Hector and Taylor both broke into the first-team squad last season, and Nigel Adkins has reacted to make sure that the duo's futures are certain ahead of another push for promotion in the next campaign.
"It was a simple decision to stay here," 21-year-old defender Hector told the club's official website.
"It's only been a good experience so far and hopefully I'll have many more to come at this club. I can't wait for next season to start now."
Reading finished seventh in the Championship, one point outside the playoff places.