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How much is the car-loan interest deduction worth?

Enter your loan and income to estimate the deductible interest and your tax savings, after the income phase-out. Calculations use the verified rules (interest-only, $10,000 cap, $200-per-$1,000 phase-out). Runs in your browser.

Loan amount amount financed

Interest rate (APR %)

Loan term (months)

Your income (MAGI) ≈ your AGI for most people

Filing status

Your marginal tax bracket for the savings estimate

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Estimate only. The phase-out reduces the $10,000 cap (by $200 per $1,000 of income over your threshold), not your interest directly — so if your interest is below the reduced cap, the cap may not bite. Head-of-household and married-filing-separately thresholds are not yet specified in IRS guidance. Thomson Reuters

See the full income limits & phase-out rules, or learn how to claim it.

Not tax advice. Educational information about the federal car-loan interest deduction, current as of June 2026. The IRS rules are proposed regulations and could change — verify with the IRS or a tax professional before filing.