Car loan interest deduction
Up to $10,000
Can I Write Off Car Loan Interest?
Short answer: Yes for 2025-2028: up to $10,000 of interest on a loan for a new, US-assembled personal vehicle is deductible.
Leases and used cars don't qualify; phases out above $100,000 of income ($200,000 joint).
Records to keep: Keep receipts, statements (1098, 1098-T, 1099, W-2G), and a note of what each cost was for. Compare itemizing to the 2026 standard deduction before you claim.
Car loan interest deduction
Typical range: Up to $10,000
Individuals / Personal Taxes
Yes for 2025-2028: up to $10,000 of interest on a loan for a new, US-assembled personal vehicle is deductible.
Business justification
Yes for 2025-2028: up to $10,000 of interest on a loan for a new, US-assembled personal vehicle is deductible. Leases and used cars don't qualify; phases out above $100,000 of income ($200,000 joint).
Category
- Personal Tax Deductions