Does the Subaru Outback 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 Subaru Outback 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 Subaru Outback 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
Subaru builds the Outback at its Lafayette, Indiana plant, so this wagon-crossover clears the OBBBA final-assembly test. Financed new for personal use with income under the phase-out, an Outback loan's interest can be deductible. Assembly is one gate — the calculator handles the rest.
Where the Subaru Outback is assembled
| Assembly plant | Location | Assembly test |
|---|---|---|
| Subaru of Indiana Automotive | Lafayette, IN | ✓ 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 Subaru Outback made?
US Outbacks are assembled at Subaru of Indiana Automotive in Lafayette, a US final-assembly point that satisfies the assembly test.
Is the Outback built in the same plant as the Legacy and Ascent?
Yes. Subaru's Lafayette, Indiana plant builds the Outback, Ascent, and Legacy, so all are US-assembled.
Does a used Outback qualify?
No. Only new vehicles qualify. A used Outback, even an Indiana-built one, is out because original use must begin with you.
Advertiser disclosure
Financing a Subaru Outback? 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.