Are you shopping for a new car, truck or SUV? Exciting changes to federal tax regulations now allow qualified buyers to benefit from an auto loan interest deduction when purchasing Toyota vehicles made in the United States.¹ This initiative helps reduce your financing costs and is a great opportunity to consider upgrading to a new Camry or Tundra.
Our Toyota dealership in Bay City is here to guide you through the process, ensuring you understand the details and eligibility criteria for this valuable tax benefit available to buyers near Saginaw.
Understanding the Auto Loan Interest Tax Deduction
Qualified buyers can now deduct up to $10,000 annually in interest paid on loans for new Toyota vehicles.¹ This program will be available until December 31, 2028, offering significant financial advantages whether you opt for the standard deduction or itemize your tax return.¹
To make the most of this benefit, it's important to keep accurate records of your loan and purchase details. The Labadie Toyota finance team is ready to assist you with the necessary documentation to ensure a smooth tax filing process for drivers.
Eligible Toyota Models for the Interest Deduction
To qualify, your new Toyota must be assembled in the United States. Here are some models and their assembly locations that meet these criteria:¹
- 2025 Toyota Corolla Cross (Gas & Hybrid)
- 2025 Toyota Camry • 2025 Toyota Highlander (Gas & Hybrid)
• 2025 Toyota Grand Highlander (Gas & Hybrid) - 2025 Toyota Sienna
- 2025 Toyota Tundra (Gas & Hybrid)
- 2025 Toyota Sequoia
- 2025 Toyota Corolla (Sedan & Hatchback)
- 2025 Toyota RAV4 Hybrid
Have questions about a particular model? Contact us for detailed information and to explore our eligible inventory in Bay City.
Qualifying for the Auto Loan Interest Tax Deduction
Thinking about when you to apply for Toyota financing in Michigan? Ensure you meet these criteria before proceeding:¹
Income Requirements: Individuals with a modified adjusted gross income up to $100,000, or couples earning up to $200,000 jointly, qualify for the full deduction. The benefit decreases and is eventually phased out for higher income filers.¹
Vehicle Assembly: Only new Toyota models assembled in the U.S. qualify.¹
Documentation: Maintain all finance agreements, proof of interest paid and related paperwork for your tax records.¹
Timing: Your loan must be completed by December 31, 2028, to take advantage of this benefit.¹
Our experts can help you understand these requirements and guide you through the qualification process for customers throughout the greater Bay City and Saginaw areas.
Buy an American-Made Toyota Cars in Michigan
Looking for a lower cost of ownership on your new Toyota RAV4 Hybrid or Tundra near Saginaw? Visit Labadie Toyota in Bay City for assistance with each step. From confirming model eligibility to completing your financing paperwork, we're here to help you maximize your tax savings.
Explore our selection of American-assembled Toyota vehicles, speak with our dedicated team or get pre-approved for Toyota financing online. Let us help you drive home in a new Toyota Camry or Sienna in Bay City, while taking full advantage of the available federal tax benefits!
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¹ See dealer for details. Eligibility and requirements are subject to change. We recommend speaking with a tax professional.
