Explore Tax-Deductible Vehicles at Patriot Hyundai of Danville

New tax rules allow you to save on interest paid on a new vehicle financed starting after December 31, 2024, through the 2028 tax year. There are income limits and restrictions on the types of new vehicles that qualify for the deduction. You can take up to $10,000 of interest paid throughout the year as a deduction on top of the standard deduction when you file your taxes. Please consult a tax preparation expert for more information about possible savings. Here are the general requirements to qualify for the new tax deduction on interest paid for new vehicles:

• Must be a new vehicle for personal use by the taxpayer
• Only new vehicles financed during the eligible tax years (2025 - 2028) can qualify
• Taxpayer must meet the minimum income criteria as the amount of the deduction starts to phase out for incomes starting at $100,000 for single filers and $200,000 for joint filers
• Final assembly must be in the United States, verified by VIN (starts with 1, 4, or 5)
• Deduction limit of up to $10,000 off interest paid on the loan annually