The One Big Beautiful Bill Act (OBBBA)
Subject: Good News: Your auto loan interest could now be tax-deductible! 🚗
If you recently financed a new vehicle—or are planning to buy one soon—a new federal tax law could put money back in your pocket.
Under the One, Big, Beautiful Bill Act (OBBB), you may be eligible to deduct up to $10,000 per year in auto loan interest on your federal tax return. Best of all, this is an "above-the-line" deduction, meaning you can claim it even if you do not itemize your taxes.
Does your loan qualify?
To be eligible for this tax benefit, your auto loan must meet the following criteria:
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The Vehicle: Must be a new, personal-use vehicle (car, SUV, pickup, minivan, van, or motorcycle) under 14,000 lbs.
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Made in the USA: The vehicle’s final assembly must have taken place in the United States.
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The Timing: The loan must have been opened after December 31, 2024.
What you need to do:
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Keep track of your VIN: You will be required to report your vehicle’s Vehicle Identification Number (VIN) on your tax return to claim the deduction.
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Watch your mail/inbox: We will provide you with the required annual tax statement detailing the qualifying interest paid on your loan.
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Check income limits: The deduction phases out for single filers with income between $100,000–$150,000, and joint filers between $200,000–$250,000.
Note: Tax laws can be complex. We highly recommend consulting a certified tax professional to see exactly how these changes apply to your specific financial situation.
Have questions about your current auto loan or looking to pre-approve a new one? Email us on our webpage or give us a call!
