A New York City taxi medallion is the metal badge on a yellow cab’s hood that shows the vehicle is licensed to pick up street hails. The system began with the Haas Act of 1937, which capped the number of taxi licenses during the Depression. Because the number of medallions stayed nearly fixed for decades while the city grew, they became extremely valuable — some sold for more than $1 million in the early 2010s. The rise of app-based ride-hail caused values to collapse, leading to a debt crisis among owner-drivers and later relief programs.

At a glance
Created Haas Act, 1937
Purpose Limit the number of licensed taxis
Number today About 13,500 medallions
Peak value Above $1 million (early 2010s)
Crisis Values collapsed in the late 2010s

Why the Haas Act was passed

During the Great Depression, many unemployed people turned to driving cabs, flooding the streets and driving fares and earnings down. The Haas Act limited the number of licenses. Some licenses were not renewed, and the number settled at a level that stayed nearly unchanged for decades.

A valuable asset

Because medallions were scarce and taxis had an exclusive right to street hails, medallions were bought and sold, often with loans. Their price rose steadily, peaking in the early 2010s.

The collapse

App-based services allowed passengers to summon for-hire vehicles without street hails, cutting into taxi business. Medallion values fell sharply, leaving many owner-drivers with loans larger than the value of their medallions. Investigations and hardship led to debt-relief programs in the early 2020s.

Medallions today

Yellow cabs still have the exclusive right to street hails in Manhattan’s core and at airport taxi stands, while pre-arranged service is provided by for-hire vehicles, including black cars. Read the history of the yellow cab and the NYC TLC.