Catalyzes the formation of isethionate from 2-sulfoacetaldehyde in the deaminative pathway of taurine. The enzyme is specific for NADPH; NADH is not a substrate. Responsible for most of the activity observed in taurine-grown cells. 2-hydroxyethane-1-sulfonate + NADP(+) = H(+) + NADPH + sulfoacetaldehyde Optimum pH is 6.5-9.5. Organosulfur degradation. Homodimer and heterotetramer. By taurine. Belongs to the short-chain dehydrogenases/reductases (SDR) family.