Truck Loan Interest Deduction Calculator
Big truck loans mean big interest. Find out how much of it is deductible under the OBBBA — pre-loaded with typical full-size pickup numbers.
New, US-assembled vehicle only
Modified Adjusted Gross Income
Car Loan Interest Deduction
$4,200
✅ 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.
Trucks: The Easiest Vehicle to Qualify
America's best-selling vehicles are also mostly built in America. If you financed a full-size pickup in 2025, odds are good you qualify:
- • Ford F-150 / Super Duty → US-assembled ✓
- • Chevrolet Silverado 1500 / GMC Sierra 1500 → US-assembled ✓
- • RAM 1500 (new gen) → US-assembled ✓
- • Toyota Tundra → US-assembled ✓
- • Silverado HD (Mexico plant), RAM Classic → not qualified ✗
Verify with the first character group of your VIN or the window sticker's final assembly point — not the brand.
Worked Example: Crew Cab on a 72-Month Note
The Nguyens financed a $58,000 F-150 at 7.4% over 72 months. Year-one interest: about $4,200. Married filing jointly, MAGI $92,000.
- • Interest under the $10,000 cap: $4,200
- • 12% bracket → $504 back in year one
- • 22% bracket → $924 back
Pull the exact interest figure from your loan statement or amortization schedule — year one is always the biggest.
The Income Cap Catches Many Truck Buyers
Households financing $60k+ trucks often exceed $200,000 MAGI — above the phase-out, the deduction is gone. If your income is near the line, note that the MAGI test is based on the year you claim, not the year you bought the truck. A lower-income year (retirement, job change) can resurrect deductions on interest still being paid.
Frequently Asked Questions
Can I deduct pickup truck loan interest under the OBBBA?
Yes, if the truck was assembled in the United States, the loan was signed in 2025–2028, and your MAGI is under $100,000 (single) or $200,000 (MFJ). Up to $10,000 of interest per year is deductible. Most full-size pickups sold in America are US-assembled, making trucks one of the easiest vehicles to qualify.
Which trucks are US-assembled?
Ford F-Series (Dearborn and Kansas City), Chevrolet Silverado 1500 / GMC Sierra 1500 (Fort Wayne, Indiana; heavier Silverados come from Mexico), RAM 1500 (Sterling Heights, Michigan), and Toyota Tundra (San Antonio) are commonly US-assembled. Mexican-built trucks like some Silverado HDs and the RAM Classic do not qualify — check your VIN's plant code.
Does a work truck qualify, or only personal vehicles?
The deduction covers passenger vehicle loans — pickups used personally qualify. If you use the truck for business, talk to a tax pro: business-interest deduction routes may interact with this one, and you cannot double-dip the same interest dollars.
What about big $70,000+ truck loans?
Truck prices have exploded — but the interest cap stays $10,000/year. A $70,000 truck at 8% generates roughly $5,400 of interest in year one, so most buyers stay under the cap anyway.
Is there an income limit?
Yes — MAGI under $100,000 (single) / $200,000 (MFJ) with a phase-out above. Many buyers financing $70k trucks earn more than that; run your numbers before counting on it.
Lease payments — do those count?
No. The deduction is for interest on a vehicle loan you signed, not lease charges. Leased trucks have no deductible interest under this provision.