Chicago taxis are operated by private companies and licensed by the city. At present there are about six thousand licensed cabs operating within the city limits. The license is obtained through the purchase or lease of a taxi medallion which is then affixed to the top right hood of the car. Each medallion carries a numeric code, which is also displayed prominently at several locations on and in the taxi. These medallions is strictly controlled to prevent a surplus of cabs, which means that medallions trade at a high price. Chicago taxis can be of any color and drivers are not required to wear uniforms unlike in other cities.

Chicago is heavily populated with taxis, so you shouldn't have a problem finding one. It is fairly easy to flag down a taxi throughout most city neighborhoods, but can often be more difficult in poor or crime ridden areas. Drivers are required to pick up the first or closest passenger they see, and may not refuse a fare anywhere within the city.The passenger is required to pay the amount on the taximeter plus any additional tolls or fees. The initial entry is $2.15 for the first 1/9 of a mile. Then after each additional fraction of a mile charge is $.20 . Plus, each 36 seconds of time elapsed, known as "wait time", is $.20. This charge is in place to ensure the driver still makes money if the cab is stuck in bad traffic. There is a flat fee of $1.00 for the first additional passenger and another $.50 for each additional passenger after that unless the passenger is under 12 or over 65 years of age.

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