Rates established by the City of San Jose are considered the de facto rate for the Silicon Valley with the only significant difference being an additional $5.00 per hour "waiting time" charge in Palo Alto and Sunnyvale.
The City of San Jose regulates taxi fares at $3.00 per mile (in 1/10th mile increments) with a $3.50 "flag drop" charged when the meter is hired. Trips that originate out of the Norman Y Mineta San Jose International Airport (SJC) have an additional $1.50 surcharge on the flag drop. "Waiting Time" is charged in $0.30 increments for a total of $30.00 per hour.
Effective October 2008 the City of San Jose authorized a $15.00 minimum charge out of SJC. This $15 minimum purportedly includes the following:
1) the San Jose City Council approved $3.50 "flag drop"
2) the San Jose City Council approved $1.50 fee for trips originating at SJC
3) the first 3 miles traveled
4) Applicable waiting time
If your taximeter starts at $5.00 and the driver also tries to charge you an additional $1.50 please note the driver's permit number or vehicle number report the incident to the San Jose Police Department Permits Unit at (408) 277-4452.