What a TLC License Is and Who Needs One
A TLC license is a medallion or license plate issued by the New York City Taxi and Limousine Commission that lets you legally operate a for-hire vehicle in the city. You need one if you want to drive a yellow taxi, a green Boro taxi, or a licensed for-hire vehicle like Uber or Lyft. Without it, picking up passengers for money is illegal in New York City.
The TLC does not issue licenses to individuals who want to drive for Uber or Lyft — those companies handle their own driver screening. But if you want to own and operate your own yellow or green taxi, or drive for a traditional car service, you will need a TLC license. The process, timeline, and cost depend on which type of vehicle you want to operate.
Key Takeaways
- Yellow taxi medallions are the most expensive route and require you to own the medallion outright or lease one; green Boro taxis are cheaper but limited to trips outside Manhattan below 96th Street.
- You must pass a TLC knowledge exam, a drug test, a background check, and a driving record review before you can receive any license.
- The TLC knowledge exam covers New York City geography, traffic laws, passenger rights, and safe driving; you can study using the official TLC handbook available on the TLC website.
- The entire process from process to license issuance typically takes four to eight weeks if you pass all requirements on your first attempt.
- If you want to drive for Uber, Lyft, or another app-based service, you do not go through the TLC — you explore directly to the company, which has its own background check and vehicle requirements.
Yellow Taxi Medallions: Cost and Ownership
A yellow taxi medallion is a license to operate a yellow cab anywhere in New York City. Medallions are owned assets — you either buy one outright or lease one from someone who owns it. The cost to buy a medallion varies; prices have ranged from roughly $100,000 to over $1 million depending on market conditions and the medallion's history. Leasing a medallion typically costs between $800 and $1,500 per week, though this varies by lessor.
Once you own or lease a medallion, you must register it with the TLC and pass the licensing requirements. The medallion itself is the hard part — the license follows once you meet the TLC's standards. If you do not own a medallion and cannot afford to buy or lease one, this route is not available to you.
Green Boro Taxi Licenses: Lower Cost, Limited Service Area
A green Boro taxi license lets you pick up passengers in the outer boroughs — the Bronx, Brooklyn, Queens, and Staten Island — and in Manhattan above 96th Street. You cannot pick up passengers in Midtown or lower Manhattan. Green licenses are cheaper than yellow medallions; you can lease a green taxi vehicle for roughly $400 to $800 per week, depending on the car service or fleet operator.
Like yellow medallions, you need a green license issued by the TLC. The process and exam process is the same as for yellow taxis, but the service area is restricted. If you want to work only in the outer boroughs or northern Manhattan, this is a lower-cost entry point.
For-Hire Vehicle Licenses and Car Services
If you want to drive for a traditional car service — not Uber or Lyft, but a local dispatch company — you may need a for-hire vehicle license from the TLC. Some car services operate under their own TLC license and hire drivers as employees; in that case, you do not need your own TLC license. Other services require drivers to hold their own for-hire license.
Before you pursue a for-hire license, contact the car service you want to work for and ask whether they require you to hold a TLC license or whether they cover it as part of their company license. This will save you time and money if the company handles licensing for its drivers.
The TLC Knowledge Exam and Other Requirements
Before the TLC issues any license, you must pass a written knowledge exam. The exam covers New York City street geography, traffic laws, passenger rights, safe driving practices, and TLC rules. You have two hours to complete it. The TLC provides a free handbook called the "TLC Driver's Manual" on its official website; this is the primary study material. You can also take practice tests online through the TLC website.
You must also pass a drug test, a background check, and a driving record review. The TLC will check your criminal history, driving violations, and insurance claims. If you have serious felonies, multiple DUI convictions, or a suspended license, you will be denied. The exact standards are published on the TLC website.
The exam costs roughly $65 to $75, and you can take it at a TLC testing center in Manhattan. You must bring a valid photo ID and proof of Social Security number. If you fail the exam, you can retake it, but you will need to pay the fee again.
how the process works and What Documents You Need
To explore for a TLC license, you must submit an process to the TLC in person or through the mail. You will need a valid driver's license, proof of New York State residency (a utility bill or lease agreement dated within the last 60 days), proof of Social Security number, and a completed TLC process form. The process form is available on the TLC website.
If you are explore for a yellow medallion, you must also provide proof that you own or lease the medallion. If you are explore for a green license, you must provide proof of a vehicle registration in your name or the name of the fleet operator you work for. The TLC will tell you exactly what documents are required when you call or visit their office.
Once you submit your process, the TLC will schedule you for a drug test and background check. These typically happen within one to two weeks. After you pass those, you will be scheduled for the knowledge exam. If you pass the exam, the TLC will issue your license within a few days.
Timeline: How Long the Process Takes
The entire process from process to license issuance usually takes four to eight weeks. This timeline assumes you pass all requirements on your first attempt. If you fail the knowledge exam, you will need to retake it, which adds another week or two. If your background check raises questions, the TLC may request additional documents or information, which can extend the timeline by several weeks.
The slowest part is usually the background check and drug test scheduling, not the exam itself. Call the TLC office to confirm your appointment dates and ask whether you can expedite any steps. The TLC office is located at 33 Beaver Street in Manhattan, and you can reach them by phone during business hours.
Frequently Asked Questions
Do I need a TLC license to drive for Uber or Lyft?
No. Uber and Lyft are app-based services that operate under their own TLC licenses. You explore directly to the company, not to the TLC. Uber and Lyft handle their own background checks and vehicle inspections. You will need a valid driver's license, proof of insurance, and a vehicle that meets their standards, but you do not need a separate TLC license.
What happens if I fail the TLC knowledge exam?
You can retake the exam. There is no limit on the number of times you can take it, but you must pay the exam fee each time. Most people pass on the second or third attempt. Study the TLC Driver's Manual thoroughly and take the practice tests on the TLC website before your next attempt.
Can I get a TLC license if I have a criminal record?
It depends on the type of crime and how long ago it occurred. The TLC denies licenses for serious felonies, violent crimes, and sex offenses. Minor misdemeanors or crimes more than five to seven years old may not disqualify you. Contact the TLC directly with details of your record, and they can tell you whether you are may be able to access before you pay the process fee.
What is the difference between leasing and owning a medallion?
If you own a medallion, you own an asset that you can sell or pass on. If you lease one, you pay a weekly fee to the owner and have no ownership stake. Leasing is cheaper upfront but costs more over time. Owning requires a large initial investment but gives you long-term control and the ability to build equity.
How much money can I make as a TLC-licensed taxi driver?
Income varies widely depending on the hours you work, the neighborhood you serve, and current demand. Yellow taxi drivers in Manhattan typically earn more than green taxi drivers in the outer boroughs. After paying for the medallion lease or purchase, fuel, insurance, and maintenance, net income ranges from roughly $30,000 to $60,000 per year, though this varies significantly by individual and market conditions.