Taylor scored his first goal of the 2011–12 season on 28 August, in a 2–2 draw against former club Birmingham City. A dislocated collarbone suffered in October after a collision during Watford's home game against Crystal Palace kept him out for three months, and his return was further delayed when he broke his toe in a friendly in January 2012. He finally returned to league action at West Ham United in early March, as substitute for the concussed Dale Bennett, and was made captain for his first start since the injury, away to Bristol City two weeks later. At the end of the season, Taylor signed a new one-year contract with Watford.