Tesla Model Y Loan Interest Deduction Calculator
For the best-selling EV in America — financed, not leased.
The short answer: At the numbers below, the deduction is $2,900 — $348 back at 12% ($13 per paycheck).
New, US-assembled vehicle only
Modified Adjusted Gross Income
Car Loan Interest Deduction
$2,900
✅ 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.
EV Credit Gone, Interest Deduction Here
OBBBA ended the EV purchase credit after September 2025 — the loan interest deduction is the remaining federal perk for EV buyers.
- • Financed purchase: interest deductible up to $10,000
- • Lease: embedded rent charge doesn't qualify
- • High-income EV buyers: check the MAGI phase-out first
Worked Example
MFJ Model Y buyer, $2,900 of annual interest.
- • Deduction $2,900; savings $348 at 12%
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Frequently Asked Questions
Is there still a federal EV tax credit on a Model Y?
No — the OBBBA terminated the clean-vehicle credit for purchases after September 30, 2025. Financing one now, the loan interest deduction is what remains.
Does Model Y loan interest deduct the same as gas cars?
Yes — the deduction is vehicle-agnostic: qualified loan interest up to $10,000.