Washington just tossed drivers a headline that sounds like a pit crew miracle: “no tax on car loan interest.” Starting in tax year 2025, the One Big Beautiful Bill Act (OBBBA) lets eligible taxpayers deduct up to $10,000 a year in interest on a ...
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Is the New Car Loan Tax Break Real or Just Smoke?
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Subscribe22 DEC 2025 / ACCOUNTING & TAXES
The US government has introduced the One Big Beautiful Bill Act (OBBBA) which allows certain taxpayers to deduct up to $10,000 a year in interest on qualified car loans from 2025-2028. The policy appears to be a strategic incentive to encourage the purchase of new vehicles assembled domestically, but is in truth limited by strict eligibility criteria that includes specific income limits and loan conditions.
Washington just tossed drivers a headline that sounds like a pit crew miracle: “no tax on car loan interest.” Starting in tax year 2025, the One Big Beautiful Bill Act (OBBBA) lets eligible taxpayers deduct up to $10,000 a year in interest on a ...
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