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Saba is mostly very steep, but assuming you are fit enough, you can just about walk around the entire island in one day, so most of the time you may be able to do without a taxi. Assuming you arrive by air, certainly use a taxi between airport and hotel and back again to the airport.
AS for day to day travel, the locals hitch rides when they are going across the island, so the first car that has room will usually allow you to hop in the back. Hitch to and from the coast when you get tired. Walking around Saba stretches the calves--lots of hills. Don't miss the SandyTrail, which takes you through the rain forest.