The Canadian carded a 1-under-par 69 to sit on 9-under 131 at the PGA Tour's season-opening event in Honolulu, where he was joined by first-round co-leader Kevin Roy (69), Davis Riley (64), Belgium's Adrien Dumont de Chassart (67) and South Korea's S.H. Kim (68).
Maverick McNealy (66), Chris Gotterup (69), England's John Parry (68) and Japan's Takumi Kanaya (66) are one shot back in a tie for sixth at 8 under.
Taylor mixed four birdies with three bogeys in his round as he looks to secure a PGA Tour victory for a fourth consecutive year.
"Today was difficult because conditions were much harder today, slightly different (wind) directions. It was really different golf course today compared to yesterday," said Taylor, who shot a 62 on Thursday compared to a 69 in his second round.
"So there is still some opportunities, but like a lot of par-3s you're happy with pars. I played them even today, which is pretty solid."
Aware of the depth on the leaderboard, Taylor admitted he faces stiff competition if he is to claim a seventh career tour title.
"I feel like at least here the first two days it's very bunched," Taylor said. "I don't know how many guys are within a couple shots of the lead, but probably almost double digits."
Other notable players included Russell Henley, who shot a 73 to fall to 2 under overall, while Collin Morikawa (68) and Keegan Bradley (72) missed the cut at even par.
Nick Taylor fired a superb bogey-free 8-under-par 62 on Thursday to sit tied for the first-round lead in the PGA Tour's season-opening Sony Open at Waialae Country Club in Honolulu.
South Korea's Byeong-Hun An is leaving the PGA Tour for pastures new at LIV Golf at the head of the newly formed Korea Golf Club.
Golf superstars Jon Rahm, Bryson DeChambeau and Cam Smith have snubbed the PGA Tour in favour of another season with LIV Golf.
Brooks Koepka is set to return to the PGA Tour later this month after the circuit introduced a pathway allowing the five-time major champion - and potentially others - to regain their membership.
