Car Loan Interest Deduction Calculator
New for 2025–2028: deduct up to $10,000 of interest on a qualifying new-vehicle loan — even with the standard deduction. Check your VIN, then your numbers.
Step 1 — Does your vehicle qualify? (VIN check)
Only new vehicles with final assembly in the United States qualify. Enter your 17-character VIN and we'll check the official NHTSA database for the assembly plant country.
Step 2 — Your deduction
- · Eligibility checklist: new vehicle (original use), final assembly in the US (VIN → PlantCountry), personal use, loan secured by the vehicle (first lien). Leases, used vehicles, and business/fleet vehicles do not qualify.
Estimated tax savings (deduction × your marginal rate)
A deduction reduces taxable income — not your tax bill dollar-for-dollar.
Who qualifies?
The vehicle must be new (original use starts with you), for personal use, with final assembly in the United States — that's what the VIN check above verifies via the official NHTSA database. The loan must be secured by the vehicle (first lien). Used vehicles, leases, and business/fleet vehicles do not qualify. The deduction phases out above $100,000 MAGI ($200,000 joint) at $200 per $1,000 of income, disappearing entirely at $150,000 ($250,000).
Your lender reports the interest on the new Form 1098-VLI. You claim the deduction on Schedule 1-A — no itemizing required.
Based on IRS proposed regulations (IR-2025-129); details may be refined in final regulations. Not tax advice — confirm with a tax professional.