How much qualified car loan interest can I deduct?
Estimate the new qualified passenger vehicle loan interest deduction for 2025, 2026, or 2027 planning. Enter qualifying interest, Schedule 1-A MAGI, and filing status to estimate the deduction after the $10,000 cap and phaseout.
car loan interest deduction calculator
Quick answer
Qualified passenger vehicle loan interest can be deductible up to $10,000 before a MAGI phaseout, but the loan and vehicle must meet several Schedule 1-A requirements.
Also answers
- no tax on car loan interest
- vehicle loan interest deduction
- Schedule 1-A car loan
- qualified passenger vehicle loan interest
Good fit when
- New vehicle buyers
- Personal-use vehicle loan planning
- Schedule 1-A deduction estimates
Have ready
- Filing status
- Schedule 1-A MAGI
- Qualified vehicle loan interest
Result you get
Estimated qualified car loan interest deduction after phaseout.
How this calculation works
- Subtracts any vehicle interest already deducted on Schedule C, E, or F.
- Caps qualified passenger vehicle loan interest at $10,000.
- Uses the $100,000 MAGI threshold, or $200,000 for joint filers.
- Reduces the deduction by $200 for each $1,000, rounded up, of MAGI over the threshold.
Common mistakes and caveats
- The loan generally must originate after December 31, 2024.
- The vehicle must be new to the taxpayer, personal use, secured by a lien, under 14,000 pounds GVWR, and finally assembled in the United States.
- The VIN must be reported on Schedule 1-A.
Last updated & sources
Last updated June 22, 2026.
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