Taxi Drivers

Earnings for taxi drivers vary widely, depending on the number of hours they work, the method by which they are paid, the season, the weather, and other factors. Median hourly earnings of salaried taxi drivers, including tips, were $16.67 in May 2023, according to the U.S. Department of Labor. This translates to about $34,680 annually for full-time work. Hourly wages for all passenger vehicle drivers ranged from less than $13.00 to more than $19.53 an hour. This range translates to an annual wage range of between $27,040 and $40,630 for full-time work.

Limited information suggests that independent owner-drivers can average anywhere between $20,000 to $30,000 annually, including tips. This assumes they work the industry average of eight to 10 hours a day, five days a week. Many chauffeurs who worked full time earned from about $25,000 to $50,000 or more, including tips.

Many taxi drivers are paid a percentage of the fares they collect, often 40 to 50 percent of total fares. Other drivers receive a base amount plus a commission related to the amount of business they do. A few drivers are guaranteed minimum daily or weekly wages. Drivers who lease their cabs may keep all the fare money above the amount of the leasing fee they pay the cab company. Tips are also an important part of the earnings of taxi drivers. They can equal 15 to 20 percent or more of total fares. Most taxi drivers do not receive company-provided fringe benefits, such as pension plans.

Earnings fluctuate with the season and the weather. Winter is generally the busiest season, and snow and rain almost always produce a busy day. There is also a relationship between general economic conditions and the earnings of taxi drivers, because there is more competition for less business when the economy is in a slump.