Is there an MSRP cap on the OBBBA car loan interest deduction?

No. The IRS pages this site cites do not list a purchase-price or MSRP ceiling on the One Big Beautiful Bill Act car-loan interest deduction.

The IRS Working Families Tax Cuts pages describe a temporary deduction for tax years 2025 through 2028 for interest on a loan used to purchase a qualified vehicle. In that section the IRS writes that the maximum annual deduction is $10,000, and that the deduction phases out for MAGI over $100,000 ($200,000 joint). The companion individuals and workers page repeats those dollars limits. Topic no. 505 repeats the $10,000 interest cap and MAGI limitations.

Those pages also list vehicle type, GVWR under 14,000 pounds, final assembly in the United States, original use, personal use, a lien, and dates. They do not list a purchase-price or MSRP ceiling. The short card is No IRS purchase-price / MSRP cap. This page expands that card. It does not decide a return. AssemblyAlert never says a loan is deductible and never says a reader qualifies.

Sticker price is not the assembly gate. Check US final assembly now on the free homepage VIN checker. Paste the 17-character VIN. AssemblyAlert reads NHTSA vPIC `PlantCountry` and a separate model-year / new-vehicle signal. It passes US assembly only if `PlantCountry` is exactly `UNITED STATES (USA)`. Puerto Rico is not a pass. VIN position 1 is a WMI screen, never the verdict.

You can also paste the same VIN in the free checker on this page. Plant-country Pass is not the deduction.

$10,000 is a cap on interest, not sticker price

The $10,000 line is a cap on qualified interest for the year, not $10,000 of cash back and not a ceiling on the vehicle’s MSRP. If someone paid $12,400 of interest, the IRS annual line still starts at $10,000 before any MAGI reduction. If they paid $6,200, the interest figure — not the sticker — is the starting number.

See the $10,000 interest cap and How much is the deduction worth? for bracket illustrations. Use the interest / OBBBA cap estimator to compare raw interest to $10,000 and an illustrated MAGI slider. That tool does not score sticker price.

Schedule 1-A, Additional Deductions (or whatever form the year uses) is where the IRS has been putting this computation. A VIN on that schedule does not mean the interest is allowed. This page does not invent form lines.

A cheap car can still fail. An expensive car is not auto-disqualified by MSRP.

A low window-sticker number does not clear the other IRS tests. A used car, a lease, a Mexico-plant VIN, a Class 4 GVWR, business use, a 2023 model-year signal, or MAGI over the phaseout can still fail. An expensive new US-assembled vehicle is not automatically disqualified by MSRP on the Working Families Tax Cuts pages or Topic 505.

Those other gates still apply:

• Tax years 2025 through 2028
• Loan originated after December 31, 2024
• Used to purchase a vehicle — lease payments do not qualify (Do auto leases qualify?)
• Original use starts with the taxpayer — used vehicles do not qualify (Do used cars qualify?)
• Personal use, not business or commercial use
• Secured by a lien on the vehicle
• Vehicle type: car, minivan, van, SUV, pickup, or motorcycle
• GVWR under 14,000 pounds
• Final assembly in the United States — Was my car assembled in the US?
• VIN on the return for any year the deduction is claimed
• MAGI phaseout over $100,000 ($200,000 joint), with illustrated full phaseout at $150,000 / $250,000 — MAGI phaseout examples

There is no IRS purchase-price / MSRP gate on that fact sheet. Use the 2025–2028 checklist as a gate list, not a determination. Fact cards print the same IRS-stated lines.

Do not mix dealer EV-credit MSRP talk with this deduction

Some lots still recite an electric-vehicle credit MSRP cap. That is a different rule. 26 U.S.C. § 163 is the interest statute this deduction sits in. Topic 505 is the IRS’s plain-language interest topic. Neither page adds a vehicle-price ceiling for this interest line.

If a salesperson says “this sticker is over the cap,” ask which cap. The IRS pages cited here cap interest, then MAGI. They do not cap the Monroney total.

FAQ

Is there an MSRP cap?

No. The IRS Working Families Tax Cuts pages and Topic 505 do not list a purchase-price or MSRP ceiling.

Is $10,000 the price of the car?

No. It is a cap on qualified interest.

If the car is cheap, do I qualify?

No automatic yes. Assembly, original use, lease, GVWR, personal use, loan date, and MAGI can still fail. This site never says a reader qualifies.

If the MSRP is high, am I out?

Not because of MSRP on those IRS pages. Other gates can still fail.

Is a dealer EV MSRP cap the same thing?

No. Different rules.

Does a pass here mean the loan is deductible?

No. This site never says a loan is deductible and never says a reader qualifies.

Cite the IRS Working Families Tax Cuts pages. Confirm the vehicle, the loan, and the return with a preparer. Not tax advice. Not affiliated with the IRS or NHTSA. Owned by Record of Sale, LLC.