How to qualify for the new auto loan interest deduction

Did you buy a new vehicle in 2025? You may qualify for the new tax deduction for qualified vehicle loan interest.

Under the OBBBA, taxpayers can deduct up to $10,000 in auto loan interest for tax years 2025 through 2028. To qualify:

- The loan must be originated after December 31, 2024, and the loan must be secured by the vehicle
- It must be a qualified vehicle (car, minivan, SUV, pick-up truck, or motorcycle—you read that right!) less than 14,000 lbs. with final assembly in the USA
- It must be for personal use (no business or commercial use)

The deduction phases out for taxpayers with modified adjusted gross income (MAGI) over $100,000 ($200,000 for joint filers). That phase out drops the deductible interest by $200 for each $1,000 (or portion of) in excess of the MAGI limit.

Not sure where final assembly of your vehicle happened? The National Highway Traffic Safety Administration has a VIN Decoder website with a helpful guide to identify where your vehicle was manufactured.

As always, feel free to reach out if you have questions.