A Look Into The Cost Of Taxis In NYC

Last Updated on January 21, 2026

Yellow taxis are one of New York City’s most recognizable (and most regulated) ways to get around. Unlike ride-hail apps that can change prices minute-to-minute, yellow cab meter rates and many add-on fees are set by the NYC Taxi & Limousine Commission (TLC).

If you’ve ever wondered why a short trip in heavy traffic costs more than expected, the answer is usually in the details: how the meter calculates time vs. distance, plus surcharges (rush hour, overnight), congestion-related fees, airport fees, tolls, and tip. For drivers and vehicle owners, costs like commercial insurance and licensing also shape the overall economics.

For neighborhood context, it helps to remember NYC pricing and driving conditions can vary by borough—especially in Manhattan, where taxi demand is concentrated. (Related: NYC borough guide.)

How NYC Taxi Fares Work

NYC yellow cabs use a taximeter. The fare starts with an initial charge, then increases based on either distance traveled or time spent in slow traffic/stops—plus any applicable surcharges and fees. The TLC maintains the official breakdown and airport pricing rules on its NYC.gov taxi fare page.

Metered Fare Item	Typical Amount	Notes
Initial charge	$3.00	Starts when the meter is engaged (standard city rate).
Meter increments	$0.70 per 1/5 mile or per 60 seconds	Distance when moving; time when slow/stopped.
MTA State Surcharge	$0.50	Applies to most trips ending in NYC and certain surrounding counties.
Improvement Surcharge	$1.00	A fixed add-on fee.
Overnight surcharge	$1.00	8pm–6am.
Weekday rush hour surcharge	$2.50	4pm–8pm weekdays (excluding holidays).
Congestion-related fees	Varies	NY State congestion surcharge may apply below 96th St; a separate MTA congestion pricing toll may apply below 60th St.
Tolls & tip	Varies	Tolls are added; tip is optional but customary.

Where people get surprised: congestion-related fees and tolls can add a noticeable amount to short Manhattan trips. Also, heavy traffic increases the “time” portion of the meter.

Airport Taxi Pricing in NYC

Airport trips have special rules. For example, trips between Manhattan and JFK use a flat fare (plus add-ons), while LaGuardia and Newark use the meter plus surcharges. Always verify the current airport rules on the TLC taxi fare page before you travel.

Airport Trip	How It’s Priced	Common Add-Ons
Manhattan ↔ JFK	$70 flat fare	MTA/Improvement surcharges, possible rush-hour add-on, congestion-related fees, tolls, tip.
To/From LaGuardia (LGA)	Standard metered fare	$5 airport surcharge (plus other applicable surcharges), tolls, tip.
To Newark (EWR)	Standard metered fare	$20 Newark surcharge, tolls (including return tolls), tip.
Pickups at JFK or LGA	Airport access fee	$1.75 pickup-only airport access fee (in addition to the trip’s pricing method).

Why NYC Taxi Rides Cost More Than You Expect

• Traffic turns into time charges: The meter increases by time when you’re crawling or stopped.
• Peak and overnight add-ons: Rush-hour and late-night surcharges can apply even on short trips.
• Congestion-related fees: Depending on where you travel in Manhattan, you may see a NY State congestion surcharge and/or an MTA congestion pricing toll.
• Tolls are passed through: Bridge and tunnel tolls are added to the fare.
• Tips change the “real” total: Most riders tip (often 15–20%), especially for airport runs and heavy traffic.

What You’re Paying For Behind the Meter

Taxi fares aren’t just fuel and a driver’s time. NYC taxis operate under a commercial model with regulatory requirements, higher-liability insurance expectations, frequent wear-and-tear, and intense urban driving exposure.

A Snapshot of the Yellow Taxi Market

The TLC publishes detailed industry metrics through its Office of Financial Stability (OFS). For calendar year 2024, the OFS annual report notes the city regulates 13,587 medallion taxicabs, with 10,870 completing at least one trip, and more than 41 million total trips.

Metric (Calendar Year 2024)	Reported Figure	Source
Authorized medallion taxicabs	13,587	TLC OFS Annual Report (2024)
Total trips	41,169,638	TLC OFS Annual Report (2024)
Total farebox revenue	$965,887,028	TLC OFS Annual Report (2024)
Average farebox per driver	$48,698	TLC OFS Annual Report (2024)

Important: “Farebox” is not the same as take-home pay. Drivers may pay lease costs, fuel, and other expenses depending on how they work (fleet driver vs. owner-operator).

Commercial Operating Costs

• Insurance and claims: NYC taxis operate commercially and typically require higher minimum coverages than personal auto policies.
• Vehicle upkeep: Frequent stop-and-go driving can mean more brake, tire, and suspension wear.
• Compliance: TLC licensing, inspections, and rule compliance add ongoing costs and administrative work.
• Payment technology: Meter hardware, card processing, and approved e-hail/upfront-price systems are part of modern taxi operations.

Taxi Driver Earnings: Gross vs. Take-Home

NYC taxi driver income varies widely by shift, location, traffic patterns, tips, and whether the driver is leasing a vehicle/medallion from an owner or driving their own. A driver’s gross receipts can look strong on busy weeks, but operating costs (especially lease terms, fuel/charging, and time lost in traffic) are real.

On the national level, the U.S. Bureau of Labor Statistics (BLS) reports a median annual wage for taxi drivers around the mid-$30,000s (recent BLS occupational data). NYC can be higher in good weeks—but costs are also higher, and many drivers work long hours to maintain steady earnings.

If you’re comparing transportation options in the city, keep in mind that public transit pricing and policies also change over time; for example, the MTA implemented a base fare change effective January 2026 and has expanded fare capping via OMNY. (See: MTA fare changes.)

Medallions and Taxi Licenses: What They Cost Today

To legally operate a yellow cab that can pick up street hails, the vehicle must be tied to a taxi medallion. Medallion values famously peaked in the early 2010s and later dropped as app-based ride services expanded. In recent public testimony, medallion values have been described as trading in a much lower range (often under a few hundred thousand dollars), depending on medallion type and transaction terms.

For the latest context on market ranges and transfers, see this NYC Council hearing transcript section: Current medallion values and TLC’s role in the market.

Many drivers don’t buy medallions directly; instead, they drive under fleets or agents who manage medallions and vehicles. This helps explain why fares can feel high: you’re supporting a regulated commercial system with multiple layers of costs and risk.

Because so much of the yellow cab market is centered in Manhattan, local driving exposure and claim frequency can differ from other areas. If you need help with coverage in the city, you can start here: Manhattan insurance agents.

Insurance Requirements for NYC Taxis

NYC taxi insurance is commercial coverage overseen by TLC rules (and coordinated with New York State law). Personal auto insurance typically does not cover fare-paying passenger use. The TLC also publishes minimum insurance requirements by vehicle type and seating capacity; for medallion taxicabs, the minimums include $100,000 per person, $300,000 per occurrence (CSL), and $200,000 in Personal Injury Protection (PIP).

For a deeper breakdown of how TLC policies work, see: TLC insurance requirements. For New York insurance basics more broadly, read: New York insurance basics. Official minimums are posted here: TLC vehicle insurance requirements chart.

Smart Ways to Keep Taxi Costs Down

• Avoid the surcharge window when you can: Rush hour (weekday afternoons) and overnight surcharges add up.
• Minimize toll routes: If you have route flexibility, avoiding bridges/tunnels can reduce the total.
• Use official e-hail options for price certainty: Some TLC-licensed e-hail providers can offer upfront pricing in yellow taxis (check current participating apps on NYC.gov).
• Know airport rules ahead of time: JFK has a flat fare to/from Manhattan; LaGuardia and Newark use different rules.

Final Word

NYC taxi fares can feel high, but they’re built around a regulated commercial system—meter rules, multiple surcharges, congestion-related fees, airport add-ons, and the real costs of operating a heavily used vehicle in dense traffic. The best approach as a rider is to understand what’s on the receipt and which fees are normal for the trip you took.

If you’re a New York driver or vehicle owner looking at coverage options, start with reputable carriers and commercial-appropriate policies. You can compare options here: best auto insurance companies.

Note: Taxi rates, surcharges, and congestion policies can change. For the most current fare rules, always check the TLC’s official taxi fare page before you ride.

FAQs on NYC Taxi Costs