The 22-year-old joins in time to be in contention for Saturday's trip to take on Tranmere Rovers, and trained with his new team-mates on Thursday morning.
Taylor is highly-rated at the City Ground and enjoyed a loan spell in League Two with Port Vale last term, battling for a place in the play-offs.
He notched five goals in 18 games in the league, while he also netted twice in seven further cup appearances for the Valiants.
One of those league goals came against the Iron at the Sands Venue Stadium, when Vale were beaten 2-1.
The move is subject to EFL ratification.
