Growing up in a cultured environment, Taunay studied Literature and Humanities at the Colégio Pedro II, graduating in 1858.
An Ensign in 1862, bachelor in Mathematics in 1863 and an Artillery Lieutenant in 1864, he was matriculated in the second year of military engineering course, but he did not finish it because of the Paraguayan War.
Taunay wrote and published his first romance, Mocidade de Trajano (Trajan's Youth), in 1871, under the pen name Sílvio Dinarte.
Appointed by the future Viscount of Rio Branco José Maria da Silva Paranhos Sr., he became the general deputy of Goiás from 1872 to 1875, a Major in 1875 and the governor of Santa Catarina from 1876 to 1877.
One of Taunay's most famous deeds as governor of Paraná was the inauguration of the Passeio Público in the capital Curitiba, in 1886.