David Henry Thorley, 54, of Mansfield Road, Temple Normanton was caught by Chesterfield Borough Council’s enforcement officers on October 21 2015.
He had previously received a fixed penalty notice for smoking in the vehicle.
Thorley failed to appear at a hearing at Northern Derbyshire Magistrates Court on Wednesday (April 27) and was ordered to pay £320 in fines and costs within 14 days.
He also received six penalty points on his taxi driver’s licence for the offence.
Councillor Chris Ludlow, Chesterfield Borough Council’s cabinet member for health and wellbeing said: “All of our licensed taxi drivers should know that it is illegal for them to smoke in their vehicles.
“This is the second time that David Thorley had been caught smoking and this case shows that we take these breaches seriously.”
Any taxi passengers who see a driver smoking should report it by calling 01246 345345.