Car Loan Interest Deduction Calculator (2026)
If you financed a new, U.S.-assembled vehicle after 2024, you can deduct up to $10,000 of loan interest a year for 2025 through 2028, whether or not you itemize. Enter your loan to estimate 2026 interest and the tax it saves.
Checklist before you claim
- Bought new (the original use began with you), not leased
- Final assembly in the United States
- Loan taken out after December 31, 2024 and secured by the vehicle
- Mainly for personal use, under 14,000 pounds
- You have the VIN to enter on Schedule 1-A
Frequently asked questions
Which vehicles qualify?
New cars, minivans, vans, SUVs, pickup trucks and motorcycles under 14,000 pounds whose final assembly took place in the United States, bought for personal use. The loan must have been taken out after December 31, 2024 and be secured by the vehicle. Used vehicles and leases do not qualify.
How do I check where my car was assembled?
The window sticker lists the final assembly point, and the NHTSA VIN decoder shows the plant. You must report the vehicle identification number (VIN) on Schedule 1-A.
Is there an income limit?
The deduction drops by $200 for each $1,000 (or part of $1,000) of modified AGI above $100,000 ($200,000 for joint filers), so a $10,000 deduction is gone at $150,000 ($250,000 joint).
Can I deduct interest on a business vehicle?
This deduction is for personal-use vehicles. Interest on a vehicle used in a business is deducted on the business schedule instead, and the same interest cannot be deducted twice.