Does the Hyundai Sonata qualify for the car loan interest deduction?
The 2025–2028 deduction turns on where a vehicle is finally assembled — not the badge. Here's where the 2025–2026 Hyundai Sonata is built and what it means for your loan interest.
Assembly data: NHTSA vPIC + our verified plant lists · Not tax advice · Methodology
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PASS — assembled in the USA
The Hyundai Sonata qualifies on the assembly test. Assembly is one of four gates — you also need a new vehicle, personal use, a 2025–2028 loan, and income under the phase-out.
The short answer
Hyundai builds the Sonata in Montgomery, Alabama, so this sedan passes the OBBBA final-assembly test. Financed new for personal use and under the income cap, a Sonata loan's interest can be deductible. Remember assembly is only one of the gates the deduction checks.
Where the Hyundai Sonata is assembled
| Assembly plant | Location | Assembly test |
|---|---|---|
| Hyundai Motor Manufacturing Alabama | Montgomery, AL | ✓ United States |
Confirm the other three tests
A US-assembly PASS is only the first gate. Each remaining condition has its own guide:
New & personal-use — used cars and leases don't qualify→ Loan dated 2025–2028 — refinancing keeps eligibility→ Income under the phase-out — run the MAGI calculator→
Frequently asked questions
Where is the Hyundai Sonata built?
US Sonatas are assembled at Hyundai's Montgomery, Alabama plant, a US final-assembly point that meets the assembly test.
Does the Sonata Hybrid qualify the same way?
Yes. The Sonata Hybrid shares the Montgomery, Alabama line, so it meets the assembly test — your loan, use, and income still have to qualify.
Is a used Sonata eligible?
No. The deduction only covers new vehicles. A used Sonata, even an Alabama-built one, does not qualify because original use must begin with you.
Advertiser disclosure
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A lower rate means less interest — and the qualifying interest is what's deductible. Compare partner lenders; checking won't affect your credit score.