Taylor will receive the team's offer of $3.25 million rather than his request of $3.5 million. Arbitrators Mark Burstein, James Darby and Matt Goldberg issued their decision Friday, a day after hearing arguments.
Taylor hit .227 with 6 homers and 28 RBIs last year, down from a .271 average with 19 homers and 53 RBIs in 2017. He had a $2.5 million salary last year.
Houston shortstop Carlos Correa also had a hearing Thursday and asked for a raise from $1 million to $5 million. The Astros argued for $4.25 million during the session before arbitrators Elizabeth Neumeier, James Oldham and Gary Kendellen, who are expected to decide Tuesday.
Correa hit .239 with 15 homers and 65 RBIs last season, slowed by a bad back. He batted .315 with 24 homers and 84 RBIs in 2017, helping the Astros win their first World Series title.
Oakland Athletics closer Blake Treinen's case was heard Friday. He asked arbitrators Steven Wolf, Allen Ponak and Phillip LaPorte for a raise from $2.2 million to $6.4 million and was offered $5.6 million.
Treinen was a first-time All-Star last year, going 9-2 with a 0.78 ERA and 38 saves in 43 chances over 68 relief appearances. The right-hander struck out 100 and walked 21 in 80 1/3 innings.
Colorado third baseman Nolan Arenado avoided a hearing when he agreed Thursday at $26 million, the largest one-year contract for an arbitration-eligible player. He topped third baseman Josh Donaldson's $23 million deal with Toronto last winter.
Players won 12 of 22 hearings last year, their second winning record in three years, but just their fourth since 1996. The 22 decisions were the most since players went 14-10 in 1990.