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Can I claim my car loan for tax relief?
Short answer: for a personal car, no — car loan instalments and interest are not in LHDN's official YA2026 relief table. For a car used in a business, its cost is claimed through capital allowances and hire-purchase interest on Form B.
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Business car (Form B)
- Non-commercial vehicles: the qualifying cost for capital allowances is capped at RM50,000; RM100,000 for new vehicles costing up to RM150,000.
- Hire-purchase interest on the business-use portion is deductible as an expense.
- Personal use is separated — only the business portion counts.
Personal car
Instalments, interest, car insurance and road tax for a personal car have no individual tax relief.
What you can claim instead: interest on your first HOME loan under First home loan interest (cap RM7,000, subject to the official conditions).
Work it out before you buy
ListBelanja's car loan calculator works out the monthly instalment, total interest and effective rate of a flat-rate loan — free, no sign-up.
Frequently asked questions
Can car loan interest be claimed on Form BE?
No. There is no relief for a personal car loan in the official YA2026 table.
I use my car for e-hailing or business — what can I claim?
Capital allowances on the car's cost (subject to LHDN's cost cap) and hire-purchase interest on the business portion, on Form B, together with petrol, tolls and maintenance for business use.