Does the Ram 1500 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 Ram 1500 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 Ram 1500 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
The current Ram 1500 is built at the Sterling Heights Assembly Plant in Michigan, so it passes the OBBBA final-assembly test. Financed new for personal use and under the income cap, a Ram 1500 loan's interest can qualify. Note the older Ram 1500 Classic was built in Mexico, but it has been discontinued.
Where the Ram 1500 is assembled
| Assembly plant | Location | Assembly test |
|---|---|---|
| Sterling Heights Assembly Plant | Sterling Heights, MI | ✓ 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 Ram 1500 built?
The current-generation Ram 1500 is assembled at Sterling Heights Assembly Plant in Michigan, a US final-assembly point that meets the assembly test.
What about the Ram 1500 Classic?
The previous-generation Ram 1500 Classic was built in Saltillo, Mexico and would fail the assembly test — but it has been discontinued, so 2025–2026 trucks come from Michigan. Decode the VIN if you're unsure which you have.
Does using the Ram 1500 for work affect the deduction?
The OBBBA deduction is for personal use. Interest on a truck used mainly for business is handled under separate business rules, not this one.
Advertiser disclosure
Financing a Ram 1500? 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.