Does your car qualify for the car loan interest deduction?
A free car loan checker: type your VIN, and we confirm where the vehicle was assembled and walk you through the rest of the IRS rules. No signup, nothing stored.
Free deduction calculator
Enter your loan and income. The numbers update as you type. Nothing leaves your browser.
The rules in plain English
- Up to $10,000 a year of interest on a qualifying car loan, for tax years 2025 through 2028.
- You get it whether or not you itemize. It sits on Form 1040, Schedule 1-A, Part IV, "No Tax on Car Loan Interest."
- Income limit: the deduction shrinks by $200 for every $1,000 (or part of one) of modified adjusted gross income above $100,000 single or $200,000 married filing jointly. The cut comes off your actual interest, not off the $10,000 cap, so a small loan can hit $0 well before $150,000.
- The vehicle: a car, minivan, van, SUV, pickup, or motorcycle, under 14,000 lb, bought new (you are the first owner), and finally assembled in the United States. Brand does not matter; a Honda from Ohio qualifies and a Ford from Mexico does not.
- The loan: started after December 31, 2024, secured by a first lien on the vehicle, from a lender that is not a relative or a business you own. Personal use only. Leases don't count. Refinancing a qualifying loan generally keeps it qualifying.
- Paperwork: you must enter the VIN on your return. Lenders send Form 1098-VLI if you paid $600 or more in interest.
How to find out where your car was assembled
- The first character of the VIN. 1, 4, or 5 means the United States. 2 is Canada, 3 is Mexico, J is Japan, K is Korea, W is Germany. This is reliable for the country, and it is the quickest check on a dealer lot.
- The window sticker. Every new vehicle's Monroney label has a "Final Assembly Point" line. The IRS points to this as the source of truth. Dealers keep copies if yours is gone.
- This tool. The VIN checker above asks the NHTSA decoder for the exact plant, city, and country.
Popular models
Not sure which plant built yours? Start with the model page.
- Toyota RAV4 mixed
- Ford F-150 US
- Honda CR-V mixed
- Chevrolet Silverado 1500 mixed
- Tesla Model Y US
- Toyota Camry US
- Honda Civic mixed
- Toyota Tacoma not US
- Ford Maverick not US
- Hyundai Tucson mixed
- Chevrolet Equinox not US
- Jeep Wrangler US
See the full list of US-assembled vehicles →
FAQ
Does a used car qualify?
No. The vehicle's original use must begin with you, so only new vehicles count. Buying out a lease does not qualify either.
Does a lease qualify?
No. Lease payments are not loan interest. Only a purchase loan secured by a first lien on the vehicle qualifies.
My car is a foreign brand but was built in the US. Does it qualify?
Yes, on the assembly test. The rule is about where final assembly happened, not the brand. A Honda from Ohio, a BMW from South Carolina, or a Hyundai from Alabama all pass.
My American-brand car was built in Mexico or Canada. Does it qualify?
No. Final assembly must be in the United States. Many Ford, Chevrolet, Ram, and Jeep models are built in Mexico or Canada, and those do not qualify.
Do I need to itemize?
No. The deduction is available whether you take the standard deduction or itemize.
How do I claim it?
On Form 1040, Schedule 1-A (Additional Deductions), Part IV, "No Tax on Car Loan Interest." You must enter the vehicle's VIN on the return.
Will I get a form from my lender?
If you paid $600 or more in interest during the year, the lender must send you Form 1098-VLI showing the amount.
What is the income limit?
The deduction is reduced by $200 for every $1,000 (or part of $1,000) that your modified adjusted gross income exceeds $100,000 (single) or $200,000 (married filing jointly). The reduction comes off your interest, not off the $10,000 cap, so a $3,000-interest loan is fully phased out by about $115,000 of income. Only someone at the full $10,000 keeps anything up to $150,000 / $250,000.