Clint Jensen stands alone in second place at 5-under-par 67, while Connor Robbins, Cory Jones, Brad Sutterfield and Brad Fritsch are one stroke further back at minus-four.
Taylor was in the second group off the first tee in the morning group. He stumbled out of the gate with a bogey at the first, but came right back to birdie No. 2.
The 25-year-old picked up another birdie at the fourth and capped his opening nine with a birdie at the ninth, to make the turn at minus-two.
After a birdie at nine, Taylor ran off three consecutive birdies from the 10th to jump to 5-under. He birdied the 17th to grab the overnight lead.
Jensen, playing alongside Taylor, ran off three straight birdies from the second to quickly get to minus-three. After eight pars in a row, Jensen again reeled off three consecutive birdies to get to 6-under. However, he faltered to a bogey at the 16th to fall into second place.
Ron Won, Robert Hamilton, Philip Jonas, Masaharu Kawaguchi, Billy Noon, Bryan Conway, Chris Wall, Adam Short and Scott Ford share seventh place at 3-under-par 69.
Mario Tiziani, the 2003 Northern Ontario Open winner, and Craig Kanada lead a group of 20 players tied one stroke further back at minus-two.