A security deposit on a taxi lease is money you give the owner or fleet at the start of a lease. The owner holds it in case you leave unpaid lease charges, damage or certain tickets. TLC Rule 58-21(e) limits how big it can be and what it can be used for. The money stays yours: it must earn interest for you and be returned within 30 days after the lease ends (Chapter 58, updated February 27, 2026).
The rules in five steps
The money angle
- Example from the rule. The rule's own examples: a shift lease at $80 can require up to an $80 deposit. A six-month lease at $2,000 a month can require only up to $500, which is one week's lease in that example (58-21(e)(4)).
- DOV leases. The up-to-$5,000 deposit must be credited against your weekly payments pro rata. The owner may keep back the amount allowed for a medallion-only lease until the lease ends. If the owner cancels, any uncredited part comes back within 30 days (58-21(e)(4)(iv)).
- Fines for owners. Not returning a deposit on time: $50, and the hearing officer must order the unreturned amount repaid. Charging too large a deposit: $200 plus restitution. Using it for the owner's own summonses: $250, $350, then $500 and/or medallion suspension, plus restitution (58-21(e)(3)-(6)).
- TLC's Driver Pay for Drivers page notes that owners "must now pay drivers what they are owed when drivers are charged a security deposit in excess of the amount permitted."
Where drivers see it
In your written lease, on the deposit receipt, on the itemization when the lease ends, and among the permitted charges on the fleet Driver Bill of Rights poster. The deposit rules don't apply where a collective bargaining agreement covers security deposits (58-21(e)(8)).
Related terms
Lease cap, gas surcharge, credit card surcharge and DOV lease. Worked examples and damage claims: taxi security deposit rules. For-hire drivers who rent a car, for example to drive for a high-volume for-hire service, are covered by the FHV lease rule, 59A-21, instead. More pay topics are on the money hub.
Frequently asked questions
How big can a taxi lease deposit be?
No more than the price of one lease term, and no more than one week's lease if the lease is longer than a week (Rule 58-21(e)(4)). A DOV lease can have a refundable deposit of up to $5,000.
When must the fleet return my deposit?
No later than 30 days after the lease ends, by check or by cash in exchange for your written receipt (Rule 58-21(e)(6)).
Do I get interest on my deposit?
Yes. It must be kept in an interest-bearing account in a New York City bank or credit union, separate from the owner's money. The interest is yours, except the owner may keep one percentage point for bookkeeping (Rule 58-21(e)(7)).
Can the fleet use my deposit to pay its own summonses?
No. Only unpaid lease charges, damage if the lease clearly says you are responsible, parking tickets and red-light camera tickets from your lease, and MTA tax still owed can come out (Rule 58-21(e)(2)-(3)).
Sources
Last reviewed against the official sources on .
- TLC Rule Book, Chapter 58 (§58-21(e)), updated Feb 27, 2026 nyc.gov
- TLC: Driver Pay for Drivers (FAQ) nyc.gov
- TLC: Daily & Weekly Taxicab Driver Bill of Rights (poster) nyc.gov
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TLC Help is not a law firm and is not affiliated with the NYC Taxi & Limousine Commission or OATH. Explanations on this site are general information, not legal advice. Legal representation is provided by independent attorneys and OATH-registered representatives in our network.