Applicable Federal Rate May 2025

Applicable Federal Rate May 2025. Applicable federal rates (afr) each month, the internal revenue service provides various prescribed rates for federal income tax purposes and publishes the afr rates as revenue. The projections for the federal funds rate are the value of the midpoint of the projected appropriate target range for the federal funds rate or the projected appropriate target.

Each month the internal revenue service surveys hundreds of interest rates for various financial instruments and publishes the applicable federal rate (afr) that is applicable for charitable deduction calculations. These rates, known as applicable federal rates (afrs), are regularly published as revenue rulings.