[5][6] In 1876, the Texas Land Company auctioned lots in anticipation of the arrival of the International-Great Northern Railroad when Taylor was founded that year.

Immigrants from Moravia and Bohemia (now the Czech Republic) and other Slavic states, as well as from Germany and Austria, helped establish the town.

In 1882, the Taylor, Bastrop and Houston Railway (later part of the Missouri-Kansas-Texas Railroad) reached the community, and machine shops and a roundhouse served both rail lines.

A water line from the San Gabriel River, a 100-man volunteer fire department, imported and local entertainment, and an annual fair made noteworthy news items by 1900.

On September 9 and 10, 1921, eighty-seven people in and around Taylor were killed in flooding of the San Gabriel River and Brushy Creek after 39.7 inches (1,010 mm) of rain fell in 36 hours on Williamson County.

[16] In 2011, the Taylor ISD opened a new high school, where all students get a Mac Book as part of their education.

Students also use a Wi-Fi network, two gyms, a second-floor library, and 58 classrooms, including a culinary arts academy, a modern welding lab, and a band hall.

[17] Taylor's largest employers include the Electric Reliability Council of Texas,[19] Durcon Inc.,[20] Burrows Cabinets[21] and the T. Don Hutto Residential Center.

[24] In November, 2021 Samsung announced its intention to build a US$17 billion semiconductor plant near the city of Taylor.