OBBBA 2025-2028
Auto Loan Interest Calculator
Calculate your car loan interest deduction. Save up to $10,000 per year.
Calculate Your Savings
Enter your details below to estimate your tax deduction.
What is the Auto Loan Interest Deduction?
The One Big Beautiful Bill Act (OBBBA) introduced a new above-the-line tax deduction for auto loan interest on qualifying new vehicles purchased between 2025 and 2028. You can deduct up to $10,000 of car loan interest annually without itemizing.
Who Qualifies?
- New vehicle - Original use must begin with you
- US-assembled - Final assembly in the United States
- Weight limit - Under 14,000 lbs GVWR
- Personal use - Not for business purposes
Income Limits
| Filing Status | Full Deduction | Phaseout Range |
|---|---|---|
| Single | Under $100,000 | $100K - $150K |
| Married Filing Jointly | Under $200,000 | $200K - $250K |
| Head of Household | Under $100,000 | $100K - $150K |