US Tax Calculators
Auto Loan Interest Deduction Calculator
Estimate your federal deduction on interest for a new, US-assembled personal vehicle loan, under the new law.
This is a rough estimate for education, not tax advice. It assumes your loan and vehicle meet the eligibility rules below; check your loan documents and your lender's Form 1098-VLI. Nothing you type is sent anywhere.
How the auto loan interest deduction works
The OBBBA created a new above-the-line deduction for interest paid on a loan used to buy a new (not used) personal-use vehicle with final assembly in the United States, for loans originated after December 31, 2024, in tax years 2025 through 2028. The deduction is capped at $10,000 a year and phases out by $200 for every $1,000 of MAGI above $100,000 (single, head of household) or $200,000 (married filing jointly). Qualifying vehicles include cars, SUVs, pickup trucks, minivans, vans and motorcycles under 14,000 pounds; the loan must be secured by the vehicle.
Frequently asked questions
Does a used car qualify?
No, only new vehicles with final assembly in the United States qualify.
Does a lease qualify?
No, this deduction is for loan interest on a purchase, not lease payments.
How will I know the interest amount?
Starting with the 2026 tax year, lenders must send Form 1098-VLI if you paid at least $600 of qualifying interest during the year.
Related: the loan calculator and the quarterly tax estimator.