Does the Kia K5 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 Kia K5 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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FAIL — assembled outside the USA
The Kia K5 does not qualify 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
Kia ended K5 production at West Point, Georgia in 2024 and reallocated that capacity to EVs, so the 2025–2026 K5 is imported from Korea. That means the current K5 fails the OBBBA final-assembly test and its loan interest doesn't qualify — even though its Georgia-built siblings like the Telluride do.
Where the Kia K5 is assembled
The Kia K5 is imported for the US market — its final assembly point is outside the United States, so it fails the assembly test regardless of the brand.
Confirm the other three tests
A US-assembly result 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
Is the Kia K5 still built in the USA?
No. Kia stopped building the K5 at West Point, Georgia in 2024; current K5s are imported from Korea, so they fail the US final-assembly test. Decode your VIN to confirm, but 2025–2026 units decode to Korea.
Does the K5 qualify for the car loan interest deduction?
Not on the assembly test — an imported vehicle can't qualify regardless of financing. If US assembly matters to you, look at the West Point-built Kia Telluride instead.
Which Kia models are US-built?
The Telluride is built entirely at West Point, Georgia; the Sorento and Sportage are split US/Korea (VIN decides). Always decode the specific VIN before relying on the deduction.
Related vehicles
Kia Telluride ✓ Qualifies Kia Sportage ! Depends on VIN Kia Sorento ! Depends on VIN Kia Carnival ✕ Doesn't qualify Kia EV6 ! Depends on VIN Kia Seltos ✕ Doesn't qualify
Advertiser disclosure
Financing a Kia K5? Compare rates before you sign.
A lower rate means less interest — and the qualifying interest is what's deductible. Compare partner lenders; checking won't affect your credit score.