Car Loan Interest Deduction + VIN Check
Deduct up to $10,000 of car loan interest. But only if your car was assembled in the US. Check your VIN here for free.
Step 1: Does your car qualify? Check the VIN
Step 2: Estimate your deduction and savings
The rules made simple
The new law lets you deduct interest on a car loan. The cap is $10,000 of interest per year. It runs for tax years 2025 through 2028. You can claim it even with the standard deduction, using Schedule 1-A.
Your car must pass five tests
The vehicle must be new, not used. You must have bought it after December 31, 2024. It must be for personal use, not business. The loan must be secured by the car itself. And final assembly must have happened in the United States. The VIN checker above answers the last test using official government data.
The income phase out
The deduction drops by $200 for every $1,000 of income above $100,000. For married couples the limit is $200,000. It phases out fully at $150,000 single and $250,000 married.
One more thing
You must list your VIN on your tax return to claim this deduction. Your lender will send you a statement showing the interest you paid.
Frequently asked questions
Do leases qualify for the car loan deduction?
No. The deduction applies to interest on a loan used to buy the vehicle. Lease payments do not qualify. Read more about leases, used cars, and refinancing.
Do used cars qualify?
No. The vehicle must be new and you must be its first owner. Certified pre-owned does not count. See the full used car rules.
Which cars are assembled in the US?
Many models from Toyota, Honda, BMW, Hyundai, and others are built in American plants. The brand does not matter, the plant does. See the full list of qualifying cars or check your VIN above.
Does the deduction double for married couples?
No. The $10,000 cap stays the same per return. Married couples get a higher income phase-out threshold. See what doubles for married couples.