Car loan interest deduction calculator

Already checked your vehicle? Enter your annual interest and tax details, then confirm the eligibility conditions.

Estimate your deduction

For individual taxpayers. A VIN cannot verify purchase history, loan terms, or income.

Tax yearFiling statusPurchase dateOriginal purchase loan date

Original use began with you (purchased new)At loan origination, expected personal use was more than 50%Purchase loan is secured by a first lien on this vehicleLender is not a related partyRoad-use motor vehicle with at least two wheels, subject to the Clean Air ActYou originally incurred this loan (or succeeded by reason of death)

Vehicle requirements · VIN or label confirmation required

Select Yes only after checking the VIN result or official vehicle label. Incomplete data is not a pass.

Final assembly in the United StatesGVWR is less than 14,000 poundsVehicle is a car, minivan, van, SUV, pickup truck, or motorcycle

Modified adjusted gross income ($)AGI plus exclusions under IRC §§911, 931 and 933.Annual interest paid ($)Interest for this tax year, not monthly payments or principal.

Refinancing, negative equity, business interest, or multiple vehicles

Refinancing of an eligible original loan can qualify up to its outstanding balance. Exclude interest on cash-out proceeds, financed negative equity, and unrelated purchases. A change of borrower generally fails unless by reason of death.

Qualifying portion of interest (%)Interest already deducted elsewhere ($)

No double deduction. For multiple qualifying vehicles, enter combined eligible interest and confirm every vehicle meets the requirements. The $10,000 cap is per return. Complex allocations need professional review.

How the deduction is calculated

First exclude nonqualifying interest and interest deducted elsewhere. Cap combined qualifying interest at $10,000 per return. Then subtract $200 for every $1,000, or fraction of $1,000, that MAGI exceeds $100,000 ($200,000 for joint returns), stopping at zero.

An IRS example

$7,000 in qualifying interest and $124,200 MAGI for a single filer: $24,200 above the threshold rounds up to 25 steps. The reduction is $5,000, leaving a $2,000 deduction.

A deduction reduces taxable income. Actual tax savings depend on your tax situation; this is not a dollar-for-dollar credit.

Official sources

Rules reviewed October 7, 2026. T.D. 10054 was published September 2026, is effective November 9, 2026, and specifies applicability to tax years 2025–2028. Check current IRS guidance when filing.

Educational estimates only; not tax, legal, or financial advice. This independent tool is not affiliated with the IRS or NHTSA and does not establish eligibility or file your return.