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Auto Loan Tax Reduction
New Auto Loan interest deduction. Does your vehicle qualify?
Understanding the New Deduction
Starting with the 2025 tax year, a new federal law—the One Big Beautiful Bill Act (OBBBA)—allows eligible taxpayers to deduct up to $10,000 annually in interest paid on qualified auto loans. This deduction applies to new vehicles purchased for personal use and assembled in the United States.
Vehicle Qualification Requriements
Your vehicle must meet all of these requirements:
- Purchased after December 31, 2024
- New purchase (not used or leased)
- Final assembly in the United States
- Gross vehicle weight rating (GVWR) under 14,000 lbs
- Used for personal, not commercial, purposes
- Secured loan with the vehicle as collateral
Check Your Vehicle's Eligibility
Use the IRS Vehicle Eligibility Tool
Enter your Vehicle Identification Number (VIN) to instantly check if your car meets the final assembly requirement.
💡 Quick Tip
Vehicles with VINs starting with 1, 4, or 5 are typically assembled in the U.S.
Access IRS VIN Decoder Tool
Getting Your Interest Statement
If you paid $600 or more in interest on your qualifying auto loan during 2025, we'll provide you with a statement showing the total interest paid.
Access your information through:
- Online Banking account
- Annual loan statement
- Customer Service at 800-222-7228
Log In to Online Banking