The 27-year-old former Hull KR and Wigan front rower was already under contract until the end of the 2019 season but was happy to demonstrate his long-term commitment to his home-town club.
“As soon as the club opened talks about staying here, it was a no-brainer for me,” said Taylor, who has made 81 appearances since joining the Black and Whites for the start of the 2016 season.
“This is my team that I’ve grown up with. I’ve never been as happy in my career as I am now. I love playing for my home-town club and there is nowhere else I want to be.
“People talk about there being other options out there, but it doesn’t interest me.
“This is the place that is best for me. I know that I will play my best rugby here, and that’s the reason I have signed again. When you are happy, you play good rugby.
“I wanted to show how committed I was to the cause here by signing a long-term deal.”
Hull coach Lee Radford said: “He’s got the right sort of qualities that we’re looking to tap into and improve on.
“He’s been fantastic and he’s been really consistent since signing for the club.
“We’re really looking to seeing his consistency improve, especially on the international scene after his performance for England against New Zealand in Denver.”
Hull have also given long-serving forward Danny Washbrook a new contract for 2019 and extended prop Josh Bowden’s stay until the end of 2022.
Washbrook, 32, has made more than 200 appearances for the Black and Whites in two spells, having returned to his home-town club from a four-year spell at Wakefield in 2015.
Radford said: “He’s a great professional and he’s certainly shown his value through his time here at Hull FC.
“His adaptability in a number of positions is very important to us.”
Washbrook made his debut for Hull in 2005 and was in their back-to-back Challenge Cup-winning teams of 2016 and 2017.
Washbrook, who has also been awarded a testimonial for 2019, said: “I’m really pleased to get the deal done.”
Bowden, 26, who suffered a season-ending knee injury in May, already had two years left on his current deal but was delighted to sign a two-year extension.
“I’m really happy to get the deal over the line,” said Bowden, who has made 128 appearances since making his debut in 2012.
“To be sat on the sidelines after suffering a serious injury and have the contract signed is really reassuring to me.
“It’s a weight that’s been lifted off my shoulders because I can really concentrate now on recovery.”
Meanwhile, Hull have handed 18-year-old prop Jack Brown his first professional contract after impressing for the City of Hull Academy.