There are also buses there from Mexico City from the South Bus Station (Autobuses del Sur). A one-way ticket costs $130 pesos and they usually leave every half hour. The bus will take you through very scenic mountain views and drop you off in the middle of the town. Since it is a mountain town, you can either walk uphill to the Zocolo (square) where many shops and the famous church are, take a taxi, or any bus that says "Zocalo".
The last bus out of Taxco back to Mexico City is 8 p.m.
Walking is the best way to get around Taxco.
Taxis (Volkswagens) are relatively inexpensive ($20-$30 pesos). Collectivos (combis) are also a good option to get around town -- most go through the Zocalo and a local can help you find the right one.
At the center of the city lies the Santa Prisca cathedral, built during the 1700s. There is a statue of Jesus at the very top of the town, called "Cristo." The view from up there is amazing.
There is a silver "museum" in a beautiful building called Casa Borda which also serves as a cultural centre. Located on the main plaza itself. In 2010, much of the building was being renovated, but there was a nice exhibit of silver jewelry.
Get a lot of exercise walking up the steep streets.
There is a gondola (teleferico) than can take you up to a fancy hotel called Monte Taxco, with great views and a decent bar/restaurant. There is not much else to see/do up there.
Silver! There is very beautiful silver, mostly all engraved with "MEXICO 925" or "TAXCO 925" The silver shops away from the centro are where you can bargain. You will be charmed and ecstatic at all the beautiful silver, but will get tired of looking at it in 4 hours or less. You will also be approached by men, women, and children selling you items in the centro (plaza centrál). If you are not interested in being bothered, do not give them any eye contact. Once one finds you are slightly interested, all the other vendors will come try to sell their goods.
Try the Pozole. It is a soup-like dish of large corn pieces called hominy, pork rind/fat, avocado, and some crispy tortilla crumbles. Try it at the top of the hill above the small covered market which sells silver. It's cheap, tasty, and filling. It's a great dish to try if you want to experience Mexican food. Thursdays are the traditional pozole days during which the red and green varieties are typically served. The white style is served the other days of the week.
The Restaurant of the Hotel Agua Escondido has free WiFi - ask for the WEP-Key.
The Balbas Cafe next to Hotel Loma Linda has been voted the best cafe in all of Taxco. They serve everything from sandwiches to crepes to full dinner meals, as well as alcohol if coffee doesn't do it for you. The terrace in the back overlooking the mountains and the city is beautiful. Prices are cheap, around $60 pesos at most for any item, many are in the $35-range.