New US tax law (OBBBA §70203)
Is your car loan interest tax-deductible? Find out in 60 seconds.
Find out in 60 seconds if your car loan interest is tax-deductible. Up to $10,000 a year in car loan interest could be deductible — but only if your vehicle meets 4 strict rules.
In short
Since 2025, US taxpayers can deduct up to $10,000 per year of interest paid on a car loan — but only for a new vehicle with final assembly in the United States, bought for personal use, with a loan that originated after December 31, 2024. It is an above-the-line deduction, so no itemizing is required. Use the free VIN checker above to verify your vehicle.
The 4 rules your car must pass
Miss even one, and the deduction doesn't apply. Here's the plain-English version:
1.The vehicle is NEW
1–4Original use must begin with you — used or pre-owned vehicles do not qualify.
2.Final assembly in the USA
1–4The vehicle's final assembly point must be in the United States. Your VIN's plant country tells you this.
3.Personal use
1–4The vehicle must be for personal use — not business, fleet, or for-hire use.
4.Loan originated after 2024-12-31
1–4The auto loan must have been originated after December 31, 2024.
What could it be worth?
Example: a $45,000 loan at 7% APR over 6 years.
Year-1 interest
$2,952
Estimated deduction
$2,952
Tax saved (22% bracket)
$649
How it works
1. Enter your VIN
We decode it with the official NHTSA database — free, no signup.
2. Check the 4 rules
See exactly which rules your vehicle passes or fails, with the law cited.
3. Estimate your savings
Run the calculator to see your deduction and real tax savings.
Common questions
Is car loan interest tax-deductible in 2026?
Yes — under the OBBBA (§70203), you can deduct up to $10,000 per year of interest paid on a qualifying new-vehicle auto loan. The vehicle must be new, finally assembled in the USA, for personal use, and the loan must have originated after December 31, 2024.
Do I need to itemize to claim it?
No. This is an above-the-line deduction, meaning you can claim it whether you take the standard deduction or itemize.
Does a used car qualify?
No. Only new vehicles — where the original use begins with you — qualify.
How do I know if my car was assembled in the USA?
Enter your 17-character VIN in our free checker above. We decode it with the official NHTSA database and show you the plant country.
File your taxes and claim it
Found out you qualify? These tax-filing services can help you claim the deduction correctly on your return.
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Disclaimer: Estimates only — not tax advice. Tax rules are complex and change. Confirm your situation with a qualified CPA or tax professional before filing.