Most taxi drivers in the UK earn between £25,000 and £35,000 per year before expenses, with some full-time or experienced drivers earning £40,000 or more depending on location and hours worked.
According to Indeed, the average taxi driver salary in the UK is around £32,000 per year, although this varies widely.
(Source: https://uk.indeed.com/career/taxi-driver/salaries)
These figures represent gross earnings, meaning costs such as fuel, insurance, and vehicle maintenance still need to be deducted.
Taxi driver income isn’t fixed, and what you earn will depend on factors like where you work, how many hours you drive, and the type of jobs you take on. Understanding these variables can help you build a more realistic picture of your potential earnings.
How Much Do Taxi Drivers Earn Per Hour?
Most UK taxi drivers earn £15 to £25 per hour before expenses.
Earnings can fluctuate depending on demand. For example:
- Peak times (evenings, weekends, events) can increase hourly income
- Quieter periods may reduce earnings
- Cities and busy towns tend to offer more consistent work
Ride-hailing platforms such as Uber also highlight that earnings vary depending on when and where you drive.
(Source: https://www.uber.com/gb/en/drive/how-much-drivers-make/)
Read our guide to how much an Uber driver can make for more information on Uber driver earnings
How Much Do Taxi Drivers Earn Per Week and Per Year?
Average Weekly earnings
- Part-time drivers: £300 to £800
- Full-time drivers: £800 to £1,500+
Average Annual earnings
- Lower range: £20,000 to £25,000
- Typical range: £25,000 to £35,000
- Higher range: £40,000+
Glassdoor estimates average UK taxi driver earnings at around £26,000 to £30,000 per year, depending on experience and location.
(Source: https://www.glassdoor.co.uk/Salaries/taxi-driver-salary-SRCH_KO0,12.htm)
As with hourly figures, these are before expenses, which can significantly affect what you take home.
What Affects How Much Taxi Drivers Earn?
Taxi driver earnings can vary widely depending on your circumstances. Key factors include:
Location
Drivers in larger cities often have access to more work, although competition and costs may also be higher.
Hours worked
Working longer hours, particularly during busy periods, can increase overall earnings.
Type of work
Different types of taxi driving can affect income, including:
- Private hire (pre-booked journeys)
- Ride-hailing apps like Uber or Bolt
- Local contracts (e.g. school runs or airport transfers)
Experience and efficiency
Drivers who know their local area well and plan their working hours effectively may be able to maximise their earnings.
What Costs Do Taxi Drivers Need to Consider?
To understand your real income, it’s important to factor in the costs involved in taxi driving:
- Taxi insurance (a legal requirement)
- Fuel or electric charging
- Vehicle purchase or finance
- Maintenance and repairs
- Licensing fees
- Platform commissions (for app-based work)
These expenses can take a significant portion of your earnings, so it’s important to budget carefully.
Read our article to find out more about The Costs of Running a Taxi in the UK.
What Do Taxi Drivers Actually Take Home?
After expenses, many taxi drivers take home around £10 to £18 per hour, although this varies depending on costs and working patterns.
For example:
- Weekly earnings: £1,000
- Estimated running costs: £300–£500
- Remaining income: £500–£700 (before tax)
Your take-home pay will depend on:
- Fuel efficiency
- Insurance costs
- Vehicle type
- How efficiently you work
This is why it’s important to look beyond headline earnings and consider your full financial situation.
Can Taxi Driving Be a Good Source of Income?
Taxi driving can offer a flexible way to earn a living, particularly if you:
- Work during peak demand times
- Operate in busy areas
- Manage your running costs effectively
However, earnings can vary from week to week, so it’s important to plan for fluctuations and have a clear understanding of your expenses.
Tips to Increase Taxi Driver Earnings
If you’re looking to improve your income, you could consider:
- Working peak hours (evenings, weekends, events)
- Positioning yourself in high-demand areas
- Combining different types of work where appropriate
- Keeping your vehicle efficient and well maintained
Small adjustments to how and when you work can make a noticeable difference over time.
Frequently Asked Questions
Do taxi drivers make good money in the UK?
Taxi driving can provide a steady income, but earnings vary depending on hours worked, location, and expenses.
How much do Uber drivers earn compared to taxi drivers?
Earnings are often similar, although app-based drivers may pay commission fees, while traditional taxi drivers may rely more on local bookings.
Is taxi driving profitable after expenses?
It can be, but profitability depends on managing costs such as fuel, insurance, and vehicle maintenance.
How many hours do taxi drivers typically work?
Many full-time drivers work between 40 and 60 hours per week, often including evenings and weekends.
Do taxi driver earnings vary by city?
Yes, earnings can vary significantly depending on demand, with larger cities typically offering more opportunities.
Final Thoughts
Taxi driver earnings in the UK can be flexible and potentially rewarding, but they depend on a range of factors. By understanding both the earning potential and the costs involved, you can make a more informed decision about whether taxi driving is right for you.
If you’re considering becoming a taxi driver, taking time to research your local area and expected expenses can help you plan with confidence.