The taxi license cost in New York NY (2026)—commonly known as a medallion—ranges from $130,000 to $185,000, depending on demand, vehicle type, and borough. Independent driver licenses are typically $550–$1,200, while commercial medallions (yellow cabs) cost significantly more. Drivers also pay TLC application fees ($252), drug testing ($32), and background checks ($75–$100). Renewal fees apply every two years. Costs fluctuate with ride-hailing competition and market demand. Boroughs like Bronx and Queens have lower costs compared to Manhattan, where medallion prices remain highest. Financing options and lease-to-own programs make entry affordable for new drivers.
Taxi license costs in New York range from $130,000–$185,000 in 2026. Learn how to get a TLC license, driver pay, car ownership costs, and borough-wise taxi expenses in NYC.
How to get a taxi license in New York [2026]
To become a licensed taxi driver in New York City, one must apply via the NYC Taxi & Limousine Commission (TLC). The process includes submitting an application, completing required training (e.g. 24-hour TLC driver training, defensive driving course, wheelchair accessibility training), passing a medical exam, and undergoing drug testing and fingerprinting. You pay associated fees (application, testing, fingerprinting). Once approved, you receive a three-year TLC driver license. You also need to ensure your vehicle has a valid TLC vehicle license. Throughout, you must maintain compliance with TLC rules and renew periodically.
To operate a taxi in New York City, drivers must obtain a TLC (Taxi and Limousine Commission) license. Here’s the 2026 step-by-step process:
- Apply for a TLC Driver License:
- Complete the TLC application on the NYC TLC website.
- Application fee: $252.
- Meet eligibility requirements:
- Be at least 19 years old.
- Have a valid New York State driver’s license (Class D or E).
- Pass a drug test ($32–$50).
- Complete a defensive driving course and wheelchair-accessible training.
- Pass medical and background checks:
- Background check: $75–$100.
- Medical exam: $50–$100.
- Attend the 24-hour TLC Driver Education Course (fee: $175–$250).
- Pass the TLC exam covering NYC geography, customer service, and TLC rules.
Once approved, you’ll receive your TLC license, valid for two years, with renewal fees of $252.
How much do NY taxi drivers make [2026]
In NYC, licensed yellow taxi drivers’ pay is calculated per mile and per minute based on regulated rates. For non-wheelchair accessible vehicles, the base is around $1.70 per mile and ~$0.70 per minute in slow traffic; for wheelchair accessible vehicles, rates are slightly higher. Drivers’ net earnings depend heavily on how many hours they work, their expenses (fuel, maintenance, lease or medallion payments), and downtime. Estimates suggest a driver owning a medallion-free lease model might net an effective pay near $20–25 per hour inclusive of tips. Actual annual take-home can vary widely based on shifts and costs.
Taxi driver income in New York varies by borough, working hours, and whether the driver owns or leases the medallion.
Average annual income (2026):
- Full-time medallion driver: $55,000–$75,000
- Leased cab driver: $40,000–$55,000
- Independent ride-hail + taxi mix driver: $60,000–$85,000
Key factors affecting income:
- Shift hours: Peak hours (evenings and weekends) yield higher fares.
- Tourist season: Increased demand boosts daily earnings.
- Borough operations: Drivers focusing on Manhattan and airports earn more than those in outer boroughs.
Typical daily expenses include fuel ($30–$50/day), lease or loan payments, and insurance costs ($150–$250/month).
How much does it cost to buy your own taxi [2026]
To “own” a taxi in NYC you typically must acquire a medallion or equivalent operating permit. Historically, medallion prices peaked near $1 million, but with market decline and ride-share competition, values have dropped substantially. In recent years, medallion resale prices have ranged from tens of thousands up to a few hundred thousand dollars for remaining active medallions. Beyond the permit cost, you must invest in the vehicle itself, insurance, licensing, inspections, and vehicle conversion (e.g. accessibility features). Thus, total startup cost to own and operate can easily run into hundreds of thousands of dollars.
Owning your own taxi in NYC is a major investment. The cost depends on whether you’re purchasing a yellow medallion cab, green borough taxi, or rideshare-compliant vehicle.
Cost breakdown (2026):
- Yellow Medallion Taxi: $130,000–$185,000
- Green Borough Taxi: $40,000–$80,000
- Vehicle purchase: $25,000–$40,000 for a hybrid sedan or wheelchair-accessible van
- Insurance and registration: $5,000–$8,000 annually
- Vehicle conversion (for WAVs): $10,000–$15,000
Many drivers use lease-to-own programs or financing options through TLC-approved lenders, spreading payments over 5–7 years.
Tip: If you’re starting new, consider purchasing a borough green cab first—it’s cheaper and less regulated than a Manhattan medallion taxi.
Taxi License Cost in New York by Borough [2026]
In New York City, the cost to get a TLC driver license is uniform across boroughs, since it’s regulated citywide—about $252 for the basic license plus associated testing, fingerprinting, vehicle licensing, and training costs. The cost of owning or operating a medallion taxi differs less by borough and more by permit scarcity and vehicle demand. In outer boroughs (Bronx, Queens, Staten Island), medallion resale or lease rates are generally lower than in Manhattan. Operating costs (maintenance, insurance) might also differ slightly per neighborhood. But the core licensing fees don’t vary by borough.
1. Manhattan
- Medallion cost: $160,000–$185,000
- TLC license: $252 + $32 drug test + $175 training
- Vehicle purchase: $30,000–$50,000
- Notes: Highest earning potential, but most expensive licensing and medallion market.
2. Brooklyn
- Medallion cost: $130,000–$160,000
- TLC license fees: $252 + $75 background
- Vehicle cost: $25,000–$40,000
- Notes: Popular for borough-based and green taxis; lower medallion costs.
3. Queens
- Medallion cost: $120,000–$150,000
- Vehicle registration: $25,000–$38,000
- Additional fees: $500–$700 yearly maintenance
- Notes: Ideal for airport taxi routes (JFK, LaGuardia).
4. Bronx
- Medallion cost: $100,000–$130,000
- TLC license: $252
- Vehicle: $20,000–$35,000
- Notes: Affordable market for new drivers; green cab licenses are common.
5. Staten Island
- Medallion cost: $90,000–$125,000
- TLC license & background: $252 + $75
- Vehicle: $20,000–$30,000
- Notes: Least expensive borough; fewer yellow cabs, more independent drivers.
📊 Summary of Taxi License Costs in New York NY [2026]
| Borough | Medallion/License Cost | Vehicle Cost | Total Estimated Setup | Notes |
|---|---|---|---|---|
| Manhattan | $160,000–$185,000 | $30,000–$50,000 | $190,000–$230,000 | Highest costs, top demand |
| Brooklyn | $130,000–$160,000 | $25,000–$40,000 | $160,000–$200,000 | Popular among borough taxis |
| Queens | $120,000–$150,000 | $25,000–$38,000 | $145,000–$190,000 | Airport route focus |
| Bronx | $100,000–$130,000 | $20,000–$35,000 | $125,000–$165,000 | Budget-friendly entry point |
| Staten Island | $90,000–$125,000 | $20,000–$30,000 | $115,000–$150,000 | Low-cost, suburban coverage |
❓FAQ on Taxi License Cost in New York NY
Q1. How long does it take to get a taxi license in New York?
Typically 4–6 weeks, including background checks, training, and testing.
Q2. Is it hard to get a taxi medallion in NYC?
Yes, due to limited availability and high prices, but TLC green cab licenses are more accessible.
Q3. How often do you renew a TLC license?
Every 2 years with a $252 renewal fee and updated medical/drug testing.
Q4. Can I drive for Uber or Lyft with a TLC license?
Yes. TLC drivers can operate both traditional taxis and rideshare vehicles with proper endorsements.
Q5. Which borough has the cheapest taxi license cost?
Staten Island and Bronx have the lowest license and medallion prices in 2026.