Bradford City say he's left by mutual consent.
Taylor has been released from his playing contract at Valley Parade for personal - non football related - reasons.
In a statement, the club has asked that his privacy is respected.
City’s Head of Recruitment Greg Abbott told the club's official website: “Paul the footballer is such a talented individual, and it is just very unfortunate for himself and the club that things have worked out this way.
“He is a great lad, and the whole group are very disappointed for him, but you are not immune from personal issues just because you are a footballer.
“They can affect everyone.
“Our main thoughts are certainly with Paul at this time and we hope, with our support, he can work his way through these personal issues.”
Chief Operating Officer James Mason added, "We treat the welfare of all our playing and non-playing staff very seriously.
"This has been a difficult few weeks for all concerned and would like to extend our thanks to Paul for all his efforts at the club.
“He scored some very memorable goals and quickly became a fans' favourite with his energetic and often skilful performances.
"Many times he appeared in the banqueting suites after games picking up his 'Man of the Match' awards.
“Whilst he wasn't overly keen on speaking he never shirked his responsibilities posing for photos with fans sometimes even after defeat.
“I would ask all City fans to support him as we will as a club and we hope to see him back playing again soon."