Defender Hector, 21, and 22-year-old midfielder Taylor both broke into the Royals' first team last season as they narrowly missed out on a place in the play-offs.
"It was a simple decision to stay here," Hector told the club's official website.
"It's only been a good experience so far and hopefully I'll have many more to come at this club. I can't wait for next season to start now."
Taylor, who joined the club as an eight-year-old, added: "It's a good feeling to agree a new deal.
"I've been here for a long time and now, to extend it for at least another couple of years, is great."