Which Toyota models qualify for the car loan interest deduction?
7 of 16 Toyota models we track are fully US-assembled, 2 depend on the plant, and 7 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 Toyota 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 Toyota models
These pass the final-assembly test.
| Model | Plant(s) |
|---|---|
| Toyota Camry | Georgetown, Kentucky, USA All US-market Camrys are built in Kentucky. |
| Toyota Corolla Cross | Huntsville, Alabama, USA AALA MY2026: USA for both gas and hybrid (Mazda Toyota Manufacturing). |
| Toyota Grand Highlander | Princeton, Indiana, USA |
| Toyota Highlander | Princeton, Indiana, USA |
| Toyota Sequoia | San Antonio, Texas, USA |
| Toyota Sienna | Princeton, Indiana, USA |
| Toyota Tundra | San Antonio, Texas, USA |
Depends on the plant
These Toyota 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) |
|---|---|
| Toyota Corolla | Blue Springs, Mississippi, USA; Toyota City, Aichi, Japan Sedan mostly Mississippi; hatchback and some hybrids from Japan. |
| Toyota RAV4 | Georgetown, Kentucky, USA; Woodstock, Ontario, Canada; Cambridge, Ontario, Canada Only the RAV4 Plug-in Hybrid appears in the AALA snapshots we checked (Japan). The gas and hybrid RAV4 are built in Ontario and Kentucky per Toyota; check the VIN first digit (1, 4, or 5 = US). |
Not US-assembled
These fail the assembly test no matter the trim.
| Model | Plant(s) |
|---|---|
| Toyota 4Runner | Tahara, Aichi, Japan AALA MY2025: Japan. |
| Toyota bZ4X | Motomachi, Aichi, Japan |
| Toyota Crown | Japan |
| Toyota GR86 | Gunma, Japan |
| Toyota Land Cruiser | Japan |
| Toyota Prius | Toyota City, Aichi, Japan |
| Toyota Tacoma | Guanajuato, Mexico; Tijuana, Baja California, Mexico Production moved fully to Mexico for the 2024 redesign. |
Check your exact Toyota
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.