The yongster has been a regular for Villa's U21s since re-joining the club in the summer of 2024, scoring twice in Premier League 2 last season.
Taylor previously spent five years in the academy at Manchester City, having started his journey in the youth system at Bodymoor Heath.
Taylor told Oldham's website: “I’m really excited to be here. This is a big club and this feels like the perfect next step in my development.
"I want to play games, work hard, and make an impact as quickly as I can. I like to play with energy, I'm a box-to-box type of player, but I feel I can help the team in different ways.
"I’m looking forward to getting started and pulling on the shirt.”
Manager Micky Mellon is pleased to add Taylor to his squad: “Kane is an exciting, energetic player who gives us real versatility.
“He’s been developed at top academies and has good experience for his age. He can play in a number of positions, he’s comfortable on the ball, and he’s hungry to take the next step.
“We want competition and energy in the group, and Kane brings exactly that. He’s here to work hard and help the team, and I’m delighted to have him with us.”