% | Rev. Rul. 2025-24 |
What comes next
The newest row is November 2026, from Rev. Rul. 2026-21, which the IRS posted on October 16, 2026. The December 2026 rate comes in the ruling that also sets the December AFRs; this page will not print a number until the IRS does.
Common mistakes
- Using the 120% mid-term figure as the section 7520 rate without rounding it to the nearest two-tenths of one percent.
- Mixing up the section 7520 rate with the applicable federal rates in the same ruling.
- Forgetting that the look-back election to an earlier month is available only where a charitable contribution is allowable.
Related: the November 2026 AFR page, AFR rates by month, and the charitable remainder trust retest.
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Answer againSources
- IRS, Section 7520 interest rates: https://www.irs.gov/businesses/small-businesses-self-employed/section-7520-interest-rates
- IRS, Section 7520 interest rates for prior years: https://www.irs.gov/businesses/small-businesses-self-employed/section-7520-interest-rates-for-prior-years
- 26 U.S.C. 7520, valuation tables (GovInfo): https://www.govinfo.gov/link/uscode/26/7520
- Rev. Rul. 2026-21, Table 1 and Table 5 (November 2026): https://www.irs.gov/pub/irs-drop/rr-26-21.pdf
- Rev. Rul. 2026-19, Table 1 and Table 5 (October 2026, earlier rate): https://www.irs.gov/pub/irs-drop/rr-26-19.pdf
Sources: the primary documents linked above, read on October 1 and October 16, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer, the plan administrator or the agency itself is the right place to confirm anything consequential.