Last updated October 20, 2026. October's rate comes from Revenue Ruling 2026-19. November's rate is already published in Revenue Ruling 2026-21.
5.6%. That is the IRS Section 7520 rate for October 2026, set by Revenue Ruling 2026-19, and it drives every GRAT, CRT and QPRT valuation you sign off on this month. November's rate is already out at 6.2%, so the month your client funds the trust now changes the math.
You check this rate all the time because it keeps moving, and every move changes what a trust is worth. A client who funds a GRAT in October faces a hurdle 0.8 points higher than one who funded in March, and that gap follows the trust for its entire term.
This guide gives you the current rate with its citation, a 12-month history, and a plain explanation of which planning vehicles want the rate high and which want it low.
The IRS publishes the rate monthly inside the same revenue ruling that sets the Applicable Federal Rates, and its Section 7520 interest rates page carries the current table. For October 2026, that ruling is Revenue Ruling 2026-19, and the rate is 5.6%. For November 2026, it is Revenue Ruling 2026-21, and the rate is 6.2%. Our AFR rates page has the full tables behind both.
Under Section 7520(a), the rate is 120% of the annual mid-term AFR, rounded to the nearest two-tenths of one percent. Treas. Reg. section 1.7520-1 restates the calculation. October's 120% figure is 5.54%, which rounds up to 5.6%. November's is 6.11%.
Rounding can change a valuation. November's 6.11% clears the 6.10% midpoint by one hundredth, so it rounds up to 6.2%. A figure below 6.10% would have rounded to 6.0%, and a two-tenths swing like that can move a remainder interest on a large trust by tens of thousands of dollars.
Take the 120% figure from the ruling instead of multiplying the mid-term AFR by 1.2 yourself. The IRS multiplies the unrounded rate, so 4.61% times 1.2 gives 5.53% while the ruling prints 5.54%.
The IRS usually releases each ruling in the second half of the preceding month, so you can plan a transfer around next month's number before it takes effect. That is the situation right now. Under Section 7520(a), a taxpayer claiming an income, estate or gift tax charitable deduction may elect the rate for the month of the transfer or either of the two preceding months. A client transferring in November could use the September, October or November rate, whichever produces the better result.
Parallel regulations restate this rule by tax type: Treas. Reg. section 1.7520-2 (income), section 20.7520-2 (estate) and section 25.7520-2 (gift).
The table below tracks the published rate for each of the last 12 months, with its governing revenue ruling and the unrounded 120% figure from the IRS tables.
| Month | 120% of mid-term AFR | Section 7520 rate | Revenue ruling |
|---|---|---|---|
| December 2025 | 4.55% | 4.6% | Rev. Rul. 2025-24 |
| January 2026 | 4.57% | 4.6% | Rev. Rul. 2026-2 |
| February 2026 | 4.63% | 4.6% | Rev. Rul. 2026-3 |
| March 2026 | 4.72% | 4.8% | Rev. Rul. 2026-6 |
| April 2026 | 4.59% | 4.6% | Rev. Rul. 2026-7 |
| May 2026 | 4.91% | 5.0% | Rev. Rul. 2026-9 |
| June 2026 | 4.97% | 5.0% | Rev. Rul. 2026-11 |
| July 2026 | 5.23% | 5.2% | Rev. Rul. 2026-12 |
| August 2026 | 5.23% | 5.2% | Rev. Rul. 2026-13 |
| September 2026 | 5.40% | 5.4% | Rev. Rul. 2026-17 |
| October 2026 | 5.54% | 5.6% | Rev. Rul. 2026-19 |
| November 2026 | 6.11% | 6.2% | Rev. Rul. 2026-21 |
The rate held near a 4.6% floor through late 2025 and early 2026, with one brief uptick to 4.8% in March. It stepped up to 5.0% in May and 5.2% in July, then climbed every month from August. From April's 4.6% to November's 6.2%, the rate rose 1.6 points in seven months.
The Section 7520 rate follows mid-term Treasury yields, not the Fed's overnight rate, because the mid-term AFR comes from average market yields on 3-to-9-year U.S. government obligations. The two can move in different directions. Right now they are moving together, since the Federal Reserve raised its target range by a quarter point to 3.75% to 4.00% on September 16, 2026.
Across the IRS's published tables from 1997 on, the rate has ranged from a low of 0.4% (August through November 2020) to a high of 8.2% (in 1997 and 2000). At 6.2%, November is high for this decade and still well inside that range. The IRS keeps the full list on its prior years' rates page.
A transfer valued in November uses November's 6.2% unless the charitable election applies. For a November valuation, the election opens September's 5.4% and October's 5.6%. Non-charitable vehicles get no choice, so a GRAT or QPRT valued in November uses 6.2%.
| Vehicle | Rate that helps | Rate available for a November 2026 transfer |
|---|---|---|
| GRAT | Lower | 6.2% only (no election) |
| Charitable lead annuity trust (CLAT) | Lower | 5.4% (September), by election |
| Charitable remainder trust (CRT) | Higher | 6.2% (November) |
| QPRT | Higher | 6.2% only (no election) |
A client deciding between funding a GRAT this month or next faces a hurdle that rises 0.6 points on November 1. Run that comparison before the month ends.
The Section 7520 rate feeds the IRS actuarial tables that value annuities, life estates, remainders and reversions, including Table S for single-life factors and Publication 1458 for unitrust remainder factors. Whether a rising or falling rate helps your client depends on the vehicle.
For a Grantor Retained Annuity Trust, the Section 7520 rate is the hurdle. The grantor keeps a fixed annuity for the trust's term, and only appreciation above that hurdle passes to the remainder beneficiaries free of gift and estate tax. A lower rate is an easier bar to clear.
A lower rate also raises the present value of each annuity dollar the grantor retains. In a zeroed-out GRAT, a smaller annuity then zeroes out the gift, which leaves more for the remainder beneficiaries. Charitable Lead Annuity Trusts work the same way in reverse. Charity gets the annuity, family gets the remainder, and a low rate raises the present value of the charitable interest, which shrinks what the family owes gift tax on.
Once you fund a GRAT or CLAT, the rate locks for the life of the trust. A later increase in the published rate does not touch a trust that already exists, so the rate matters only at the moment of funding.
Charitable Remainder Trusts run the opposite direction. The donor takes an upfront income tax deduction equal to the present value of what charity eventually receives. A higher rate discounts the future payouts more heavily, which leaves a larger present-value remainder and a bigger deduction today. Charitable Remainder Annuity Trusts feel this more than Charitable Remainder Unitrusts, because the rate touches only the initial deduction on a CRUT and leaves the ongoing payout math alone.
Qualified Personal Residence Trusts follow the same logic. The grantor keeps the right to live in the home for a term of years, and a higher rate increases the value of that retained right, which lowers the taxable gift on the remainder. On a $2 million home with a 15-year term, the difference between a 2% and a 5% environment can move the taxable gift by several hundred thousand dollars.
A rate guarantees nothing about outcome. A GRAT funded with a volatile, high-upside asset can clear almost any hurdle, and a CRUT's real payout depends on investment performance long after the rate set the initial deduction. The rate governs the valuation at the moment of transfer and tells you nothing about how the trust performs afterward.
The IRS publishes the rate directly, but its own page is a plain table with no worked calculation, so most practitioners go elsewhere for the trend and the context. The tools that fill that gap fall into four groups:
Bizora is in that last group. Ask for the current Section 7520 rate, or for how it affects a specific GRAT or CRT calculation, and the answer comes back with the governing revenue ruling cited. The View Steps panel shows the reasoning path from question to conclusion, including which sources were used and why, which helps when a partner asks where a number came from.
Bizora is a research layer. It does not replace the actuarial software that runs the trust calculations. For a broader look at how research tools compare, read our comparison of tax research software.
The Section 7520 rate changes every month, and a stale number can sink a valuation. It can decide whether a GRAT clears its hurdle, or whether a QPRT gift holds up when someone challenges it.
Confirm the rate and its citation before you run a calculation, not after a client asks why your figures differ from what they read somewhere else. If checking the rate takes the most time in your workflow, Bizora traces the current rate to the governing revenue ruling and shows the reasoning path with View Steps. Start a 7-day free trial, no credit card required, or see plans and pricing.
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Start Free TrialThe Section 7520 rate for October 2026 is 5.6%, set by Revenue Ruling 2026-19. It is up from 5.4% in September and 5.2% in July and August. The November 2026 rate is already published at 6.2% in Revenue Ruling 2026-21.
The Section 7520 rate for November 2026 is 6.2%, set by Revenue Ruling 2026-21. The 120% mid-term figure is 6.11%, which rounds up to 6.2%. A transfer valued in November uses that rate unless the taxpayer elects an earlier month under the charitable rule.
Under Section 7520(a), the rate is 120% of the annual mid-term applicable federal rate (the Section 1274(d) mid-term rate), rounded to the nearest two-tenths of one percent. Use the 120% figure the ruling prints, since the IRS multiplies the unrounded rate. The ruling usually comes out in the second half of the preceding month.
A low rate favors a GRAT. It sets an easier hurdle for the trust's assets to beat, and it raises the present value of the retained annuity, so a smaller annuity zeroes out the gift. Charitable Lead Annuity Trusts follow the same low-rate preference.
A high rate favors both. On a Charitable Remainder Trust, a higher rate produces a larger upfront charitable deduction. On a Qualified Personal Residence Trust, a higher rate increases the value of the retained right to live in the home, which lowers the taxable gift on the remainder interest.
Yes, if you claim an income, estate or gift tax charitable deduction. Under Section 7520(a), you may elect the rate for the month of the transfer or either of the two preceding months, whichever produces the better result for your client. Non-charitable transfers such as a GRAT or QPRT must use the valuation month's rate.
Desktop actuarial tools built for trust calculations, enterprise tax suites, planned-giving software and AI research tools each cover a different piece of the job. Bizora fits the research category. It traces the current rate to the governing revenue ruling and shows the reasoning path with View Steps, so you can verify the number instead of taking it on faith.
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