Taken 44th overall in the 2021 draft, the 20-year-old had an impressive first season, playing an important role in Adelaide's SANFL season, including its two finals.
Throughout his 17 SANFL appearances last season, Taylor slotted eight goals for the tri-colours' reserves side, averaging 17.4 disposals, 4.9 tackles and 4.5 clearances at state level.
Speaking to the club's website, Adelaide General Manager of List Management and Strategy Justin Reid says Taylor's re-signing is the reward for the hard work he has put in since making his way to the Festival State.
"Zac has shown he can win his own footy and is very smart with ball in hand."
"He came into the AFL system very talented but quite raw so deserves a lot of credit for working hard to put himself in a position where he played some quality, consistent football at SANFL level last year.
"This pre-season has been about building on that and taking some momentum into 2023."
Taylor says it was a straightforward decision to ink a new deal, claiming the culture built under Matthew Nicks meant Adelaide was the "right spot for me".
"The boys welcomed me in right from the start, we have a good culture at the Club and it's the right spot for me and my development for the next two years."
"It has been a solid pre-season and I'm really excited about games starting and going into Round One with some confidence and belief in my own game and what we can do as a team."
Adelaide is scheduled to begin its 2023 season when they travel to face GWS in the Harbour City on Sunday.
It is yet to be seen when and where Taylor will be selected to make his AFL debut.