IRS Updates 2026 LIHTC State Allocation Ceilings

The Internal Revenue Service (IRS) has announced the per capita multipliers for low-income housing tax credits (LIHTCs) and private-activity bonds in 2026.

The state ceiling for LIHTCs will be the greater of $3.416 multiplied by the state population or $3,953,600 next year.

In Revenue Procedure 2025-32, the IRS updated the caps to apply the recent 12% allocation increase enacted in the One Big Beautiful Bill. An earlier notice failed to include the increase.

The 2026 amounts are an increase from $3 multiplied by the state population or a state minimum of $3,455,000 this year.

On the private-activity bond side, the state ceiling for the volume cap will be the greater of $135 multiplied by the state population or $397,625,000 in 2026.

That’s an increase from $130 multiplied by the state population or $388,780,000 this year.