The quarterback was entering the final year of his deal, but did have an option for next season. He was set to make just $2 million this season, but has proven himself enough to get a new deal.
The 27-year-old was placed in the starting role last season for the first time, going 8-6 and making the Pro Bowl. He threw for 3,035 yards and 20 touchdowns in those 14 games, and ranked second in the league in rushing yards and touchdowns by a quarterback. Only Cam Newton of the Panthers ranked higher in each category.
He has been in and out with injuries, including missing two games last season with a knee injury. The team claims Taylor has looked good throughout preseason camp, which is why they struck the deal before the team's first preseason contest.
Taylor joined the Bills as a free agent in March of 2015, after spending his first four years serving as Joe Flacco's backup in Baltimore. Since being signed, he has been in a three-way competition with E.J. Manuel and Matt Cassel for the starting job in Buffalo, a competition that he has now officially won.