The 25-year-old's previous contract was only due to run until the summer, but the club have moved quickly to ensure he stays for longer.
Taylor has been something of a revelation since joining Saints from Saracens last summer, making 10 appearances and scoring twice so far.
He has caught the eye with a series of sparky showings and is now a real rival for the likes of Cobus Reinach and Alex Mitchell at No.9.
And Taylor can't wait to keep competing for starts at Saints in the years to come.
“I’ve loved every minute of my time with Saints so far and when the chance came to renew my contract it was a no-brainer for me,” Taylor said.
“I can’t say enough about Northampton; the town, the supporters and everyone at the club has made me feel so welcome and I’m relishing being a part of this club for the foreseeable future.
“Chris Boyd’s ambitions for this team are clear to see, we’re always striving to be better and the competition for the No.9 shirt will only help me improve further.”