Car Loan Interest Tax Deduction
New Honda Purchases May Qualify for a Tax Break!
If you financed a new Honda this year, you could be eligible for a temporary federal tax deduction on the interest paid on your auto loan.
What Is the Car Loan Interest Deduction?
Qualified buyers can deduct up to $10,000 per year in interest paid on an eligible vehicle loan from their taxable income-potentially lowering your tax bill.
Which Vehicles and Loans Qualify?
To be eligible, your vehicle must:
- Be a new car, minivan, van, SUV, or pick-up truck with a gross vehicle weight rating of less than 14,000 pounds purchased (not leased) on or after January 1, 2025
- Be assembled in the U.S.
- Be used for personal (not business) purposes
- Be financed through a dealer, bank, or credit union
Who Can Claim the Deduction?
You may qualify if your income falls within these limits:
- Taxpayers with modified adjusted gross income (MAGI) less than $100,000
- Married couples filing jointly: MAGI of $200,000 or less
- If your income is above those thresholds, the deduction gradually phases out.
Contact
Get the Details Right
Every tax situation is different. We recommend speaking with your tax advisor to confirm eligibility and understand how the deduction could apply to you. If you're unsure where your vehicle was assembled, use the NHTSA VIN Decoder.
Looking for a new Honda?
Stop by Norris Honda and take advantage of this limited-time benefit while it lasts!
Shop New
Civic HatchbackStarting MSRP $27,450
Civic Hybrid HatchbackStarting MSRP $30,495
Civic Type R HatchbackStarting MSRP $45,895
CR-V SUVStarting MSRP $32,420
CR-V Hybrid SUVStarting MSRP $35,630
HR-V SUVStarting MSRP $26,200
Passport SUVStarting MSRP $44,750
Pilot SUVStarting MSRP $40,200
Prologue SUVStarting MSRP $47,400
Accord SedanStarting MSRP $28,295
Accord Hybrid SedanStarting MSRP $33,655
Civic SedanStarting MSRP $24,595
Civic Hybrid SedanStarting MSRP $29,295
Civic Si SedanStarting MSRP $30,995
Ridgeline TruckStarting MSRP $40,150
Odyssey VanStarting MSRP $42,220
Although every reasonable effort has been made to ensure the accuracy of the information contained in this site, absolute accuracy cannot be guaranteed. This site, and all information and materials appearing on it, are presented to the user "as is" without warranty of any kind, either express or implied. Confirm all information with your tax professional and reference the IRS website for complete information.
