Does Your New Toyota SUV Qualify for OBBBA Tax Deductions?

2025 Toyota RAV4

The new OBBBA tax deduction can provide significant tax savings to new car owners. In fact, your new Toyota SUV could be a substantial tax deduction. We’re outlining the new tax deduction at Casey Toyota and all its noteworthy details.

An Overview of the New Tax Deduction

The One Big Beautiful Bill Act, also known as OBBBA, is a new tax deduction that was put into effect in 2025. The act is intended to provide tax savings to new car owners. It allows taxpayers to deduct up to $10,000 per year of interest on their new car loan.

Tax Deduction Stipulations

The new act only applies to new vehicles with a final assembly in the United States. This way, the bill not only benefits American consumers, but American manufacturers as well. The final assembly of the vehicle must be between 2025 and 2028, which will be the final year the act will be in effect. The vehicle can only be used for personal use, and its GVWR must be under 14,000 pounds.

Toyota Vehicles That Qualify

There are several Toyota manufacturing plants in America, so many new Toyota vehicles qualify for the OBBBA. There are Toyota plants in Georgetown, KY; Blue Springs, MS; Huntsville, AL; Princeton, IN; and San Antonio, TX. The vehicles they manufacture include:

  • Toyota Camry
  • Toyota Corolla
  • Toyota Corolla Cross
  • Toyota Grand Highlander
  • Toyota Highlander
  • Toyota RAV4
  • Toyota Sequoia
  • Toyota Sienna
  • Toyota Tundra

Claiming the Deduction

To claim your car loan’s interest as a deduction, you’ll need to include your Vehicle Identification Number (VIN) on your taxes. It’s considered an above-the-line deduction, so it’s not necessary to itemize. The deduction will have an income phaseout, which will phase out completely with a $150,000 income (or $250,000 on joint returns).

Explore Our New Toyota Inventory in Williamsburg, VA

As you can see, now is a great time to buy a new Toyota vehicle and take advantage of these huge tax savings. We encourage you to visit our Toyota dealership in Williamsburg, VA, to explore our diverse inventory. You can also discuss your Toyota financing options with our team and upgrade to a new model today!