Applicable Federal Rates for November 2023

The IRS in Revenue Ruling 2022-20 has issued the various prescribed rates for federal income tax purposes.

What Is the Applicable Federal Rate (AFR)?

The applicable federal rate (AFR) is the minimum interest rate that the Internal Revenue Service (IRS) allows for private loans. Each month the IRS publishes a set of interest rates that the agency considers the minimum market rate for loans.  Any interest rate that is less than the AFR would have tax implications. The IRS publishes these rates in accordance with Section 1274(d) of the Internal Revenue Code.

Short-term AFR (debts of less than 3 years)
Mid-term AFR (debts of 3 to 9 years)
Long-term AFR (debts of more than 9 years)
Annual Semiannual Quarterly Monthly
Short-term 4.10% 4.06% 4.04% 4.03%
Mid-term 3.97% 3.93% 3.91% 3.90%
Long-term 3.92% 3.88% 3.86% 3.85%