The 32-year-old moves to Whaddon Road after spending just a year with the Bantams, for whom he made only two senior appearances.
Taylor began his career as a goalkeeper at Preston but was converted to centre-back after impressing Team Bath manager Ged Roddy whilst playing for Sheffield Hallam University.
He went on to represent England Universities in 2006 before linking up with Exeter and then Charlton.
The announcement of Taylor's signature shortly followed the capture of Birmingham winger Koby Arthur on a six-month youth loan deal earlier on Friday afternoon
"There is a good set of lads down here who are hungry to do well and there's no reason why we can't look forward to having a good season," Taylor told the club's official website.