No, personal loans are not tax deductible outside of a handful of exceptions. There are some cases when the interest on a personal loan—but not the principal repayment—might be deductible, depending on what the loan was used for.
The three main examples are if you use a personal loan to fund qualified higher education expenses, as it can potentially meet the IRS’s definition of a student loan. You could also potentially deduct your personal loan interest if you use a personal loan to start or fund a business. Finally, if you use the loan to buy investments in a taxable brokerage account, the interest is deductible, just as margin interest is (although borrowing money to invest is almost never a good idea).
Are credit cards or personal loans worse for credit?
