"No Tax on Car Loan Interest"
Tax Deduction Guide for Vehicle Purchases
miscentavos.com
Maximum Annual Deduction
$10,000
Per year on qualified car loan interest
What Qualifies vs. What Doesn't
Qualifies
- New vehicles only (originally used by you)
- Loan originated after Dec 31, 2024
- Personal use vehicle
- Loan secured by lien on vehicle
- Final assembly in the United States
Does NOT Qualify
- Used vehicles
- Lease payments
- Loans before Jan 1, 2025
- Vehicles assembled outside US
- Unsecured loans
Qualifying Vehicle Types
Car
Minivan / Van
SUV
Pick-up Truck
Motorcycle
< 14,000 lbs
Key Requirements
Your Vehicle Must Meet ALL of These:
Final assembly in USA
Under 14,000 lbs GVWR
Brand new vehicle
Personal use only
Loan secured by lien
Loan after Dec 31, 2024
How to Verify US Assembly
🏷️ Two Ways to Confirm:
Option 1: Check the vehicle information label attached to the vehicle at the dealer's premises. It will list the location of final assembly.
Option 2: Use the Vehicle Identification Number (VIN):
- Visit NHTSA VIN Decoder website
- Enter your vehicle's VIN
- Check the "plant of manufacture" information
- Verify the plant is located in the United States
Income Phase-Out Limits
Deduction begins to phase out at these income levels:
Single Filers
$100K
Joint Filers
$200K
Important Requirements
- Must include Vehicle Identification Number (VIN) on tax return
- VIN must be included for every year you claim the deduction
- Married taxpayers must file jointly to claim
- Available to both itemizers and non-itemizers