New rate: The IRS will raise the national per-mile business driving rate to 40.5 cents per mile effective Jan. 1, up from 37.5 cents per mile -- an 8 percent jump that's the biggest one-year increase ever.
What it means: U.S. taxpayers can deduct 40.5 cents per mile in vehicle expenses for business miles driven next year.
Doing the math: AAA says the average driver puts on 15,000 miles per year. If they all were business miles, that would mean a deduction of $6,075.
![Attendees of Frostbike made their way through the convention Saturday at the Quality Bike Products campus in Minneapolis. ] (AARON LAVINSKY/STAR TRIBUNE) aaron.lavinsky@startribune.com Frostbike 2016 was held at the Quality Bike Products Campus on Saturday, Feb. 27, 2016 in Bloomington, Minn.](https://arc.stimg.co/startribunemedia/NH2BSHB74ND2V6GF2G2HI5X4MM.jpg?&w=252&ar=3:2&fit=crop)
