Applicable Federal Rates · March 2009
Applicable Federal Rates for March 2009
Every rate the IRS published for March 2009 in Rev. Rul. 2009-8: 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 March 2009 the mid-term AFR was 1.94% and 120% of it was 2.33% (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 2.33%. The § 7520 rate for the month was 2.4%.
| Rate | Annual | Semiannual | Quarterly | Monthly |
|---|---|---|---|---|
| Short-term (3 years or less) | ||||
| AFR | 0.72% | 0.72% | 0.72% | 0.72% |
| 110% AFR | 0.79% | 0.79% | 0.79% | 0.79% |
| 120% AFR | 0.86% | 0.86% | 0.86% | 0.86% |
| 130% AFR | 0.94% | 0.94% | 0.94% | 0.94% |
| Mid-term (over 3, up to 9 years) | ||||
| AFR | 1.94% | 1.93% | 1.93% | 1.92% |
| 110% AFR | 2.13% | 2.12% | 2.11% | 2.11% |
| 120% AFR | 2.33% | 2.32% | 2.31% | 2.31% |
| 130% AFR | 2.53% | 2.51% | 2.50% | 2.50% |
| 150% AFR | 2.92% | 2.90% | 2.89% | 2.88% |
| 175% AFR | 3.41% | 3.38% | 3.37% | 3.36% |
| Long-term (over 9 years) | ||||
| AFR | 3.52% | 3.49% | 3.47% | 3.46% |
| 110% AFR | 3.88% | 3.84% | 3.82% | 3.81% |
| 120% AFR | 4.23% | 4.19% | 4.17% | 4.15% |
| 130% AFR | 4.59% | 4.54% | 4.51% | 4.50% |
| Term | Annual | Semiannual | Quarterly | Monthly |
|---|---|---|---|---|
| Short-term adjusted AFR | 0.84% | 0.84% | 0.84% | 0.84% |
| Mid-term adjusted AFR | 2.04% | 2.03% | 2.02% | 2.02% |
| Long-term adjusted AFR | 4.58% | 4.53% | 4.50% | 4.49% |
| Adjusted federal long-term rate (§ 382) | 4.58% |
| Long-term tax-exempt rate (§ 382; highest of this and the prior two months) | 5.49% |
| § 7520 rate (annuities, life estates, remainders) | 2.4% |
Source: IRS Rev. Rul. 2009-8, 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: 2.33% → 2.4%, 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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