There are also buses there from Mexico City from the South Bus Station (Autobuses Central del Sur). A one-way ticket costs $195 pesos and they usually leave every few hours. $250 for the luxury bus which is once or twice a day. The ride is about 3 hours, twisty and sometimes stomach churning so take the luxury bus if possible. 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".
Beware of the "tourist information" at the bus station who are just guys working for one of the local silver smiths who will offer to take you for a free combi-bus ride to their store and insist that they are the cheapest, the most authentic, etc. plus a tour of their "silver mine" which is really a fabricated cavern made to look like a silver mine. Prices are OK but not that great.
Suggestion : Don't buy anything until you have compared with stores downtown.
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 cable car (teleferico) than can take you up to a fancy hotel called Monte Taxco, with great views and a decent bar/restaurant. It is about $90 MXP for adults roundtrip and $60 MXP for children. The view is nice but not as good as the one in Orizaba, Ver. There is not much else to see/do up there.
For ~ MX$50 you can take a colectivo to some freshwater blue holes (Las Pozas de Atzala) half an hour away. The colectivos leave from right next to the Coppel building which is a short walk from the Estrella Oro bus terminal. The colectivo to Las Pozas has a picture of the blue holes on its side and Atzala written on its front so it is hard to miss, however, a lot of different colectivos leave from the stop so it is worth asking someone when you are there. They leave every hour.
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. A little after the OXXO you will see this alley that goes to these underground stores. These stores have most of their wares already in little packages ready for resellers to sell when they take it back. Another thing to take into account is to look for the sellers that sell their silver by the gram rather than just offering 30% discounts. Watch what price they use to calculate the total when they use the calculator. It's a lot easier to compare prices by price per gram. These guys in the alley sell their silver for 15 - 20 pesos per gram. Probably less if you buy in large amounts.
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.