With both sides currently scrapping it out in the relegation zone, Taylor says no-one is unaware of how momentous the game is in the Owls camp.
He told the club's official website: "Of course this is a big game, it's a local derby.
"We always take each game as it comes and prepare in the right manner but there is no hiding away from how big this game is.
"We're motivated for every match but derbies always have that little bit extra about them. We are all looking forward to the game and the pressures that come with it."
Wednesday suffered a seventh straight defeat at the hands of Bristol City last weekend but Taylor is under no illusions as to what is required for the Oakwell clash.
He added: "Things can change very quickly in this division.
"It's not nice to be down there but once the questions have been asked and put to bed, we start to focus on the next match.
"The lads will be up for it and we're under no illusions of how important the match is. We're quite a resilient bunch.
"We've got four matches between now and the end of the year, which we feel are all winnable games, starting with Barnsley on Saturday."