Credit Union Car Loan Interest Deduction Calculator
For the cheapest loans in the market — plus a deduction.
The short answer: At the numbers below, the deduction is $2,300 — $506 back at 22% ($19 per paycheck).
New, US-assembled vehicle only
Modified Adjusted Gross Income
Car Loan Interest Deduction
$2,300
✅ 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.
Cheap Rate Plus Deduction
Credit unions routinely undercut dealers by 2–4 points; the deduction stacks on top.
- • Interest to $10,000 deductible
- • Statements show year-to-date interest — your documentation
- • Lower rate = less interest = smaller deduction but more savings. Always take the lower rate.
Worked Example
Single borrower, $2,300 of CU interest.
- • Deduction $2,300; $506 at 22%
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Frequently Asked Questions
Do credit union car loans qualify?
Yes — any qualified vehicle loan qualifies, and CU auto loans are the standard case.
Lower rate means smaller deduction — bad?
No — a deduction returns only a fraction of interest paid. Less interest is always better.