Taylor, signed to a two-year contract last October, started nine of his 67 games last season. He averaged 6.6 points and 3.1 assists in 17.4 minutes.
Taylor appeared to be in the Hawks' rebuilding plans. He sat alongside teammates Kent Bazemore, DeAndre' Bembry and Mike Muscala at a news conference last month to announce the hiring of new coach Lloyd Pierce.
But the Hawks decided Taylor was too expensive to keep. He was due $300,000 of his $1.5 million salary if still on the roster after Saturday.