The cost of a taxi licence depends on where you live, the type of licence you need, and a few additional requirements. In total, most drivers can expect to pay somewhere between £250 and £1,000 when getting licensed for the first time. Here’s a clear breakdown of what that covers and what to budget for.
Taxi insurance
Once you’ve got your licence, make sure you’re properly covered. Get a taxi insurance quote from insurd in minutes.
Types of taxi licence
There are two main types of taxi licence in the UK, and the costs differ slightly between them:
- Hackney carriage licence — allows you to pick up passengers from the street or a taxi rank without a prior booking.
- Private hire vehicle (PHV) licence — requires all journeys to be pre-booked. You cannot pick up passengers on the street.
If you’d like, you can read more about the differences in our guide to public hire vs private hire taxi insurance.
What does the cost include?
A taxi licence isn’t a single fee. It’s made up of several separate costs. Here’s what you’ll typically need to pay for.
Initial application fee
This covers the processing of your application and initial background checks. Fees generally range from £50 to £200 depending on your local council.
Knowledge test fee
Most local authorities require you to pass a knowledge test covering local roads, landmarks, and routes. The test itself usually costs between £25 and £75. Take a look at our guide on [how to pass a taxi knowledge test] to help you prepare.
Medical examination
You’ll need to pass a medical to confirm you’re fit to drive. This is usually carried out by your own GP and costs between £80 and £150.
DBS check
A Disclosure and Barring Service check is required to confirm you have no criminal convictions that would disqualify you. This typically costs around £50.
Vehicle licensing fee
If you’re using your own vehicle, it needs to be licensed separately and will need to pass a safety inspection. Vehicle licensing fees vary widely — typically between £100 and £400.
How much does a taxi licence cost in different areas?
Fees vary significantly between councils. Here are a few examples to give you a sense of the range:
- Reigate and Banstead Council — initial application fees start from around £56.
- Leeds City Council — a new hackney carriage licence costs approximately £282, with additional costs for the knowledge test and vehicle inspection.
- Wigan Council — initial application fees start at around £94, with separate costs for the DBS check and medical examination.
These figures are a guide only and may have changed. Always check with your local council directly for the most up-to-date fees before applying.
Ongoing costs to budget for
Once you have your licence, there are regular costs to factor in too.
Licence renewal — taxi licences need to be renewed periodically, usually every one to three years. Renewal fees typically range from £50 to £300 depending on your council.
Vehicle maintenance and inspections — your vehicle will need to stay in good condition and pass regular safety checks. Budget for routine servicing and any periodic inspection fees on top of your initial costs.
How to apply for a taxi licence
The process is broadly the same across most areas. You can read the full step-by-step in our guide on how to become a taxi driver. But, here’s a quick summary:
- Check that you meet the eligibility requirements. Such as, minimum age and a valid UK driving licence
- Study for and pass the local knowledge test
- Book and pass your medical examination
- Complete a DBS check
- Submit your application with all required documents and fees
- Have your vehicle inspected if you’re using your own car
- Receive your licence and start operating
Ready to apply?
A taxi licence costs anywhere from £250 to £1,000 for most drivers, which often depends on your local authority and licence type. It’s worth budgeting for each element separately rather than treating it as a single fee, so nothing catches you out during the process.
Once your licence is in place, the next step is getting the right insurance. Get a taxi insurance quote from insurd today.
