Only East Lothian charges more.
Ccouncillors on Fife Council’s regulation and licensing committee agreed to a recommendation from taxi operators to increase charges.
It means a two mile journey will now be £6.70 in a taxi between 6.00 am and 10.00 pm – and that goes up to £8.35 after 10.00pm
The average day rate across the UK is £5.92 for a two mile journey.
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Taxi firms and associations across Fife supported the increase.
The Glenrothes association said: “After not receiving a raise last year, we would therefore like a small raise this year. The target is to stay in line with inflation and increased costs.”
Councillor Mick Green proposed that the taxi fares should be increased after, “taxi operators met and worked out themselves the best move”.
Councillor Carol Lindsay, committee convener , said: “Every one of us knows what the economic climate is like – but equally, standards in Fife for maintaining taxis is high. It’s difficult to get the right balance.”
Councillor John Docherty added: “It’s a fair report and they all seemed to have come together and support it.”
All councillors agreed to support the rise.