Does the Toyota 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 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 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 Highlander and its hybrid in Princeton, Indiana, so this three-row SUV clears the OBBBA final-assembly test. Finance one new for personal use with income under the cap and the loan interest can be deductible. Remember assembly is only one of the gates the deduction checks.
Where the Toyota 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 Highlander made?
US Highlanders — gas and hybrid — are assembled at Toyota Indiana in Princeton, a US final-assembly point that satisfies the assembly test.
Does the Highlander Hybrid qualify the same way?
Yes. The hybrid shares the Princeton, Indiana line, so it passes the assembly test just like the gas model. Your loan, use, and income still have to qualify.
Is the Grand Highlander built in the same place?
Yes, the larger Grand Highlander also comes from Princeton, Indiana, so it meets the assembly test on the same basis.
Advertiser disclosure
Financing a Toyota 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.