Car loan interest deduction · final IRS regs Sept 2026

Which cars qualify for the car loan interest deduction?

The rule is "final assembly in the United States" — and the badge on the hood tells you nothing. Here's the brand-by-brand breakdown, the popular models that fail, and the 60-second check to do before you sign.

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The five tests: (1) new — you're the first owner; (2) final assembly in the US; (3) car, SUV, minivan, van, pickup or motorcycle under 14,000 lb GVWR; (4) personal use; (5) a loan (not a lease) taken out after Dec 31, 2024. Pass all five and up to $10,000 a year of interest is deductible through 2028, subject to the income phase-out. Estimate your deduction →

How to check any vehicle in 60 seconds

  1. Window sticker. Every new car's Monroney label has a "Final Assembly Point" line with the city and country. That line is legally binding, and the IRS regs say you can rely on it.
  2. VIN, first character. 1, 4 or 5 = United States. 2 = Canada. 3 = Mexico. J = Japan. K = Korea. W = Germany. S = UK. L = China. The IRS also accepts the plant code in the VIN as proof.
  3. NHTSA decoder. Type the full VIN at nhtsa.gov/vin-decoder and read "Plant Country."

Do this on the specific vehicle you're buying, not the model in general. Many popular models are built in more than one country, and two identical trucks on the same lot can differ. The IRS will not publish a list of qualifying vehicles; the VIN goes on your tax return.

Use the VIN quick-check →

Brand by brand

Model years 2025–2026, based on NHTSA American Automobile Labeling Act filings, the Cars.com American-Made Index, and manufacturer plant data. "Check VIN" means the model is built in more than one country. Verify your unit's sticker — this list is a guide, not a guarantee.

Ford / Lincoln

Qualifies: F-150 (Dearborn MI, Kansas City MO), F-250/F-350 Super Duty (Kentucky, Ohio — check GVWR stays under 14,000 lb), Expedition, Navigator, Explorer, Aviator, Bronco, Ranger, Mustang, Transit. Does not: Maverick, Bronco Sport, Mustang Mach-E (all Mexico), Nautilus (China).

Chevrolet / GMC / Buick / Cadillac

Qualifies: Tahoe, Suburban, Yukon, Escalade (Arlington TX), Traverse, Enclave, Acadia (Lansing MI), Colorado, Canyon (Missouri), Silverado HD, Sierra HD (Flint MI), Corvette, CT4, CT5, Lyriq, Vistiq, Silverado EV, Sierra EV, Hummer EV, Express, Savana. Does not: Equinox, Equinox EV, Terrain, Blazer, Blazer EV, Optiq (Mexico); Trax, Trailblazer, Envista, Encore GX (Korea); Envision (China). Check VIN: Silverado 1500 and Sierra 1500 — built in Fort Wayne, Indiana and in Mexico and Canada.

Ram / Jeep / Dodge / Chrysler

Qualifies: Ram 1500 (Sterling Heights MI), Wrangler, Gladiator (Toledo OH), Grand Cherokee (Detroit), Wagoneer, Grand Wagoneer, Durango. Does not: Ram 2500/3500 heavy duty and ProMaster (Mexico), Jeep Compass and Cherokee (Mexico), Chrysler Pacifica and Dodge Charger (Canada).

Tesla, Rivian, Lucid

All qualify. Every Tesla (Fremont CA, Austin TX), every Rivian (Normal IL), every Lucid (Casa Grande AZ).

Toyota / Lexus

Qualifies: Camry (Kentucky), Corolla Cross (Alabama), Highlander, Grand Highlander, Sienna, Lexus TX (Indiana), Tundra, Sequoia (Texas). Does not: Tacoma (now built entirely in Mexico), 4Runner, Land Cruiser, Prius, Crown, GR86, most Lexus models (Japan or Canada). Check VIN: RAV4 (Kentucky, Ontario and Japan), Corolla sedan (Mississippi or Japan).

Honda / Acura

Qualifies: Accord (Ohio), Odyssey, Pilot, Passport, Ridgeline (Alabama), Acura MDX, RDX, TLX, Integra (Ohio). Does not: HR-V, Prologue, Acura ADX (Mexico). Check VIN: Civic (Indiana, Ontario or Japan) and CR-V (Ohio/Indiana or Ontario).

Nissan / Infiniti

Qualifies: Rogue, Pathfinder, Murano, QX60 (Tennessee), Altima, Frontier (Mississippi). Does not: Sentra, Kicks, Versa (Mexico); Armada, Leaf, Ariya, Z, QX80 (Japan).

Hyundai / Kia / Genesis

Qualifies: Santa Fe, Santa Cruz, Genesis GV70 (Alabama), Ioniq 5, Ioniq 9 (Georgia), Kia Telluride, Sorento, Sportage, EV6, EV9 (Georgia). Does not: Palisade, Kona, Venue, Sonata, Elantra, Kia K5, Carnival, Niro, Seltos, most Genesis (Korea). Check VIN: Tucson (Alabama or Korea); Sportage and Sorento hybrids (Korea).

Subaru

Qualifies: Ascent, Forester, Crosstrek (Indiana). Does not: 2026 Outback (moved to Japan), Impreza, Legacy, WRX, BRZ, Solterra. Check VIN: Forester and Crosstrek — some units still come from Japan.

Mazda

Qualifies: CX-50 (Alabama). Does not: Everything else — Mazda3, CX-30, CX-5, CX-70, CX-90, Miata.

Volkswagen / Audi

Qualifies: Atlas, Atlas Cross Sport, ID.4 (Tennessee). Does not: Jetta, Tiguan, Taos (Mexico), Golf, ID. Buzz, all Audis.

BMW, Mercedes-Benz, Volvo

Qualifies: BMW X3, X4, X5, X6, X7, XM (South Carolina); Mercedes GLE, GLS, EQE SUV, EQS SUV (Alabama), Sprinter (South Carolina); Volvo EX90 and Polestar 3 (South Carolina). Does not: BMW sedans, X1, X2, i-series, all Minis; Mercedes sedans, GLA, GLB, GLC; Volvo XC90, XC60, XC40, EX30.

The surprises worth repeating

  • A Toyota Camry, Honda Accord, Kia Telluride, BMW X5 or Mercedes GLE qualifies. A Ford Maverick, Chevy Equinox, Jeep Compass, Ram 2500 or Chrysler Pacifica does not.
  • Tacoma moved to Mexico; Tundra stays in Texas.
  • Subaru flipped: the Outback left Indiana for Japan; the Forester and Crosstrek moved in.
  • Heavy-duty pickups: the assembly test isn't the only one — a dually F-350 or Silverado 3500 can hit exactly 14,000 lb GVWR, and the rule says under 14,000. Check the door label.
  • EVs: Tesla, Rivian, Lucid, Lyriq, Ioniq 5/9, EV6/EV9, ID.4, Silverado EV, EX90 qualify. Mach-E, Blazer EV, Equinox EV, Prologue, Leaf, Ariya, Solterra don't.

Get it in writing

Before signing, ask the dealer to show you the Final Assembly Point on the sticker of the exact vehicle, and keep a photo of the sticker with your loan documents. Your lender will send a Form 1098-VLI showing the interest paid (starting with tax year 2026), and the VIN goes on Schedule 1-A. If the vehicle turns out to have been built elsewhere, there's no deduction, and no way to fix it after the sale.

Calculate your car loan interest deduction →

Frequently asked questions

Which cars qualify?

New, US-assembled, personal-use vehicles under 14,000 lb, financed with a loan after Dec 31, 2024. Check the window sticker's Final Assembly Point or the VIN.

Do Teslas qualify?

Yes, all of them.

Does a Toyota qualify?

Depends on the model: Camry, Highlander, Tundra, Sequoia, Sienna and Corolla Cross yes; Tacoma, 4Runner, Prius no; RAV4 check the VIN.

Does a foreign brand ever qualify?

Yes — assembly location is the only test. Honda, Toyota, Hyundai/Kia, BMW, Mercedes, VW, Nissan, Subaru and Mazda all build some models in US plants.

What if the dealer says it qualifies but the VIN starts with 3?

The VIN wins. A 3 means Mexico. Don't rely on a salesperson's word.

Does a motorcycle qualify?

Yes, if it's new, US-assembled (most Harley-Davidsons and Indians are) and financed with a qualifying loan.

Sources