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 in plain English
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.