Teroy Tate, aged 37, of Edenhall Road, was jailed for four-and-a-half years at Sheffield Crown Court on Monday.
Police said Tate was stopped while driving his taxi on Edenhall Road and, following a search, he was found to be in possession of an ounce of crack cocaine.
When officers searched his home address, they recovered a further ounce of crack cocaine and packages of heroin stored in a shoebox in Tate’s bedroom, worth a street value of £15,000.
Tate was charged with possession with intent to supply heroin and crack cocaine and possession of criminal property under the Proceeds of Crime Act.
He pleaded guilty to both charges on August 14.
Investigating Officer Det Con Steven Hemsley, said: “Tate was using legitimate employment as a taxi driver as a smokescreen for his criminal activity and this should be a warning to others who might be doing the same.
“To all of those involved in drug-dealing in our city, we are working hard to disrupt your activity and prevent you from exploiting vulnerable people.
“I am satisfied with the sentence that Tate has received today and I would hope that it’ll serve as reassurance to the public, that we are taking significant action against drug dealers operating across Sheffield.”