Updated October 30, 2026. Quick answer: The IRS has not yet published the applicable federal rates for December 2027. The most recent ruling, Rev. Rul. 2026-21, sets November 2026 at 4.67% short-term, 5.08% mid-term and 5.52% long-term, annual compounding. The IRS determines each month’s rates during the month before it, so this page carries the November figures until the December ruling appears. As of October 30, 2026 no December 2027 rate exists, and the rates for December 2026 through November 2027 are not published either.
How the IRS sets next month’s rate
Section 1274(d)(1)(B) has the Secretary determine the short-term, mid-term and long-term rates during one calendar month for the next: each is the “rate which shall apply during the following calendar month”. That is why a month’s rate is public before the month begins, and why December 2027 is not out until the IRS issues its ruling during the month before it. For each of the eleven 2026 rate months published so far, the IRS’s copy of the ruling is dated between the 15th and the 21st of the month before the rate month, shown below as the IRS server reports it.
| Rate month | Revenue ruling | Date on the IRS’s copy of the ruling file |
|---|---|---|
| January 2026 | 2026-2 | December 15, 2025 |
| February 2026 | 2026-3 | January 15, 2026 |
| March 2026 | 2026-6 | February 17, 2026 |
| April 2026 | 2026-7 | March 16, 2026 |
| May 2026 | 2026-9 | April 16, 2026 |
| June 2026 | 2026-11 | May 15, 2026 |
| July 2026 | 2026-12 | June 15, 2026 |
| August 2026 | 2026-13 | July 15, 2026 |
| September 2026 | 2026-17 | August 21, 2026 |
| October 2026 | 2026-19 | September 18, 2026 |
| November 2026 | 2026-21 | October 16, 2026 |
When the December ruling should appear
Section 1274(d)(1)(B) puts the determination in November 2027 for a December 2027 rate. The statute fixes the month of the determination, not a day. The only evidence of its habit is the previous year’s dates, taken from the IRS server for the same month’s ruling file, for the three rate months ending with December:
| Rate month | Determined, by statute | The same month a year earlier: ruling and date on the IRS’s file |
|---|---|---|
| October 2027 | during September 2027 | October 2026: 2026-19, September 18, 2026 |
| November 2027 | during October 2027 | November 2026: 2026-21, October 16, 2026 |
| December 2027 | during November 2027 | December 2026: not yet published |
One year of dates is a record, not a schedule. The rulings for December 2026 through November 2027 come first, and each is its own document.
The latest published rates: November 2026
The most recent ruling is Rev. Rul. 2026-21, whose file on the IRS server is dated October 16, 2026. It sets November 2026 at 4.67% short-term, 5.08% mid-term and 5.52% long-term, annual compounding. Table 1 in full, every tier and every compounding column, as printed:
| Tier | Rate | Annual | Semiannual | Quarterly | Monthly |
|---|---|---|---|---|---|
| Short-term | AFR | 4.67% | 4.62% | 4.59% | 4.58% |
| Short-term | 110% AFR | 5.14% | 5.08% | 5.05% | 5.03% |
| Short-term | 120% AFR | 5.62% | 5.54% | 5.50% | 5.48% |
| Short-term | 130% AFR | 6.10% | 6.01% | 5.97% | 5.94% |
| Mid-term | AFR | 5.08% | 5.02% | 4.99% | 4.97% |
| Mid-term | 110% AFR | 5.60% | 5.52% | 5.48% | 5.46% |
| Mid-term | 120% AFR | 6.11% | 6.02% | 5.98% | 5.95% |
| Mid-term | 130% AFR | 6.64% | 6.53% | 6.48% | 6.44% |
| Mid-term | 150% AFR | 7.67% | 7.53% | 7.46% | 7.41% |
| Mid-term | 175% AFR | 8.98% | 8.79% | 8.70% | 8.63% |
| Long-term | AFR | 5.52% | 5.45% | 5.41% | 5.39% |
| Long-term | 110% AFR | 6.09% | 6.00% | 5.96% | 5.93% |
| Long-term | 120% AFR | 6.65% | 6.54% | 6.49% | 6.45% |
| Long-term | 130% AFR | 7.22% | 7.09% | 7.03% | 6.99% |
The same ruling’s Table 5 carries the section 7520 rate for November 2026, 6.20%, which the IRS sets from the 120% mid-term rate of 6.11%. It is a separate figure from the three AFR tiers; the series is on the 7520 rate page.
Where December fits in the three-month look-back for a sale
For a sale or exchange, section 1274(d)(2) uses “the lowest of the applicable Federal rates in effect for any month in the 3-calendar-month period ending with the 1st calendar month in which there is a binding contract in writing for such sale or exchange”. For a binding written contract in December 2027 the window is October 2027, November 2027 and December 2027. None of those three months is published, so this page can name no lowest rate:
| Month | Short-term | Mid-term | Long-term |
|---|---|---|---|
| October 2027 | not yet published | not yet published | not yet published |
| November 2027 | not yet published | not yet published | not yet published |
| December 2027 | not yet published | not yet published | not yet published |
As each month is published its row will be filled from the ruling, and the lowest of the three is read across the window.
Which tier a loan uses
The applicable federal rate comes from section 1274(d) and depends on the term of the debt instrument. Section 1274(d)(1)(A) sets the tier: “Not over 3 years” takes the short-term rate, “Over 3 years but not over 9 years” the mid-term rate and “Over 9 years” the long-term rate. The loan mechanics, including the dollar exceptions, are on the family loan minimum interest rate page, and the calculator turns a rate into dollars.
Common mistakes
- Treating this page’s November figures as the December 2027 rate. They are not, and no December 2027 rate is published yet.
- Reading any published 2026 rate as a sign of the December 2027 rate. Each month is its own ruling.
- Using a month’s rate for a loan made in a different month without checking the look-back rule that applies to it.
- Reading the section 7520 rate as an AFR tier. It is a separate figure in the same ruling.
Related: the 2027 AFR rates, November 2027 AFR rates, AFR rates by month, the 2026 AFR table, and the family loan minimum interest rate.
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Sources
- Rev. Rul. 2026-21, Table 1 and Table 5 (November 2026): https://www.irs.gov/pub/irs-drop/rr-26-21.pdf
- 26 U.S.C. 1274, determination of issue price in the case of certain debt instruments (GovInfo): https://www.govinfo.gov/link/uscode/26/1274
- IRS, Section 7520 interest rates: https://www.irs.gov/businesses/small-businesses-self-employed/section-7520-interest-rates
Sources: the primary documents linked above, read on October 30, 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.