72-Month Car Loan Interest Deduction Calculator
For the most common loan term in America.
The short answer: At the numbers below, the deduction is $3,600 — $792 back at 22% ($30 per paycheck).
New, US-assembled vehicle only
Modified Adjusted Gross Income
Car Loan Interest Deduction
$3,600
✅ You qualify for the full deduction
⚠️ This calculator provides estimates for informational and educational purposes only. It is not tax advice. Results are based on the One Big Beautiful Bill Act (OBBBA) and IRS Schedule 1-A. Consult a qualified tax professional for your specific situation.
Long Terms Front-Load Interest
72-month terms mean most interest hits in years 1–3 — those are your big-deduction years.
- • Deduct actual interest paid each calendar year
- • Years 4–6: shrinking interest, shrinking deduction
- • Cap $10,000/year — long terms rarely approach it
Worked Example
Single borrower, $3,600 of year-one interest on a 72-month loan.
- • Deduction $3,600; $792 at 22%
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Frequently Asked Questions
Does a 72-month loan qualify for the OBBBA deduction?
Yes — term length doesn't matter; annual interest paid up to $10,000 is deductible.
Should I take a longer loan for a bigger deduction?
No — the deduction saves cents per dollar of interest. Never pay interest for a tax deduction.