10 Major 2025 Tax Changes You Need to Know Before Filing

2025 Tax Changes You Need to Know Before Filing

7. Car Loan Interest Is Now Deductible

Car Loan Interest Is Now Deductible
Car Loan Interest Is Now Deductible

A rare personal-use interest deduction

If you bought a new vehicle assembled in the U.S. and financed it, part of the loan interest may be deductible—up to $10,000 per year.

Pros

  • Lowers the true cost of car ownership
  • Encourages U.S. manufacturing

Cons

  • Only applies to new, U.S.-assembled vehicles
  • Income limits reduce or eliminate the benefit
  • Lenders may not provide forms immediately

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Sudip Sengupta

Tax & Finance Consultant Professional

Sudip Sengupta is the founder and chief author of Tfin Career, a trusted platform dedicated to tax, finance, and investment. With extensive knowledge of the tax systems and financial regulations of both the United States and India, he creates clear, practical, and reliable content that helps individuals, professionals, and businesses make informed financial decisions. His mission is to simplify complex tax and financial topics through expert insights, step-by-step guides, and up-to-date information, empowering readers to achieve long-term financial success with confidence.

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