The big striker netted within six minutes of coming on, planting a powerful downward header beyond John Achterberg in the 70th minute.
It had threatened to be another frustrating afternoon for Gary Megson's men as Brian Little's Tranmere defended resolutely.
But Taylor's introduction helped them to extend their unbeaten run in League One to five matches.
Forest had Russell Hoult to thank for keeping the score at 0-0 at half time as he made a fine save to deny Gareth Roberts from 10 yards when the midfielder should have scored.
But the home side were again left kicking themselves for missed opportunities with Megson's team again dominating for long periods but failing to find the cutting edge.
Their best opportunity had fallen to Jack Lester who had ghosted on to the end of Nicky Southall's incisive pass and darted into the box only to fire straight at Achterberg.
Little's side did not take the same ultra-defensive approach that Blackpool had at the City Ground in midweek when they battled their way to a 1-1 draw but Forest were again lacking a little creative flair.
A half-time talking to from Megson seemed to do the trick, however, as Forest emerged with fresh urgency.
A trio of three corners in quick succession mounted the pressure on the Tranmere goal and only a goalline clearance from Carl Tremarco prevented Forest from going ahead after David Friio had connected with Southall's flag kick.
Chris Greenacre prodded wide a half chance at the other end but it was Forest boss Megson who tried to add a cutting edge to his side as he brought on two strikers in the form of Taylor and Spencer Weir-Daley in place of Lester and David Johnson.
And the moved paid off in fine fashion as, within six minutes of coming on, Taylor headed Forest ahead as he beat Achterberg at his near post with a firm downward header.
Weir-Daley also came close to finding the back of the net late in the game but saw his header fly narrowly over.