She previously served as British Columbia's Minister of Finance from 2005 until 2008 in the government of BC Liberal premier Gordon Campbell.

She was chair of the Canadian Broadcasting Corporation from July 16, 2001, until March 14, 2005, when she resigned to seek the nomination of the British Columbia Liberal Party in that province's 2005 election.

In one of her last acts as Finance Minister, Carole Taylor ended the corporate capital tax on banks—$100 million a year in government revenue.

Upon leaving government, Taylor joined the TD Bank board where she stood to earn $145,000 to $300,000 per year.

[2] On December 18, 2008, she announced her resignation from the Legislative Assembly after accepting an appointment to a federal Ministry of Finance advisory panel.