Best States for Taxi Driver/Chauffeurs to Start a Home Business
We ranked all 51 states based on licensing requirements, earning potential, LLC costs, and tax burden. Here are the best (and worst) states for taxi driver/chauffeurs.
38 states don't require a license · National median: N/A · Updated 2025
▲ Top 5 Best States
Full Ranking: All 51 States
| # | State | License | Fee | Median Wage | LLC Cost | Score |
|---|---|---|---|---|---|---|
| 1 | California | No | — | $18.51/hr | $70 | 94 |
| 2 | Arizona | No | — | $15.07/hr | $50 | 91 |
| 3 | Missouri | No | — | $17.62/hr | $50 | 91 |
| 4 | New Hampshire | No | — | $16.06/hr | $100 | 87 |
| 5 | Oregon | No | — | $17.18/hr | $100 | 87 |
| 6 | Nevada | No | — | $23.60/hr | $425 | 85 |
| 7 | Colorado | No | — | — | $50 | 83 |
| 8 | Kentucky | No | — | $13.71/hr | $40 | 83 |
| 9 | Maine | No | — | $16.21/hr | $175 | 83 |
| 10 | Minnesota | No | — | $17.72/hr | $155 | 83 |
| 11 | Mississippi | No | — | — | $50 | 83 |
| 12 | Montana | No | — | — | $35 | 83 |
| 13 | Nebraska | No | — | $16.10/hr | $110 | 83 |
| 14 | New Mexico | No | — | — | $50 | 83 |
| 15 | North Carolina | No | — | $16.73/hr | $125 | 83 |
| 16 | Hawaii | No | — | — | $51 | 79 |
| 17 | Idaho | No | — | $13.71/hr | $100 | 79 |
| 18 | Ohio | No | — | — | $99 | 79 |
| 19 | Oklahoma | No | — | — | $100 | 79 |
| 20 | Utah | No | — | $13.16/hr | $54 | 79 |
| 21 | Virginia | No | — | $13.65/hr | $100 | 79 |
| 22 | West Virginia | No | — | — | $100 | 79 |
| 23 | Arkansas | No | — | — | $50 | 78 |
| 24 | Massachusetts | No | — | $15.36/hr | $500 | 78 |
| 25 | Texas | No | — | $17.12/hr | $300 | 78 |
| 26 | Alabama | No | — | — | $200 | 75 |
| 27 | Alaska | No | — | — | $250 | 75 |
| 28 | Florida | No | — | $13.15/hr | $125 | 75 |
| 29 | Illinois | No | — | $14.00/hr | $150 | 75 |
| 30 | North Dakota | No | — | — | $135 | 75 |
| 31 | Pennsylvania | No | — | $14.88/hr | $125 | 75 |
| 32 | South Carolina | No | — | $14.33/hr | $110 | 75 |
| 33 | South Dakota | No | — | $13.17/hr | $150 | 75 |
| 34 | Vermont | No | — | — | $125 | 75 |
| 35 | Wisconsin | No | — | $12.22/hr | $130 | 75 |
| 36 | Wyoming | No | — | — | $102 | 75 |
| 37 | Michigan | Yes | $35 | — | $50 | 73 |
| 38 | Maryland | Yes | $52 | $16.79/hr | $100 | 72 |
| 39 | New York | Yes | — | $19.53/hr | $200 | 70 |
| 40 | Washington | No | — | — | $200 | 70 |
| 41 | Georgia | Yes | $15 | — | $100 | 69 |
| 42 | Indiana | Yes | $19 | — | $100 | 69 |
| 43 | Iowa | Yes | $64 | — | $50 | 68 |
| 44 | Kansas | No | — | $11.95/hr | $165 | 67 |
| 45 | Rhode Island | Yes | $32 | — | $150 | 65 |
| 46 | New Jersey | Yes | $52 | $17.53/hr | $125 | 63 |
| 47 | Delaware | Yes | $68 | — | $110 | 60 |
| 48 | Tennessee | Yes | $4 | — | $300 | 60 |
| 49 | Louisiana | Yes | $154 | — | $100 | 59 |
| 50 | Connecticut | Yes | $88 | — | $120 | 55 |
| 51 | District of Columbia | Yes | $274 | — | $99 | 54 |
▼ 5 Most Challenging States
District of Columbia
Fee: $27454
Connecticut
Fee: $8855
Louisiana
Fee: $15459
Tennessee
Fee: $460
Delaware
Fee: $6860
How We Scored Each State
Each state starts with a base score of 50, then we add or subtract points based on:
- No license required: +20 points (biggest single factor — lower barriers to entry)
- License fee: −10 for fees over $500, −5 for over $300, +10 for under $50
- Wages above national median: Up to +15 points for states paying 20%+ above national median
- LLC formation cost: +8 for states under $50, −5 for states over $300
- No sales tax on services: +5 points
Data sources: Institute for Justice License to Work 3 (licensing), BLS OEWS May 2024 (wages), state Secretary of State offices (LLC costs). This ranking reflects factors relevant to home-based operators — commercial location costs, local zoning, and cost of living are not included.
Found your state?
Get the full step-by-step guide for starting your home taxi driver/chauffeur business.
View All Taxi Driver/Chauffeur State Guides