Which Kia models qualify for the car loan interest deduction?
2 of 10 Kia models we track are fully US-assembled, 2 depend on the plant, and 6 are built outside the US.
Brand does not matter for this deduction. What matters is where the specific vehicle had its final assembly. Below is every Kia model we track, sorted by whether it passes that test. Assembly data is from the NHTSA American Automobile Labeling Act (Part 583) reports for model years 2025 and 2026, plus manufacturer disclosures where a model is not listed.
US-assembled Kia models
These pass the final-assembly test.
| Model | Plant(s) |
|---|---|
| Kia EV9 | West Point, Georgia, USA |
| Kia Telluride | West Point, Georgia, USA |
Depends on the plant
These Kia models come from more than one country. The first character of the VIN is 1, 4, or 5 when the vehicle was built in the United States.
| Model | Plant(s) |
|---|---|
| Kia Sorento | West Point, Georgia, USA; Hwaseong, South Korea Gas Sorento is built in Georgia (AALA: USA both years). Sorento Hybrid and Plug-in Hybrid are imported from South Korea and do not qualify. |
| Kia Sportage | West Point, Georgia, USA; Gwangju, South Korea AALA: gas Sportage is South Korea and USA both years; Sportage Hybrid and Plug-in Hybrid are South Korea only. |
Not US-assembled
These fail the assembly test no matter the trim.
| Model | Plant(s) |
|---|---|
| Kia Carnival | Gwangmyeong, South Korea |
| Kia K4 | Pesquería, Nuevo León, Mexico |
| Kia K5 | Hwaseong, South Korea AALA MY2025 and MY2026 list South Korea only. Earlier K5 production in Georgia has ended. |
| Kia Niro | Hwaseong, South Korea Hybrid, plug-in hybrid, and electric Niro are all South Korea. |
| Kia Seltos | Gwangju, South Korea |
| Kia Soul | Gwangju, South Korea AALA MY2025: South Korea. |
Check your exact Kia
Trim and model year can change the plant. Your VIN settles it.
The other rules
Passing the assembly test is necessary but not sufficient. The IRS also requires all of the following.
- 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.