The efficacy of urban teachers has been an important concern of school administrators. This study explores how teacher's intrinsic and extrinsic work motivation, relationships and school contexts affect teacher efficacy. The sources were surveys collected from elementary school teachers in Taipei City, Taiwan and data and demographic information collected from Education Statistical Data in Taipei City Government, Taiwan. The results of multilevel modeling indicated that school-level principal leadership and work environment enhance teaching. For teacher-level variables, only parent--teacher relationship has a significant influence on teacher efficacy. The implications and research limitations are discussed.