If you're looking for the cheapest accommodation, the Taipei Hostel is the place for you. It's clean, friendly and extremely well situated in the centre of Taipei. A night in the dorm costs $10(300 NT) or for a private room $15 (500NT).If you're thinking of going around New Year's book early. Even though they don't mind people sleeping on the sofa, at busy times of the year, there won't even be any space there!
Hotels are much pricier and cost from about $30(1000NT) upwards. Of course for this extra money, you get a much better service.
Taipei has an excellent public transport system with a subway (called MRT locally), and buses which seem to go everywhere. A typical bus ride within the city costs about $0.50 (15NT), and for the subway (MRT) you’ll pay between $0.50 (15NT) and $1.50 (50NT) depending on the distance.
If you are planning on staying in Taipei for a while or are going to do a lot of travelling, it might be worth buying an Easycard. At 500NT (about $16) you get a 20% discount on most Taipei buses and the MRT as well as some trains too. It can also be used in convenience stores and some shops and taxis. You can buy one in any MRT station.
Special note about buses: For some unknown reason, some Taiwanese buses require that you pay when you get on the bus, and others require you to pay when you get off. Normally above the driver’s seat there’s a sign that tells you what to do.
Some buses will announce stops in English and some won’t. Generally if the bus looks modern it probably will. Unfortunately bus stops have no English on their signs.