The number climbing on a London taxi meter looks arbitrary from the back seat. It is not. It is the output of a rate structure set by Transport for London, and once you know which of the three tariff bands you are travelling in — and what the meter charges for besides distance — the fare stops being a surprise and becomes something you can estimate before you set off.
Key takeaways
- Three bands: decided purely by the day and time of travel
- Time counts: the meter charges for time as well as distance, so traffic costs money
- Extras exist: certain pickups and payment methods carry additions
- Regulated: the rate cannot rise just because demand did
How the meter actually thinks
A London taxi meter is not simply a distance counter. It runs on whichever is accruing faster — distance covered or time elapsed — which is why a two-mile crawl through congestion can cost more than a four-mile run on a clear road. That mechanism explains almost every fare that felt unexpectedly high: you were not overcharged, you were stationary. It is also why the meter is at its most competitive on short free-flowing journeys and at its least on long ones in traffic.
The three tariff bands
Tariff 1 covers the standard weekday daytime window. Tariff 2 covers weekday evenings along with weekend daytime and evening travel. Tariff 3 covers the overnight hours every night of the week, plus public holidays, and carries the highest rate of the three. Each band reflects the cost of running a vehicle at less sociable hours rather than any judgement about how badly you need the ride. Crucially, the band is set by the clock and the calendar — not by how many other people happen to want a taxi at the same moment. Because TfL reviews the actual pence-per-mile figures periodically, check the current rates on the TfL website rather than trusting a number quoted in any article, including this one.
Extras, surcharges and the things people forget
A handful of additions sit outside the basic rate. Pickups from Heathrow carry an extra charge, bookings placed through a taxi despatch service can attract a booking fee, and card payments may carry a regulated service charge. There is no charge for luggage or for extra passengers within the vehicle’s licensed capacity, which is one of the quieter advantages of a taxi over any vehicle that prices by head.
Why a fixed fare behaves differently
A metered fare is honest but unknowable in advance, because neither you nor the driver controls the traffic. A pre-agreed fixed fare moves that risk off your side of the table: the quote is the quote whether the road is empty or gridlocked, and it does not change band at ten at night. For spontaneous travel the meter’s flexibility is a feature, as our three-way comparison of cab, app and pre-book sets out. For a journey with a departure time attached, most people would rather know the number in advance and stop thinking about it.
The three tariff bands at a glance
| Band | When it applies | Relative rate |
|---|---|---|
| Tariff 1 | Weekday daytime | Standard |
| Tariff 2 | Weekday evenings, weekend daytime and evening | Above Tariff 1 |
| Tariff 3 | Overnight every night, plus public holidays | Highest band |
| Any band | Stationary in heavy traffic | Time charge keeps accruing |
| Any band | Heathrow pickup | Extra charge applies |
| Any band | Card payment | Regulated service charge may apply |
Questions readers ask
How do London taxi tariffs work?
What is Tariff 3 on a London taxi?
Can a black cab driver charge whatever they want?
Prefer certainty over roulette?
If you would rather know the number than watch it climb, a fixed quote takes a minute and then holds, whatever the traffic and whatever the hour.