The 25-year-old, who made his debut for the county in 2010, also plays as a right-handed, middle-order batsman.
"We have a great squad and coaching staff and I feel that there is more silverware to come," Taylor told Gloucestershire's club website.
He has taken 61 wickets in 42 first-class matches so far in his career.
Chief executive Will Brown added: "It is fantastic to see yet another of our young stars commit to Gloucestershire.
"Jack's drive to constantly improve, shown by his hugely improved batting performances, will no doubt keep him as a key member of the squad well into the future."
Gloucestershire off-spinner Jack Taylor has signed an extended contract with the County Championship Division Two side until the end of the 2019 season.