Kane Williamsons side have won all three of their matches to top the table ahead of their match against India in Nottingham on Thursday.
But Taylor said the round-robin format gives enough time for sides to get into their rhythm towards the business end of the tournament.
"I think its still early on. The majority, all nine (other) teams are still, or maybe realistically seven teams still in the hunt," Taylor said.
"I think its not only the way the draw works out, you know, if you can get into a bit of a roll towards the end - first and foremost, youve got to get into the semi-final."
Taylor said India would miss the injured Shikhar Dhawan and the chance to open with a left-right batting combination, with Rohit Sharma.
The Kiwis on the other hand have a right-left pair of Martin Guptill and Colin Munro, which Taylor said was useful on English grounds with shorter boundaries on one side of the wicket.
"I havent been in the bowling meetings, but obviously Shikhar is a big loss to India. The presence, he plays very well at ICC (International Cricket Council) tournaments and has a very good record over here," said Taylor.
"Himself and Rohit Sharma have a very good partnership, and I think they complement each other well because theyre right and left-handed.
"In terms of our line-up, I think weve had a similar balanced side for a long time, and when you do have a right-left hand combination, it does put pressure in different ways on the bowling opposition."
New Zealand outplayed India, who are among the favourites alongside champions Australia and hosts England, in a pre-tournament warm-up game last month.
Taylor said that his teams recent success against the Virat Kohli-led side, including their ability to deal with Indian spinners in Kuldeep Yadav and Yuzvendra Chahal, would give them confidence.
"Weve faced India a lot in recent times and had some success against them," said Taylor, who hit a match-winning 82 against Bangladesh.
"Obviously, two world-class spinners on their day. I think weve had success at different stages. Well have to wait and see what the wicket produces tomorrow," he added.