Applicable Federal Rates · January 2019
Applicable Federal Rates for January 2019
Every rate the IRS published for January 2019 in Rev. Rul. 2019-3: 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 2019 the mid-term AFR was 2.89% and 120% of it was 3.47% (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 3.47%. The § 7520 rate for the month was 3.4%.
| Rate | Annual | Semiannual | Quarterly | Monthly |
|---|---|---|---|---|
| Short-term (3 years or less) | ||||
| AFR | 2.72% | 2.70% | 2.69% | 2.68% |
| 110% AFR | 2.99% | 2.97% | 2.96% | 2.95% |
| 120% AFR | 3.27% | 3.24% | 3.23% | 3.22% |
| 130% AFR | 3.54% | 3.51% | 3.49% | 3.48% |
| Mid-term (over 3, up to 9 years) | ||||
| AFR | 2.89% | 2.87% | 2.86% | 2.85% |
| 110% AFR | 3.18% | 3.16% | 3.15% | 3.14% |
| 120% AFR | 3.47% | 3.44% | 3.43% | 3.42% |
| 130% AFR | 3.76% | 3.73% | 3.71% | 3.70% |
| 150% AFR | 4.36% | 4.31% | 4.29% | 4.27% |
| 175% AFR | 5.08% | 5.02% | 4.99% | 4.97% |
| Long-term (over 9 years) | ||||
| AFR | 3.15% | 3.13% | 3.12% | 3.11% |
| 110% AFR | 3.47% | 3.44% | 3.43% | 3.42% |
| 120% AFR | 3.80% | 3.76% | 3.74% | 3.73% |
| 130% AFR | 4.11% | 4.07% | 4.05% | 4.04% |
| Term | Annual | Semiannual | Quarterly | Monthly |
|---|---|---|---|---|
| Short-term adjusted AFR | 2.06% | 2.05% | 2.04% | 2.04% |
| Mid-term adjusted AFR | 2.19% | 2.18% | 2.17% | 2.17% |
| Long-term adjusted AFR | 2.39% | 2.38% | 2.37% | 2.37% |
| Adjusted federal long-term rate (§ 382) | 2.39% |
| Long-term tax-exempt rate (§ 382; highest of this and the prior two months) | 2.51% |
| § 7520 rate (annuities, life estates, remainders) | 3.4% |
Source: IRS Rev. Rul. 2019-3, 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: 3.47% → 3.4%, 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.
Related calculators
Calculate substantially equal periodic payments (SEPP) for penalty-free IRA withdrawals before age 59½ — all three IRS-approved methods side by side, with the formula and every assumption labeled.
Open tool →Roth Conversion Ladder CalculatorBuild the year-by-year schedule for penalty-free withdrawals before 59½ — each conversion, its 5-year seasoning date, the tax due, and the bridge funds needed while the first rungs season.
Open tool →Early Withdrawal Penalty CalculatorWhat a 401(k) or IRA withdrawal before 59½ actually costs — the 10% penalty, federal and state tax, net cash in hand, and the gross withdrawal needed to net a target amount.
Open tool →I Bond Rates by PeriodSeries I savings bond fixed, inflation and composite rates for every six-month period since 1998, the composite worked from Treasury's formula, and what each issue cohort earns now.
Open tool →