Applicable Federal Rates · January 2003
Applicable Federal Rates for January 2003
Every rate the IRS published for January 2003 in Rev. Rul. 2003-5: the short-, mid- and long-term AFR at four compounding periods, the multiples, the adjusted AFR, and the § 7520 rate. The 120% mid-term row is worked below the table.
In January 2003 the mid-term AFR was 3.43% and 120% of it was 4.12% (annual compounding), so a 72(t)/SEPP payment beginning in either of the two following months could use up to the greater of 5% and 4.12%. The § 7520 rate for the month was 4.2%.
| Rate | Annual | Semiannual | Quarterly | Monthly |
|---|---|---|---|---|
| Short-term (3 years or less) | ||||
| AFR | 1.81% | 1.80% | 1.80% | 1.79% |
| 110% AFR | 1.99% | 1.98% | 1.98% | 1.97% |
| 120% AFR | 2.17% | 2.16% | 2.15% | 2.15% |
| 130% AFR | 2.35% | 2.34% | 2.33% | 2.33% |
| Mid-term (over 3, up to 9 years) | ||||
| AFR | 3.43% | 3.40% | 3.39% | 3.38% |
| 110% AFR | 3.77% | 3.74% | 3.72% | 3.71% |
| 120% AFR | 4.12% | 4.08% | 4.06% | 4.05% |
| 130% AFR | 4.47% | 4.42% | 4.40% | 4.38% |
| 150% AFR | 5.17% | 5.10% | 5.07% | 5.05% |
| 175% AFR | 6.04% | 5.95% | 5.91% | 5.88% |
| Long-term (over 9 years) | ||||
| AFR | 4.90% | 4.84% | 4.81% | 4.79% |
| 110% AFR | 5.39% | 5.32% | 5.29% | 5.26% |
| 120% AFR | 5.89% | 5.81% | 5.77% | 5.74% |
| 130% AFR | 6.39% | 6.29% | 6.24% | 6.21% |
| Term | Annual | Semiannual | Quarterly | Monthly |
|---|---|---|---|---|
| Short-term adjusted AFR | 1.69% | 1.68% | 1.68% | 1.67% |
| Mid-term adjusted AFR | 3.07% | 3.05% | 3.04% | 3.03% |
| Long-term adjusted AFR | 4.61% | 4.56% | 4.53% | 4.52% |
| Adjusted federal long-term rate (§ 382) | 4.61% |
| Long-term tax-exempt rate (§ 382; highest of this and the prior two months) | 4.65% |
| § 7520 rate (annuities, life estates, remainders) | 4.2% |
Source: IRS Rev. Rul. 2003-5, Tables 1, 2, 3 and 5 (PDF on irs.gov). Percentages are shown as the ruling prints them; nothing here is rounded or derived except the worked lines below, which are labelled as such. Rates apply to the calendar month named, under IRC § 1274(d); which month governs a given instrument depends on the Code section that uses it.
How the 120% mid-term rate is derived
The IRS applies each multiple to the semiannual mid-term AFR, then converts that semiannual rate to the other compounding periods. Multiplying the annual figure by 1.2 does not reproduce the published table; this does, within 0.01 percentage points, in every ruling since January 2000.
The § 7520 rate is the annual 120% mid-term figure rounded to the nearest 0.2%, with a tie rounding up: 4.12% → 4.2%, which is what the ruling publishes.
What these rates are for
IRC § 1274(d) requires the IRS to publish the applicable federal rates every month: the short-term rate for instruments of three years or less, the mid-term rate for over three and up to nine years, and the long-term rate beyond that, each set from the average market yield on outstanding U.S. Treasury obligations of comparable maturity. The multiples serve other Code sections: 120% of the mid-term rate caps a 72(t)/SEPP fixed-amortization or annuitization payment (Notice 2022-6) and, rounded to 0.2%, is the § 7520 rate used to value annuities, life estates and remainders; the 110%, 130%, 150% and 175% rows feed § 42, § 382, § 467 and § 468 computations. The adjusted AFR in Table 2 is the § 1288 rate for tax-exempt obligations.
Informational only, not tax, legal or financial advice. Confirm the figure against the linked ruling before relying on it.
Last reviewed: November 2026 · snapshot built 2026-10-26 from irs.gov.
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