Does the Mercedes-Benz C-Class 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 Mercedes-Benz C-Class is built and what it means for your loan interest.

Assembly data: NHTSA vPIC + our verified plant lists · Not tax advice · Methodology

FAIL — assembled outside the USA

The Mercedes-Benz C-Class 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

The C-Class was assembled in Alabama for the previous generation, but Mercedes ended that in 2020 to free the Tuscaloosa plant for SUVs. Today's C-Class comes from Bremen, Germany, so a 2025 or 2026 C-Class fails the OBBBA final-assembly test — an older window sticker showing Alabama does not carry over.

Where the Mercedes-Benz C-Class is assembled

The Mercedes-Benz C-Class 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→

Check your exact VIN → Estimate your deduction

Frequently asked questions

Isn't the Mercedes C-Class made in Alabama?

It was, through the previous generation. Mercedes ended US C-Class production in 2020 and now builds the Tuscaloosa plant's capacity around SUVs. Current C-Class sedans are imported from Bremen, Germany.

Does the AMG C 63 qualify?

No. All current C-Class variants, AMG included, are assembled in Germany, so none meet the US final-assembly requirement.

How can I confirm where my C-Class was built?

Decode the VIN — a first character of W means Germany, which fails the test. Only a VIN starting 1, 4 or 5 indicates US assembly.

Related vehicles

Mercedes-Benz GLE ✓ Qualifies Mercedes-Benz GLS ✓ Qualifies Mercedes-Benz GLC ✕ Doesn't qualify Toyota Camry ✓ Qualifies Nissan Altima ✓ Qualifies Toyota Corolla ! Depends on VIN

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