Does the Toyota Grand Highlander 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 Toyota Grand Highlander 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 Toyota Grand Highlander 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
Toyota builds the Grand Highlander in Princeton, Indiana, so this larger three-row SUV clears the OBBBA final-assembly test. Financed new for personal use with income under the phase-out, a Grand Highlander loan's interest can be deductible. Remember assembly is only one of the gates the deduction checks.
Where the Toyota Grand Highlander is assembled
| Assembly plant | Location | Assembly test |
|---|---|---|
| Toyota Indiana (TMMI) | Princeton, 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 Toyota Grand Highlander built?
The Grand Highlander — gas and hybrid — is assembled at Toyota Indiana in Princeton, a US final-assembly point that satisfies the assembly test.
Is the Grand Highlander built alongside the Highlander?
Yes. Toyota Indiana in Princeton builds the Grand Highlander, Highlander, and Sienna, so all are US-assembled.
Does the Hybrid MAX version qualify the same way?
Yes. The Hybrid MAX is built on the same Princeton, Indiana line, so it meets the assembly test — your loan, use, and income still have to qualify.
Advertiser disclosure
Financing a Toyota Grand Highlander? 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.