Applicable Federal Rates · January 2008
Applicable Federal Rates for January 2008
Every rate the IRS published for January 2008 in Rev. Rul. 2008-4: 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 2008 the mid-term AFR was 3.58% and 120% of it was 4.31% (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 4.31%. The § 7520 rate for the month was 4.4%.
| Rate | Annual | Semiannual | Quarterly | Monthly |
|---|---|---|---|---|
| Short-term (3 years or less) | ||||
| AFR | 3.18% | 3.16% | 3.15% | 3.14% |
| 110% AFR | 3.51% | 3.48% | 3.46% | 3.46% |
| 120% AFR | 3.83% | 3.79% | 3.77% | 3.76% |
| 130% AFR | 4.15% | 4.11% | 4.09% | 4.08% |
| Mid-term (over 3, up to 9 years) | ||||
| AFR | 3.58% | 3.55% | 3.53% | 3.52% |
| 110% AFR | 3.95% | 3.91% | 3.89% | 3.88% |
| 120% AFR | 4.31% | 4.26% | 4.24% | 4.22% |
| 130% AFR | 4.67% | 4.62% | 4.59% | 4.58% |
| 150% AFR | 5.40% | 5.33% | 5.29% | 5.27% |
| 175% AFR | 6.31% | 6.21% | 6.16% | 6.13% |
| Long-term (over 9 years) | ||||
| AFR | 4.46% | 4.41% | 4.39% | 4.37% |
| 110% AFR | 4.91% | 4.85% | 4.82% | 4.80% |
| 120% AFR | 5.36% | 5.29% | 5.26% | 5.23% |
| 130% AFR | 5.81% | 5.73% | 5.69% | 5.66% |
| Term | Annual | Semiannual | Quarterly | Monthly |
|---|---|---|---|---|
| Short-term adjusted AFR | 3.05% | 3.03% | 3.02% | 3.01% |
| Mid-term adjusted AFR | 3.39% | 3.36% | 3.35% | 3.34% |
| Long-term adjusted AFR | 4.25% | 4.21% | 4.19% | 4.17% |
| Adjusted federal long-term rate (§ 382) | 4.25% |
| Long-term tax-exempt rate (§ 382; highest of this and the prior two months) | 4.34% |
| § 7520 rate (annuities, life estates, remainders) | 4.4% |
Source: IRS Rev. Rul. 2008-4, 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: 4.31% → 4.4%, 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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