Taylor, 26, was a backup in Baltimore for four seasons before joining Buffalo in 2015 and winning the starting job during training camp. He threw for 3,035 yards and 20 touchdowns in 14 regular-season appearances, and also averaged 40.6 rushing yards per game.
“I see the confidence that his teammates have in him and we think we’re going to get it done with Tyrod at quarterback,” head coach Rex Ryan said via the team’s website. “He can beat you with his arm, with his deep ball, his accuracy, and he can beat you with his legs, so I think those are some great things. We think that we’ve got a really good one there. We’ve got a fine, outstanding quarterback.”