Taylor graduated from the U.S. Naval Academy in Annapolis, Md., and studied advanced naval construction and marine engineering at the Royal Naval College, Greenwich, Eng., earning the highest grades achieved until then at both institutions. Taking charge of the Experimental Model Basin in 1899, Taylor undertook experiments to discover what characteristics of a ship's hull govern its water resistance. By a method internationally known since 1910 as the Taylor Standard Series Method, he determined the actual effect of changing those characteristics, making it possible to estimate in advance the resistance of a ship of given proportions. His Speed and Power of Ships (1910), setting forth this knowledge, is still informative.

In 1917 Taylor became a rear admiral and from 1914 to 1922 was responsible for the design and construction of ships, submarines, and aircraft for the U.S. Navy, including the NC-4, first plane to fly the Atlantic (1919). He made many other contributions to aeronautics in 15 years of service on the National Advisory Committee for Aeronautics.