The short answer
Sometimes. For 2025 through 2028, you can deduct up to $10,000 a year of interest on a loan for a new car, SUV, van, pickup or motorcycle bought after 2024, if it was assembled in the U.S. and is for personal use.
Last reviewed: October 2026
It has to be
- New. Used vehicles don't qualify.
- Bought after December 31, 2024 with a loan secured by the vehicle. Leases don't count.
- Final assembly in the U.S. The vehicle's VIN and window sticker show this.
- For personal use, and under 14,000 pounds.
Limits
- Up to $10,000 of interest a year.
- It shrinks once income goes above $100,000 ($200,000 married filing jointly).
- You can take it whether or not you itemize.
- You'll need the vehicle's VIN on your return.
Using the car for gig work? Business use is handled differently. See What can I deduct as a delivery or rideshare driver?
Official source: IRS: One, Big, Beautiful Bill provisions.
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Disclaimer: This page is general information, not tax advice. Every situation is different, and tax rules change. Reading this page doesn't make you a client.