For 2026, you can claim a motorcycle loan interest tax deduction of up to $10,000 per year, provided the bike is new, was assembled in the United States, and was purchased for personal use with a loan taken out after December 31, 2024. The deduction was created by the One, Big, Beautiful Bill Act and runs through the 2028 tax year.1Internal Revenue Service. One, Big, Beautiful Bill Act: Tax Deductions for Working Americans and Seniors You can take it whether you itemize or use the standard deduction.2Internal Revenue Service. Treasury, IRS Provide Guidance on the New Deduction for Car Loan Interest Under the One, Big, Beautiful Bill
Before this law, personal vehicle loan interest was not deductible at all. Only interest counts now; lease payments do not qualify, and the loan itself must have been incurred after December 31, 2024, to buy a new vehicle for personal use.
Which Motorcycles Qualify
The IRS defines a qualifying vehicle as a car, minivan, van, SUV, pickup truck, or motorcycle with a gross vehicle weight rating under 14,000 pounds that has undergone final assembly in the United States.1Internal Revenue Service. One, Big, Beautiful Bill Act: Tax Deductions for Working Americans and Seniors The motorcycle must be new, not used. Both gas-powered and electric motorcycles qualify as long as they meet the assembly requirement.
To confirm where a bike was built, check the vehicle information label on the dealer lot or run the VIN through the National Highway Traffic Safety Administration’s VIN Decoder. The plant of manufacture encoded in the VIN will tell you whether final assembly happened domestically.
One boundary worth knowing: e-bikes and standard bicycles are not on the IRS list of qualifying vehicles. If you financed an e-bike, this deduction does not apply, and there is no federal tax credit or deduction for electric bicycles as of 2026.
How to Claim It on Your Return
The IRS has directed lenders to file information returns reporting qualifying interest paid on vehicle loans.2Internal Revenue Service. Treasury, IRS Provide Guidance on the New Deduction for Car Loan Interest Under the One, Big, Beautiful Bill Expect a statement from your lender showing the deductible interest you paid during the year, similar to the Form 1098 used for mortgage interest.
Because the deduction is available to both standard-deduction and itemizing filers, you do not need to file Schedule A. It reduces your adjusted gross income directly. Keep the loan agreement, the lender’s interest statement, and proof of domestic assembly with your records. The IRS is publishing form instructions for the 2026 filing season, so verify the correct line before filing.
What About Federal Electric Motorcycle Credits
There is no longer a federal clean vehicle credit for two-wheelers. The New Clean Vehicle Credit under Section 30D, the Qualified Commercial Clean Vehicle Credit under Section 45W, and the Previously Owned Clean Vehicle Credit all ended for vehicles acquired after September 30, 2025.3Internal Revenue Service. Clean Vehicle Tax Credits An earlier, narrower credit for two-wheeled plug-in electric vehicles expired on January 1, 2022.4Alternative Fuels Data Center. Qualified Two-Wheeled Plug-In Electric Drive Motor Vehicle Tax Credit For a new electric motorcycle in 2026, the loan interest deduction is the federal tax break available.
If You Use the Motorcycle for Business
A motorcycle used for business follows a different and often larger set of rules. You can deduct the business portion of actual operating expenses, including fuel, insurance, repairs, registration fees, and depreciation.5Internal Revenue Service. Topic No. 510, Business Use of Car When the bike is used only for business, everything is deductible.
The IRS standard mileage rate of 72.5 cents per mile for 2026 applies to cars, vans, pickups, and panel trucks.6Internal Revenue Service. IRS Sets 2026 Business Standard Mileage Rate at 72.5 Cents Per Mile, Up 2.5 Cents Motorcycles are not on that list. If you ride for work, track and deduct actual expenses.
Section 179 and Bonus Depreciation
A motorcycle used more than 50% for business qualifies for Section 179 expensing, which lets you deduct the full purchase price in the year you place it in service. The overall Section 179 cap for 2026 is $2,560,000. Bonus depreciation for 2026 is 100% for qualifying business property, after the One, Big, Beautiful Bill Act restored the full first-year write-off that had been phasing down under the 2017 Tax Cuts and Jobs Act. In combination, a business motorcycle placed in service in 2026 can potentially be written off entirely in its first year. Interest on a business loan is separately deductible as an operating expense.
Mixed Business and Personal Use
When a motorcycle serves both purposes, only the business share of expenses is deductible. Divide total expenses by the ratio of business miles to total miles. If 60% of your riding is for work, 60% of fuel, maintenance, and insurance costs are deductible. Parking fees and tolls for business trips are deductible on top of that percentage.5Internal Revenue Service. Topic No. 510, Business Use of Car
Recordkeeping is where business vehicle deductions usually fall apart in audits. Keep a mileage log noting date, destination, business purpose, and miles for each trip. A digital tracking app handles this without effort.
Can You Take Both the Personal and Business Deductions
Not on the same motorcycle. The personal vehicle loan interest deduction applies to a bike purchased for personal use. If you claim business deductions on a motorcycle, the loan interest becomes a business expense instead, deductible under general business rules with no $10,000 cap. You cannot claim both the personal deduction and a business write-off for the same interest.
Own two motorcycles, one personal and one for work, and each falls under its own rules. The personal bike’s interest is capped at $10,000 a year; the business bike’s interest and operating costs flow through your business return with no fixed dollar ceiling.