Auto Loan Interest Deduction (2025–2028)
Do You Qualify For The New Auto Loan Interest Deduction?
Whether you purchased a new Nissan in 2025 or plan to add one to your Bridgeport garage this year, you may be eligible for a tax deduction under the latest federal tax law. With the passing of the H.R.1 bill, Fairmont buyers can deduct up to $10,000 a year on interest paid on qualifying auto loans. Learn more about this auto loan interest deduction and how you can take advantage of it with this comprehensive guide from Harry Green Nissan.
Up To $10,000 In Annual Interest Deductions
Eligible buyers who purchase a new vehicle for their commutes through Morgantown can deduct up to $10,000 per year in auto loan interest from their taxable income.
Available For 2025–2028 Tax Years
The auto loan interest deduction is available only for interest paid between 2025 and 2028. In addition, the loan must have originated after December 31, 2024.
U.S. Assembly Required
Not all auto loans are covered by this new deduction. To qualify, the vehicle must be a personal-use passenger vehicle that underwent final assembly in the United States.
Eligibility Requirements
To qualify for the auto loan interest deduction, the transaction must meet the following criteria:
- The vehicle must be purchased new. Leased vehicles and pre-owned vehicles do not qualify.
- The loan must have originated after December 31, 2024
- The vehicle must be for personal use only.
- The taxpayer must provide the vehicle's VIN on their tax return.
Note: If your auto loan was refinanced after the date above, interest paid on the refinanced amount is still generally eligible for the deduction. The auto loan deduction is also available for both itemizing and non-itemizing taxpayers.
Qualifying Vehicles
The auto loan interest deduction only applies to cars, minivans, vans, SUVs, pickups, and motorcycles that:
- Have a gross vehicle weight rating (GVWR) of less than 14,000 pounds
- Underwent final assembly in the United States
While Nissan is headquartered in Japan, the brand operates several U.S. manufacturing facilities that produce eligible models under these criteria. Use the NHTSA VIN decoder to determine whether your vehicle qualifies, or contact our finance team for more information.
Deduction Limits By Filing Status & Income
| Filing Status | Income | Maximum Deduction |
|---|---|---|
| Single | Up to $100,000 | Up to $10,000 |
| Single | $100,001–$149,000 | Partial |
| Married Filing Jointly | Up to $200,000 | Up to $10,000 |
| Married Filing Jointly | $200,001–$249,000 | Partial |
| All Filers (Single) | More than $149,000 | No Deduction |
| All Filers (Married Filing Jointly) | More than $249,000 | No Deduction |
Learn More At Harry Green Nissan
Ready to start shopping for your next Nissan? Contact Harry Green Nissan online or by phone at (304) 624-6304, and our team will schedule an appointment at our Clarksburg dealership to help you find a qualifying model.
