Who qualifies
- Loans taken out after Dec 31, 2024 for a new car, SUV, pickup, van or motorcycle under 14,000 lb, with final assembly in the US, for personal use.
- Up to $10,000 of interest a year, 2025–2028; reduced by $200 per $1,000 of MAGI over $100,000 ($200,000 joint).
- Leases and used vehicles do not qualify. Put the VIN on your return.
FAQ
Can I deduct interest on a used car?
No. The vehicle’s original use must start with you.
Sources (checked Nov 6, 2026): IRS FS-2025-03; P.L. 119-21 sec. 70203.