Federal Tax Deduction for Harley-Davidson Motorcycles

July 17, 2025

Save Up to $10,000 in Interest Deductions When You Finance Your Ride

If you've been dreaming of riding home on a brand-new Harley-Davidson®, 2025 is your year to do it—and potentially save big at tax time. Thanks to a new federal law, qualified riders can now deduct up to $10,000 per year in interest on loans used to finance a new, U.S.-assembled motorcycle.

This first-of-its-kind tax benefit is a major win for American motorcycle buyers—and Harley-Davidson motorcycles qualify.

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How the Tax Deduction Works

  • Deduct up to $10,000 per year in interest paid on motorcycle loans
  • Applies to new, U.S.-assembled motorcycles only
  • Available to both itemized and standard deduction filers
  • Valid for loans originated between January 1, 2025 and December 31, 2028
  • Personal-use vehicles only (not applicable to business or commercial entities)

Which Harley-Davidson Models Qualify?

To qualify, the new Harley-Davidson motorcycle must have a Vehicle Identification Number (VIN) that starts with 1HD. Revolution Max models (VINs beginning with MLY) are not eligible. Qualifying model families include:

  • Softail Models: Street Bob, Low Rider S, Low Rider ST, Breakout, Fat Boy, Heritage Classic
  • Touring Models: Road King Special, Street Glide, Street Glide Ultra, Road Glide, CVO Road Glide, CVO Street Glide, CVO Road Glide ST
  • Trike Models: Road Glide 3, Freewheeler, Tri Glide Ultra

Income Eligibility

  • For individuals, the deduction phases out starting at $100,000 in Modified Adjusted Gross Income (MAGI) and ends at $150,000
  • For married couples filing jointly, the phase-out begins at $200,000 and ends at $250,000

Deduction Timeline

  • Loan must be originated between January 1, 2025 and December 31, 2028
  • Deduction applies to tax years 2025, 2026, 2027, and 2028

How to Claim the Deduction

  1. Visit Sound Harley-Davidson in Marysville, WA
  2. Select a new Harley-Davidson motorcycle with a VIN beginning in 1HD
  3. Finance your motorcycle through an eligible lender
  4. Keep records of your loan and interest paid
  5. Work with a tax professional to claim the deduction on your return
 

Frequently Asked Questions

The new federal law allows individuals to deduct up to $10,000 per year in interest paid on loans for new, U.S.-assembled motorcycles purchased and financed between 2025 and 2028.

No. The deduction is available whether you itemize deductions or take the standard deduction.

Only new motorcycles with a VIN starting with "1HD" qualify. These are U.S.-assembled Harley-Davidson motorcycles. Revolution Max models with a VIN starting with "MLY" do not qualify.

No. The deduction applies only to new motorcycles purchased and financed starting January 1, 2025.

No. This deduction is available only for motorcycles purchased for personal use.

The deduction can be claimed for tax years 2025, 2026, 2027, and 2028.

Your loan provider should issue a statement or provide a breakdown of your interest paid. Keep this documentation for tax filing.

The benefit phases out for individuals above $100,000 and is eliminated at $150,000 MAGI. For married couples filing jointly, the phase-out starts at $200,000 and ends at $250,000.

No. Eligibility is based on the date the loan is originated, not the motorcycle’s model year.

We recommend speaking with a certified tax professional or financial advisor to determine how this deduction applies to your specific situation.
 

Legal Disclaimer

This content is for informational purposes only and does not constitute tax, legal, or financial advice. Please consult a certified tax professional or financial advisor to determine how this tax deduction may apply to your personal situation.