There are taxis in Phuentsholing, Paro, Jakar and Thimphu. Taxis may have meters, but drivers rarely use them. For long-distance trips they operate on a flat rate that is rarely open to negotiation. Taxi drivers have a habit of charging foreigners, including Indians, as much as they can – one of Bhutan's few rip-offs.
You should expect to pay Nu 70 for a local trip within Thimphu, Nu 1000 to Nu 1500 for a full day. If you are travelling between Thimphu and Phuentsholing, look for a taxi that is from the place to which you want to go (vehicles with BT-2 number plates are from Phuentsholing and those with BT-1 number plates are from Thimphu or Paro) – you may be able to negotiate a lower price.