Abandi Jamal Kassim was ordered to pay a total of 590 pounds after he was sentenced at Leicester Magistrates Court.
Kassim appeared before the city's magistrates and admitted a breach of the Equality Act 2010.
The incident took place on July 1 last year, when he refused to take the guide dog in his taxi.
John Moss, prosecuting, said the law was clear in the conditions of the taxi drivers permit, which was issued by Leicester City Council.
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"That is an offence under the Equality Act because taxi drivers and private hire drivers cannot refuse to take a fare from somebody on the basis that they have an assistance dog with them," he added.
The Muslim taxi driver said that he was not aware of the law and apologised to Charles Bloch, 22, and his partner Jessica Graham who were denied a taxi ride.
"The duty is on you to read the conditions. You have been a taxi driver for some time," Magistrate Rasheed Cader told Abandi.
"I find it difficult to accept that you didn't know what the permit conditions were when you applied and were accepted as a taxi driver," he further added.
The driver was fined 340 pounds and was ordered to pay 50 pounds compensation along with the council's 200 pound court costs.