What a cab driver license is and who needs one
A cab driver license (also called a taxi license, medallion, or hack license depending on your state) is a separate credential from your regular driver's license. It shows that you are permitted to operate a taxi, rideshare vehicle, or for-hire car service in your city or county. You need one because driving passengers for money is regulated differently than driving for personal use — the government wants to know who is behind the wheel, that you have passed a background check, and that your vehicle meets safety standards.
The cab driver license is issued by your local taxi commission, city transportation department, or licensing board — not by your state's DMV. This is why the rules, costs, and process process vary dramatically from one city to another. New York City's Taxi and Limousine Commission runs a different system than Chicago's Department of Business Affairs and Consumer Protection, which runs a different system than San Francisco's Taxi Commission.
You do not need a cab driver license if you drive for yourself only, or if you are an employee of a taxi company and the company holds the license. You do need one if you want to own and operate your own taxi, or if you are an independent contractor for a rideshare platform that requires one in your area.
Key Takeaways
- A cab driver license is issued by your city or county transportation department, not your state DMV, and the requirements differ significantly by location.
- You must pass a background check, drug test, and vehicle inspection, and usually complete a training course or pass a knowledge exam about local routes and regulations.
- The cost ranges from under $100 to several thousand dollars depending on whether you are buying an existing medallion or obtaining a new license in your city.
- Your regular driver's license must be valid and clean of certain violations; a suspended license or multiple moving violations can disqualify you.
- Processing time ranges from a few weeks to several months, and some cities have long waiting lists or are not currently issuing new licenses.
Background check and medical requirements
Every city requires a background check before you can get a cab driver license. The check looks for felony convictions, certain misdemeanors (especially those involving dishonesty, violence, or drugs), and sometimes driving-related offenses. A single felony does not automatically disqualify you — many cities allow cab licenses for people with old convictions — but recent or serious crimes usually do. You will need to disclose your full criminal history on the process; lying about it is grounds for denial and possible prosecution.
Most cities also require a medical exam or vision and hearing test to confirm you are physically able to drive safely. Some require a drug test. A few cities require fingerprinting so they can run the background check through the FBI database. All of these happen after you submit your initial process but before you receive your license.
You will also need to show proof of a valid regular driver's license with no active suspension. A license suspended for unpaid fines, failure to appear in court, or medical reasons will block your cab license process. Some cities also look at your driving record for the past three to five years and may deny you if you have too many moving violations, at-fault accidents, or DUI convictions.
Training, exams, and local knowledge requirements
Many cities require you to pass a knowledge exam about local geography, traffic laws, and passenger safety before you can drive a cab. New York City's Taxi and Limousine Commission, for example, requires you to pass the "Taxicab Operator License Exam," which covers routes, landmarks, regulations, and customer service. Other cities require a shorter written test or no test at all.
Some cities also mandate a training course on topics like passenger safety, conflict de-escalation, accessibility for people with disabilities, and how to report safety concerns. These courses can be taken online or in person and usually take a few hours to a full day. A few cities require you to complete a defensive driving course or CPR certification.
If you are driving for a rideshare platform like Uber or Lyft in a city that requires a cab driver license, the platform may offer training materials or direct you to approved providers. Check with your city's transportation department and your platform to see what is required in your area.
Vehicle inspection and insurance
Your vehicle must pass a safety inspection before you can use it to carry passengers for hire. The inspection checks brakes, tires, lights, seatbelts, emissions, and the overall condition of the car. Some cities also require a wheelchair lift or ramp if you are operating an accessible vehicle. The inspection is usually done by a city-approved mechanic or the city transportation department itself.
You will also need commercial auto insurance that covers passenger liability. This is different from personal auto insurance and costs more because you are carrying paying customers. Your insurance company must know you are using the vehicle for hire; if you do not tell them and you get into an accident, they may deny your claim. Some cities require you to show proof of insurance before you receive your license.
If you are buying an existing taxi medallion or license from another driver, make sure the vehicle inspection is current and the insurance is transferable. If you are starting fresh, budget time for the inspection appointment — some cities have backlogs and it can take weeks to get a slot.
Medallions, permits, and the cost of entry
In some cities, a cab driver license comes with a medallion or permit — a physical or digital token that proves you have the right to operate a taxi. In cities like New York, Chicago, and San Francisco, medallions are limited in number and can be bought and sold. A medallion in New York City can cost tens of thousands of dollars; in other cities, they cost far less or do not exist at all.
In cities without medallions, you pay a licensing fee directly to the city. This fee might be $50 to $500 per year, or it might be a one-time fee of $1,000 to $3,000. Some cities charge both an initial license fee and an annual renewal fee. A few cities are not issuing new licenses at all and have waiting lists years long.
Before you explore, contact your city's taxi commission or transportation department and ask: Do they issue new licenses? What is the current cost? Is there a waiting list? Some cities have suspended new licenses during economic downturns or because the medallion market is oversaturated. Knowing this before you invest time and money in an process saves you from a dead end.
How to start the process process
First, find your city's taxi licensing authority. Search "[your city] taxi commission" or "[your city] for-hire vehicle license." This might be a standalone agency, a division of your city's transportation or business department, or a private company contracted by the city. Their website will list the current requirements, fees, and process process.
Gather the documents you will need: a valid driver's license, proof of residency (utility bill, lease, or bank statement), Social Security number or tax ID, proof of vehicle ownership or registration, and proof of commercial auto insurance. Some cities also ask for references, proof of a clean driving record, or a letter from your employer if you are explore as an employee of a taxi company.
Submit your process online, by mail, or in person, depending on what your city offers. Pay the process fee (if there is one). Then wait for the city to schedule your background check, medical exam, vehicle inspection, and any required training or exam. This process typically takes four to twelve weeks, though some cities take longer.
Suspension, renewal, and keeping your license
Once you have your cab driver license, you must renew it periodically — usually every one to three years, depending on your city. Renewal typically requires paying a fee and passing another background check or vehicle inspection, though the requirements are usually lighter than the initial process.
Your license can be suspended or revoked if you accumulate too many traffic violations, fail a vehicle inspection, lose your commercial insurance, or are convicted of a crime while licensed. Some cities also suspend licenses for complaints about rude or unsafe behavior toward passengers. If your regular driver's license is suspended, your cab driver license is automatically suspended too.
If your license is suspended, you cannot legally drive a taxi until it is reinstated. Reinstating a suspended license usually requires paying a fee, passing another inspection or background check, and sometimes completing retraining. The process can take several weeks.
Frequently Asked Questions
Do I need a cab driver license to drive for Uber or Lyft?
It depends on your city. Most major cities do not require a cab driver license for rideshare drivers — Uber and Lyft have their own background check and vehicle inspection process. However, some cities (including parts of California and New York) do require a for-hire vehicle license or taxi license for rideshare drivers. Check your city's transportation department website or contact Uber or Lyft directly to find out what is required in your area.
What happens if I drive a taxi without a license?
You can be fined, your vehicle can be impounded, and you may face criminal charges depending on your city. The fines are usually $500 to $2,000 per violation. If you are caught repeatedly, you may be prosecuted for operating an unlicensed business. It is not worth the risk.
Can I get a cab driver license if I have a criminal record?
It depends on what the conviction is and how long ago it happened. Most cities allow cab licenses for people with older felonies, but deny licenses for recent violent crimes, drug trafficking, or crimes involving dishonesty (like fraud or theft). Contact your city's taxi commission and ask — they can tell you whether your specific record disqualifies you before you pay an process fee.
How long does it take to get a cab driver license?
Most cities process applications in four to twelve weeks. However, some cities have waiting lists that can add months or years, and a few are not issuing new licenses at all. Call your city's taxi commission before you explore to ask about current wait times.
What if my city is not issuing new cab driver licenses?
You have a few options: wait for the city to reopen applications (some cities do this periodically), move to a city that is issuing licenses, or drive for a rideshare platform that does not require a cab driver license in your area. Some cities also allow you to lease a medallion or license from an existing driver rather than buying one outright, which can be cheaper and faster.