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Is a taxi driver good money?

Taxi Drivers made a median salary of $29,310 in 2021. The best-paid 25% made $33,620 that year, while the lowest-paid 25% made $23,950.



Whether a taxi driver makes "good money" in 2026 depends heavily on location, vehicle ownership, and hours worked. In high-demand cities like New York, London (Black Cabs), or Tokyo, a seasoned driver can earn between $50,000 and $90,000 annually, especially if they own their medallion or license and work peak "surge" hours. However, the overhead costs are substantial: fuel, insurance, maintenance, and the "lease" or "medallion" fees can eat up 40% to 60% of gross earnings. In many regions, the rise of rideshare platforms like Uber and Lyft has squeezed profit margins for traditional taxi drivers, leading many to work 12-hour shifts just to break even. Conversely, in cities where taxis are highly regulated or have exclusive airport access, the income remains more stable. Many modern drivers supplement their income by using multiple apps or specializing in "executive" or "long-haul" private hires. Ultimately, while it provides a flexible living and the potential for decent cash flow, it is rarely considered "easy money" due to the physical toll of driving and the high operational costs associated with maintaining a commercial vehicle in a competitive market.

People Also Ask

But for the most part, a cab company owns the vehicle. They lease it to their drivers who in turn get to keep 100% of the fares and tips (some companies charge less for the lease, but retain a portion of the fares).

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According to data from the Bureau of Labor Statistics (BLS), the median annual salary for taxi drivers and chauffeurs in the US is $30,050. This works out at around $14.50 an hour. Taxi drivers earn much lower than the average salary in the US.

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Being paid with cash means drivers have money ready to pay for ongoing costs such as fuel, repairs and maintenance. While many card transactions can be instant, some can take days to process and the driver has to wait for the money to reach their account. They may also pay a charge for each electronic transaction.

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Determining a taxi driver's pay varies based on several factors. If you own your own taxi, you get to keep the entire fare, minus expenses. If you lease, you must pay a daily rate out of your incoming fares, plus the cost of gas. Some companies take a percentage of your fare instead of a flat-rate lease payment.

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An autodidact who formerly worked as a taxi driver, he has built his fortune since the mid-1980s by investing in stock trading, real estate and pharmaceuticals.

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Research has shown that taxi drivers are at risk for numerous health concerns, such as low back and leg pain, linked to their highly sedentary occupation, long work hours and stressors related to the job (e.g. low income, safety threats).

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Skills and qualities
  • to be a confident driver who is able to drive well in any road and weather conditions.
  • a helpful, trustworthy and patient manner.
  • some number skills, as you'll be dealing with cash a lot.
  • to be able to deal with all types of people including the occasional awkward or difficult customer.


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From Driver Rule 54-20 (in PDF): It is against the law to refuse a person based on race, disability, or a destination in New York City. A taxicab driver is required to drive a passenger to any destination in the five boroughs. You can make a refusal complaint by calling 3-1-1.

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Taxi drivers can ask passengers to pay their fare at any point during a journey – even before the ride has begun. The biggest reason for this is to stop passengers leaving without paying or refusing to pay the full fare for a journey which, to be clear, is theft.

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You can pay for rides by cash or card. To pay for rides by card, first add the card in the app. You can add up to 5 cards.

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Taxi drivers typically site that the ridesharing services are not as safe and don't have the same types of standards and insurance that taxi drivers must carry. They often argue that these apps get around the taxi laws by offering technology that blurs the line between traditional taxi services and ridesharing apps.

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Yes, taxi cab driver jobs are in demand. Taxi cab driver demand is projected to grow 20% from 2018 to 2028.

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The majority of cabbies are self employed in that they do not work for the cab company ( which actually owns the vehicle and the medallion) but, rent the vehicle daily. So, before they even step foot in the cab they are dealing with vehicle rental, and gas.

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