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 yellow taxi, green taxi (street hail livery), or for-hire vehicle like Uber or Lyft in the five boroughs. You need one if you drive passengers for money in New York City, whether you own your own vehicle or lease one from a fleet. The TLC does not regulate Uber and Lyft directly anymore — those companies handle their own driver screening — but you still need a TLC license to drive for them legally.

The process differs depending on whether you want to drive a yellow taxi (medallion owner or lease), a green taxi, or a for-hire vehicle. Each has its own requirements, costs, and wait times. This guide covers the main routes and what to expect at each step.

Key Takeaways

  • You must pass a TLC knowledge test, a drug test, and a background check before you receive any license.
  • Yellow taxi medallions cost tens of thousands of dollars to buy or lease, while green taxi and for-hire licenses have lower upfront costs.
  • The TLC knowledge test covers New York City geography, traffic laws, and passenger safety; you study from an official TLC handbook and can take practice tests online.
  • After you pass the knowledge test and background check, the TLC issues a temporary license while your permanent license is printed, which takes a few weeks.
  • You must renew your TLC license every two years and pay a renewal fee.

The TLC Knowledge Test and What It Covers

Before you can get a license, you must pass the TLC knowledge test, a written exam that covers New York City streets, traffic laws, passenger rights, and safe driving. The test has 50 multiple-choice questions and you need a score of at least 70 percent to pass. You get two hours to complete it. The test is offered in multiple languages, including English, Spanish, Mandarin, Russian, and others — check the TLC website for the full list.

Study using the official TLC handbook, which is free and available on the TLC website. The handbook covers the five boroughs' street grid, major landmarks, traffic rules specific to New York City, and what to do if a passenger refuses to pay or becomes aggressive. Many test-takers use the TLC's online practice tests, which are also free. You can take the practice test as many times as you want before you sit for the real exam. Most people spend two to four weeks studying before they feel ready.

To register for the test, you go to the TLC's website, create an account, and choose a test date and location. The TLC has testing centers in Manhattan, Queens, and Brooklyn. There is no fee to take the test itself. You will need to bring a photo ID and proof of your Social Security number or Individual Taxpayer Identification Number (ITIN).

Background Check and Medical Requirements

After you pass the knowledge test, the TLC runs a background check. You must have a valid driver's license, a clean driving record (no serious violations in the past three years), and no felony convictions. The TLC also checks for drug use — you will be required to take a drug test at a TLC-approved facility. The test screens for common drugs including marijuana, cocaine, and opioids. You pay for the drug test yourself, usually between $50 and $100 depending on the facility.

You also need to pass a medical exam to show you are physically fit to drive. The exam is basic — a doctor checks your vision, hearing, and general health. You can use your own doctor if they are willing to fill out the TLC medical form, or you can go to a TLC-approved clinic. The medical exam costs between $50 and $150. Some clinics charge more if you need additional tests.

The background check takes one to two weeks. If the TLC finds a problem — a suspended license, an unpaid traffic fine, or a disqualifying criminal record — they will deny your process and tell you why. You can appeal a denial, but the process is lengthy.

Yellow Taxi Medallion: Buying or Leasing

If you want to drive a yellow taxi, you need a medallion, which is a license to operate a specific yellow cab. Medallions are expensive and the supply is limited. You can either buy one outright or lease one from someone who owns it.

Buying a medallion means paying a large upfront cost — medallion prices have ranged from $100,000 to over $1 million in recent years, depending on market conditions. Once you own the medallion, you own the right to drive that cab. You pay the TLC an annual license fee (currently around $360 per year) and you are responsible for maintaining the vehicle, paying for gas, and keeping insurance. Many owner-operators work long hours — 12 to 14 hours a day — to cover their costs and earn income.

Leasing a medallion means paying a weekly or monthly fee to someone who owns it. Weekly lease payments typically range from $400 to $700, depending on the medallion and the owner. You do not own the medallion, so if you stop leasing it, you have no asset to show for the money you paid. However, leasing lets you start driving without a huge upfront investment. You still need to pass the knowledge test and background check, and you still pay for gas, maintenance, and insurance.

To find a medallion to lease, you can contact medallion brokers, check classified ads, or ask other drivers. The TLC maintains a list of licensed medallion brokers on its website. Before you lease, make sure the medallion is in good standing with the TLC and that the lease agreement is clear about who pays for repairs and insurance.

Green Taxi and For-Hire Vehicle Licenses

A green taxi license (street hail livery) lets you pick up passengers who hail you on the street, but only in upper Manhattan and the outer boroughs — not below 96th Street in Manhattan. Green taxis are cheaper to operate than yellow taxis because you do not need to buy or lease a medallion. Instead, you pay the TLC a one-time license fee of around $264 and an annual renewal fee. You still need to pass the knowledge test and background check.

A for-hire vehicle license is what you need to drive for Uber, Lyft, or other ride-hailing apps. The TLC issues these licenses, but the companies themselves also screen drivers. You must pass the TLC knowledge test, background check, and drug test. You also need to have your vehicle inspected by the TLC to make sure it meets safety standards — the vehicle must be less than 10 years old, have four doors, and pass an emissions test. The TLC license fee for a for-hire vehicle is around $264, with an annual renewal fee of the same amount.

For-hire vehicle drivers often work for themselves and use their own car, or they lease a vehicle from a fleet. If you lease from a fleet, the fleet company handles some paperwork and may provide insurance, but you pay a daily or weekly lease fee (typically $50 to $150 per day). If you own your own car, you need commercial auto insurance, which costs more than personal insurance.

The process Process and Timeline

Once you have passed the knowledge test, drug test, medical exam, and background check, you submit your process to the TLC. You do this online through the TLC's website or in person at a TLC office. You will need to provide your Social Security number or ITIN, proof of residency (a utility bill or lease), a copy of your driver's license, and proof that you passed the drug test and medical exam.

The TLC reviews your process and, if everything is in order, issues a temporary license within one to two weeks. The temporary license is valid for 30 days and lets you start driving while the TLC prints your permanent license. Your permanent license arrives by mail, usually within two to four weeks. Once you have the permanent license, you can drive indefinitely until it expires.

The entire process from the day you register for the knowledge test to the day you receive your permanent license typically takes six to twelve weeks, depending on how quickly you study and pass the test, and how busy the TLC is. If you fail the knowledge test, you can retake it after 14 days.

Costs and Renewal

The total cost of getting a TLC license varies widely depending on which type of license you pursue. For a green taxi or for-hire vehicle license, expect to spend $300 to $500 on the TLC license fee, drug test, and medical exam — not including any vehicle costs or lease payments. For a yellow taxi medallion, the cost is much higher: leasing typically costs $400 to $700 per week, and buying can cost $100,000 or more.

Your TLC license expires every two years. To renew, you pay a renewal fee (around $360 for yellow taxis, $264 for green taxis and for-hire vehicles) and submit a renewal process. You do not have to retake the knowledge test to renew, but you may need to pass another drug test or medical exam depending on the TLC's current rules. Check the TLC website before your license expires to see what renewal requirements explore.

Frequently Asked Questions

Do I need a TLC license if I drive for Uber or Lyft?

Yes. Even though Uber and Lyft screen their own drivers, you still need a TLC for-hire vehicle license to drive for them legally in New York City. The TLC requires you to pass a knowledge test, background check, and drug test, and your vehicle must pass a TLC inspection.

What happens if I fail the knowledge test?

You can retake the test after 14 days. There is no limit on how many times you can take it. Most people pass on the second or third attempt after studying the TLC handbook more thoroughly.

Can I get a TLC license if I have a criminal record?

It depends on the crime. Felonies generally disqualify you, as do certain misdemeanors involving violence, drugs, or dishonesty. The TLC reviews each case individually. If you have a record, contact the TLC before you explore to ask whether you are disqualified.

How much can I earn driving a yellow taxi or green taxi?

Earnings vary widely based on hours worked, location, and time of day. Yellow taxi drivers typically earn between $200 and $400 per shift after paying for gas and lease fees, but this varies. Green taxi and for-hire vehicle drivers often earn less per hour but have more flexibility in their schedule.

What if my TLC license is suspended or revoked?

The TLC can suspend or revoke your license for serious violations like driving under the influence, refusing a drug test, or multiple traffic violations. If your license is suspended, you cannot drive for money until the suspension is lifted. You have the right to a hearing before the TLC takes action.