The IRS minimum interest rate for family loans

Rates for loans made in November 2026

Source: IRS Revenue Ruling 2026-21, published for November 2026. The IRS lists every month’s rates at irs.gov/applicable-federal-rates.

Which rate applies to your loan

Use the rate for the month the money is handed over and the loan’s length. The rate stays the same for the life of the loan; you don’t change it when the IRS publishes new rates. A loan with no fixed end date that the lender can call in at any time works differently: the test rate changes over time, so we suggest setting a fixed end date.

When the rate matters

• Loans of $10,000 or less. The IRS rules on low-interest loans don’t apply while the total one person owes the other is $10,000 or less, unless the money is used to buy investments such as stocks. If a loan with a fixed end date was ever over $10,000, the gift side of the rules keeps applying after it is paid down below that.

• Loans over $10,000. If you charge less than the minimum, the IRS can treat the interest you didn’t charge as a gift from the lender, and some of it as income the lender reports.

• Loans that total $100,000 or less. If you charge less than the minimum on loans that total $100,000 or less, the interest the lender is treated as receiving each year is limited to the borrower’s net investment income for that year (such as interest and dividends, less investment costs), and is zero if that income is $1,000 or less. This limit doesn’t apply if avoiding tax is one of the main reasons for the loan. The interest you didn’t charge can still count as a gift.

• A married couple counts as one person for these totals.

This is how the rules read, not tax advice. A tax professional can tell you what applies to you.

Questions