Car Loan Interest Deduction Calculator (2025–2028)
The OBBBA car-loan interest deduction permits an above-the-line deduction of up to $10,000/yr of interest on a loan for a US-assembled vehicle for tax years 2025 through 2028.
Guidance, not advice. This calculator runs the rules as published, it doesn't assess your circumstances. Your actual tax may be affected by factors it doesn't cover (deductions, credits, filing status nuances, state-specific adjustments). Always seek financial or tax advice from a qualified CPA, Enrolled Agent, or tax attorney, or contact the IRS. Read our editorial scope →
Temporary provision — expires after tax year 2028
Temporary provision — expires after tax year 2028. Without further legislation, this benefit is not available for 2029 and beyond.
Your situation
Above-the-line deduction capped at $10,000 of annual interest on a loan for a US-assembled qualifying vehicle.
$
$
Your estimated savings
Capped interest
$2,400
Federal tax savings (22% bracket)
$528
Above-the-line
This deduction is above-the-line, so you receive it whether you take the standard deduction or itemize. It also reduces AGI for downstream phase-outs (Roth IRA, IRA deduction, premium tax credit).
Original-use, personal-use vehicles only. Leased vehicles, used vehicles, RVs, and business-use vehicles do not qualify. The lender must report interest on Form 1098 equivalent.