is a "new" car for me 's loan deductible under the new tax law?

rostripes1951 · ‎March 24, 2026

is a used car loan deductible?

MinhT1

No.

Interest on a used car loan is not deductible.

The OBBBA has introduced a new deduction for car loan interest paid for new cars you bought for personal use between 2025 and 2028.

The deduction is up to $10,000 if your income is under $100,000 (or $200,000 if MFJ). The deduction is gradually phased out for higher incomes.

For the requirements of this deduction, please read this TurboTax Help article.

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xmasbaby0

No. The deduction for car loan interest can only be used for a certain brand new cars purchased in 2025; you cannot use interest on a used car for the deduction.

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**