Vehicle deduction

Forum|Forum|5 months ago
January 14, 2026
1 reply
18 views

I drive a 2022 Subaru Legacy. It has around 30,000 miles on it. I am currently financing, so I have monthly payments. Am I eligible for the tax deduction under the one big beautiful bill?

Ask the Experts - OBBBA - Jan 2026

RogerD1

Level 6

So no, your vehicle would not qualify for the car interest loan deduction introduced under the One big Beautiful Bill.

Here are some key factors in determining the car loan interest deduction:

In order to claim the deduction, the following criteria must be met:

The loan originated after December 31, 2024
The vehicle must be a new vehicle for which the taxpayer is the first owner
The vehicle must be for personal use (or a mix of business and personal use, provided personal use is over 50%)
The vehicle must have final assembly in the US. Vehicles manufactured in the US will have Vehicle Identification Number (VIN), with a first digit of 1,4, or 5
Eligible vehicles include cars, minivans, SUVs, pickup trucks or motorcycles with a gross vehicle weight rating (GVWR) of less than 14,000 pounds

The amount of the deduction is capped at $10,000 (or $5,000 for Married Filing Separately) and begins to phase out at incomes above $100,000 (or $200,000 for Married Filing Jointly) and completely phases out for incomes above $150,000 (or $250,000 for Married Filing Jointly)

[Edited 1/15/26, 8:27 AM PST]

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