New Ford Vehicles & Car Loan Interest Deduction
Which 2026 and 2027 Fords qualify for the car loan interest deduction?
If you finance a new Ford that had its final assembly in the U.S. and you use it mainly for personal driving, you can deduct up to $10,000 a year of the loan interest on your 2025 through 2028 federal returns, whether or not you itemize. That covers the F-150, Ranger, Bronco, Explorer, Expedition and Mustang, but not the Mexico-built Maverick, Bronco Sport or Mustang Mach-E.
One change this fall matters most to truck shoppers. Ford started building Super Duty pickups at its plant in Oakville, Ontario, in late October 2026, so two F-250s on the same lot can now land on opposite sides of the rule. This guide lists every current and announced Ford, shows the 30-second check that settles it for the exact vehicle, and runs the numbers for buyers in Chester, Chesterfield and Midlothian.
The deduction in 60 seconds
The deduction comes from the One Big Beautiful Bill Act. Treasury and the IRS issued final rules on September 4, 2026, and they take effect November 9, 2026 (KPMG summary of T.D. 10054). Interest qualifies when all of these are true:
- The vehicle is new. You're its first owner. Cars, minivans, vans, SUVs, pickups and motorcycles count if they're rated under 14,000 pounds gross vehicle weight (GVWR).
- Final assembly happened in the United States.
- You bought it mainly for personal use. That's judged when you take out the loan.
- The loan bought the vehicle and is secured by it. It was taken out after December 31, 2024, with a first lien on the vehicle.
- You're paying interest in 2025 through 2028. The deduction ends after the 2028 tax year.
The limit is $10,000 of interest per tax return, including joint returns. You claim it on Schedule 1-A of Form 1040, with the vehicle's VIN, whether you take the standard deduction or itemize. Your lender reports the interest you paid on the new Form 1098-VLI (IRS Publication 6126).
The income phase-out is steeper than it looks
Above $100,000 of modified adjusted gross income ($200,000 on a joint return), the deduction drops by $200 for every $1,000, or part of $1,000, over the line. On Schedule 1-A, that cut comes off the interest you actually paid, not off the $10,000 limit. A single filer with $2,900 of interest keeps about $1,900 of it at $105,000 of income and nothing at $115,000. Everyone is phased out at $150,000 single or $250,000 joint.
Every 2026 and 2027 Ford, eligible or not
Ford says about 80% of the vehicles it sells in the U.S. are assembled here, and its own list of eligible models matches the table below (Ford Authority). Plants are where Ford builds each model for the U.S. market as of October 2026.
| Model | Final assembly | Qualifies new? | What to know |
|---|---|---|---|
| F-150 | Dearborn, MI; Kansas City, MO | Yes | The 2027 F-150 swaps the 2.7L EcoBoost for a 3.0L; plants are unchanged. |
| Super Duty (F-250, F-350, F-450) | Louisville, KY; Avon Lake, OH; Oakville, Ontario (from late Oct 2026) | Depends on the truck | U.S.-built trucks qualify; Oakville-built trucks don't. Check the GVWR on F-450s and chassis cabs: 14,000 lb or more doesn't qualify. |
| Ranger | Wayne, MI | Yes | The U.S.-built alternative to the Maverick. |
| Bronco | Wayne, MI | Yes | Every trim, including Raptor. |
| Explorer | Chicago, IL | Yes | 2026 and 2027 models. |
| Expedition | Louisville, KY | Yes | Higher-priced trims generate the most interest to deduct. |
| Mustang | Flat Rock, MI | Yes | Coupe and convertible. |
| Transit / E-Transit | Kansas City, MO | Yes, if for personal use | Most vans are bought for business, which doesn't qualify. |
| E-Series cutaway | Avon Lake, OH | Rarely | Usually commercial, and many are rated 14,000 lb GVWR or more. |
| F-150 Lightning | Dearborn, MI | Yes, if new | Ford ended production in December 2025; remaining new units qualify. |
| Escape | Louisville, KY | Yes, if new | Ford built the last Escape in December 2025. |
| Fathom (arriving 2027) | Louisville, KY (planned) | Expected to | Ford's midsize electric pickup; deliveries are planned for fall 2027. |
| Maverick | Hermosillo, Mexico | No | Mexico-built. Consider the Ranger. |
| Bronco Sport | Hermosillo, Mexico | No | Mexico-built. The Bronco qualifies. |
| Mustang Mach-E | Cuautitlán, Mexico | No | Mexico-built. |
Check any Ford in 30 seconds
The IRS lets you rely on either the window sticker or the plant of manufacture in the VIN. Here's the fastest way through both:
- Read the window sticker. On a new Ford, the parts-content box on the window sticker lists the "Final Assembly Point," with a city and country.
- Look at the first character of the VIN. A 1, 4 or 5 means the vehicle was built in the U.S. A 2 means Canada and a 3 means Mexico. It's the quickest screen on the lot, and on a Super Duty it's the one that matters.
- Confirm it with NHTSA's free decoder. Enter all 17 characters at nhtsa.gov/vin-decoder. "Plant Country" should read United States.
Tip from our finance office: Shopping for a Super Duty? Check the VIN of the exact truck before you compare prices, and keep a copy of the window sticker or the NHTSA result with your buyer's order for your tax records.
What it's worth in real dollars
| Example loan | Interest in year one | Federal tax saved |
|---|---|---|
| $45,000 on an F-150, 7% APR, 60 months | About $2,900 | About $640 (22% bracket) |
| $80,000 on an Expedition, 7% APR, 72 months | About $5,250 | About $1,260 (24% bracket) |
Interest falls every year as the balance goes down, so the deduction is biggest in year one and smaller after that. Only about 1% of new-car loans generate $10,000 of interest in a year (Carscoops), so for most buyers it's worth a few hundred dollars to about a thousand a year.
Our take: it's real money, but it shouldn't decide which vehicle you buy. Choose the right truck or SUV first, then treat the deduction as a bonus.
Loan examples are for illustration only and are not an offer of credit. Your rate and terms depend on credit approval. Tax savings assume no income phase-out.
What doesn't qualify
- Used vehicles, including certified pre-owned. The deduction is for new vehicles only.
- Leases. There's no purchase loan.
- Cash deals and 0% APR loans. No interest, nothing to deduct.
- Vehicles bought mainly for business. Business buyers should compare business deductions instead; our Section 179 guide (coming Dec 9) covers the difference.
- Loans not secured by the vehicle, such as a personal loan or a home equity line, and loans from a family member or other related party.
- Interest on negative equity rolled in from your trade. The final rules split the loan and count only the share that bought the new vehicle.
- Refinanced loans above the balance of the original qualifying loan.
- Vehicles rated 14,000 pounds GVWR or more, including some heavy chassis-cab trucks.
How it fits with Ford Credit APR offers
When Ford Credit runs a special APR, you often choose between low-rate financing and a cash rebate. The deduction only helps on interest you actually pay, so it can tilt that choice slightly toward the rebate paired with a standard-rate loan. Price both options out the door, in writing, then factor in the deduction at your tax bracket. Get pre-approved first so you know your outside rate.
What you'll pay beyond the price is in our Ford buying and financing guide, including Virginia's 4.15% sales and use tax.
How to claim it
Early next year your lender should send Form 1098-VLI showing the interest you paid. Keep it with your buyer's order and a copy of the window sticker or VIN decode. You or your tax preparer enter the interest and the VIN on Schedule 1-A, Part IV. Our step-by-step guide to claiming it (coming Jan 12) walks through the form line by line.
Frequently asked questions
Does the Ford Maverick qualify for the car loan interest deduction?
No. The Maverick is assembled in Hermosillo, Mexico, so it doesn't meet the U.S. final-assembly rule. The U.S.-built Ranger is the closest Ford pickup that can qualify.
Does the Ford Super Duty qualify?
It depends on the truck. Super Duty pickups built in Kentucky or Ohio qualify if bought new for personal use and rated under 14,000 pounds GVWR. Since late October 2026, some are built in Oakville, Ontario, and those don't. A VIN starting with 1 means U.S.-built; a 2 means Canada.
Does a leased Ford qualify?
No. The deduction applies only to interest on a loan used to buy the vehicle.
Do used Fords qualify?
No. Only new vehicles qualify. Certified pre-owned and other used vehicles don't.
Do I have to itemize to claim the deduction?
No. You claim it on Schedule 1-A of Form 1040 whether you itemize or take the standard deduction.
What if my income is over $100,000?
The deduction shrinks by $200 for every $1,000 of modified adjusted gross income over $100,000 ($200,000 on a joint return), and it's gone at $150,000 ($250,000 joint).
Does the F-150 Lightning qualify?
A new one can. The Lightning was assembled in Dearborn, Michigan. Ford ended production in December 2025, so only remaining new units qualify.
Sources
Facts on this page come from these sources, checked October 2026. We review this page every quarter and update it when rules or Ford specs change.
- Internal Revenue Service, “Publication 6126: Car loan interest deduction.” www.irs.gov/pub/irs-pdf/p6126.pdf Eligible vehicles, $10,000 limit and Form 1098-VLI.
- Federal Register, “Car Loan Interest Deduction, final regulations (T.D. 10054).” www.federalregister.gov/documents/2026/09/08/2026-18219/car-loan-interest-deduction Published September 8, 2026.
- KPMG, “Final regulations: Deduction for qualified passenger vehicle loan interest.” kpmg.com/us/en/taxnewsflash/news/2026/09/final-regulations-qualified-passenger-vehicle-loan-interest-obbba.html Effective November 9, 2026; negative equity, refinancing and per-return limit.
- Ford Authority, “Here is every Ford and Lincoln that qualifies for new tax deduction.” fordauthority.com/2026/01/here-is-every-ford-and-lincoln-that-qualifies-for-new-tax-deduction/ Ford's list of eligible models and VIN check.
- Automotive News, “Ford Super Duty production starts at Oakville plant, first truck shipped.” www.autonews.com/ford/anc-oakville-super-duty-production-starts-1028/ October 29, 2026.
- Electrek, “Ford's EV pickup arrives in 2027.” electrek.co/2026/08/13/fords-ev-pickup-arrives-2027-more-than-affordable-price/ Fathom production at Louisville Assembly.
- Ford Authority, “Ford Bronco Sport likely staying put in Mexico after all.” fordauthority.com/2026/08/ford-bronco-sport-likely-staying-put-in-mexico-after-all/ Bronco Sport and Maverick at Hermosillo.
- Carscoops, “Ford confirms models eligible for the $10K loan deduction.” www.carscoops.com/2026/01/ford-car-loan-tax-deduction-eligibility/ Ineligible models and the share of loans reaching $10,000.
- National Highway Traffic Safety Administration, “VIN Decoder.” www.nhtsa.gov/vin-decoder Plant of manufacture by VIN.
This is general information, not tax advice. Eligibility depends on your income, how you use the vehicle and your loan. Talk to your tax preparer about your situation.
Find a Ford that qualifies.