The 32-year-old joins John Eustace’s squad as a free agent and brings a wealth of experience, including 169 Premier League appearances and 423 senior games across his career.
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Taylor developed his reputation during his time with Leeds United before joining Burnley in 2017, where he spent seven seasons and played a key role in their top-flight campaigns.
He also helped the Clarets secure promotion to the Premier League.
The defender later featured for Southampton and spent last season on loan at West Bromwich Albion, making 28 appearances in the Championship.
Taylor will now link up with Derby for pre-season preparations ahead of the new campaign.