The new car loan interest deduction can reduce your taxable income by as much as $10,000 a year, but you’ll need to buy a new luxury vehicle to get the full benefit.

14 hours ago · Many Americans can take advantage of President Trump’s deduction on auto loan interest, but the tax break will provide only modest savings.

Jul 23, 2025 · President Donald Trump rolled out the idea for a new tax break on car loans during a 2024 campaign stop in Detroit. Here's how the new law works.

Nov 7, 2025 · Now, a new tax break could ease that burden by allowing borrowers to deduct auto loan interest from their taxes. In Trump’s new so-called " big, beautiful bill," the GOP offers a tax deduction ...

Jul 14, 2025 · The tax and spending bill signed into law by President Trump on July 4 includes a limited tax break for car buyers.

Jun 24, 2025 · Middle-income households that buy luxury cars would be able to claim the full financial benefit of a $10,000 tax deduction on car loan interest.

Jul 18, 2025 · A Trump-backed tax holiday on auto loan interest payments could save middle-class Americans several hundred dollars apiece on new U.S.-built vehicle purchases through 2028.