The 25-year-old Coventry-born attacking midfielder was named player of the season by Lambs` supporters at the end of last season, which ended in relegation.
Taylor leaves Tamworth after five years, having joined initially on loan before signing permanently after spells with Walsall and Nuneaton Town, making over 150 appearances.
He began his career at Aston Villa before spending a season at the Bescot Stadium, making a single appearance for their first-team during the 2012/13 season, when he spent his first spell on loan at The Lamb.