Check Auto Loan Tax Deduction Eligibility

How the Deduction Works

The 'One Big Beautiful Bill' allows eligible taxpayers to deduct the interest paid on auto loans for new vehicles assembled in America. This can significantly reduce your taxable income, leading to substantial savings on your federal tax bill. An estimated 3.5 million new vehicle loans could be eligible for the tax break this year.

Potential Savings

Your savings depend on your loan amount, interest rate, and tax bracket. For example, a person in the 22% tax bracket who can claim a $3,000 deduction would save $660 on their taxes. A buyer with a subprime credit score (around 9.3% interest) could save about $2,200 over four years on an average-priced vehicle.

Deduction Requirements