New Vehicle Loan Interest Deduction
By January 23, 2026
Under the One Big Beautiful Bill Act (OBBA), a new tax provision allows eligible borrowers to deduct the interest paid on certain auto loans. Here’s what you need to know and what to have on hand when tax time rolls around.
What Is the Auto Loan Interest Deduction?
The OBBA includes a provision that allows taxpayers to deduct qualified auto loan interest paid during the tax year, subject to IRS rules and income eligibility requirements. In simple terms, if you paid interest on an eligible car loan, that interest may now work a little harder for you when you file your taxes. Because tax situations vary widely, eligibility and the amount you can deduct depend on factors like income, filing status, and how the vehicle is used.
What Information Will You Need?
If you plan to explore this deduction, the key number you’ll need from Topside is your Year-to-Date (YTD) Interest Paid on your auto loan. You can find this amount on your December 31, 2025 account statement. This figure reflects the total interest you paid on your loan during the calendar year and is what your tax professional will use to determine whether you qualify for the deduction and how much you may be able to claim.
Qualifying Vehicles:
Cars, minivans, vans, SUVs, pickup trucks, and motorcycles.
Must be assembled in the United States (VIN Lookup).
- Must have a gross vehicle weight rating under 14,000 pounds.
Do I Need to Contact Topside?
In most cases, no extra steps are required. Your December 31, 2025 statement includes the information your tax advisor will need. We recommend holding onto that statement with your other tax documents. If you have questions about accessing your statement, our team is always happy to help.
A Friendly (But Important) Reminder
We strongly advise members to consult a qualified tax advisor or tax professional to:
Confirm your eligibility for the auto loan interest deduction
Understand how it applies to your specific situation
Ensure it’s reported correctly on your tax return
You can also visit the IRS website “No tax on car loan interest (Section 70203)” for full eligibility guidelines.
Have questions about your loan or accessing your statement? Reach out to us or log in to digital banking anytime.
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