02/14/2026
Key Tax Year 2025 Details Regarding Vehicle Interest!
Deduction Limit: Up to $10,000 of interest paid per year.
Income Limits: The deduction begins to phase out if your Modified Adjusted Gross Income (MAGI) is over $100,000 ($200,000 for married filing jointly).
How to Claim: You must include the Vehicle Identification Number (VIN) on your tax return.
Business Use: If the vehicle is used for business, different, more generous rules (Section 179) may apply instead.
Qualifying Vehicle Criteria
To be eligible, the vehicle must meet all the following:
Type: New car, SUV, minivan, van, or motorcycle.
Usage: Primarily for personal use (more than 50%).
Weight: Gross Vehicle Weight Rating (GVWR) of less than 14,000 pounds.
Assembly: Final assembly in the United States.
Purchase Type: Purchased new (not used/pre-owned) and not leased.
Examples of Qualifying Vehicles (Assembled in the U.S.)
Approximately 50% of vehicles sold in the U.S. qualify. A quick way to identify them is if the VIN starts with 1, 4, or 5.
Chevrolet: Equinox, Traverse, Tahoe, Suburban, Silverado, Trailblazer, Bolt EV.
GMC: Acadia, Yukon, Sierra.
Ford: F-150, Explorer, Mustang, Expedition, Escape.
Tesla: Model 3, Model Y, Model S, Model X (all generally US-assembled).
Toyota: Camry, Highlander, Tundra, Sequoia (some models, check VIN).
Honda: CR-V, Pilot, Passport, Ridgeline (some models, check VIN).
Nissan: Altima, Sentra, Frontier, Murano (some models, check VIN).
Buick: Encore GX, Enclave, Envista.
Jeep: Grand Cherokee, Wrangler.
Ram: 1500.
Note: Assembly locations can change by model year and trim. Always check the window sticker or use the NHTSA VIN Decoder to verify the final assembly point.
Vehicles That Do NOT Qualify
Used vehicles.
Leased vehicles.
Vehicles assembled outside the U.S..
Vehicles with a GVWR over 14,000 lbs.
ATVs, trailers, or campers.
If you need assistance call Cissy to do your taxes!
