Author Joy Cowley says future generations who never met him will be glad to know him through his novels.
"We will miss his humour, his unfailing kindness, his courage, the books that could have been, but we are so grateful for the writings we have."
Storylines Children's Literature Trust chairwoman Dr Libby Limbrick said: "From his warmly humorous books for younger readers, to his thought-provoking novels for adolescents, Bill's contribution to literature for young people has been immense."
New Zealand Society of Authors president Kyle Mewburn says Taylor was an icon of New Zealand literature.
"His advocacy for, and support of, all writers has left a lasting legacy."
New Zealand Book Council board member Gavin Bishop said Taylor's "often challenging and beautifully crafted writing established a high benchmark" for younger writers.
He was a mentor to author Janice Marriott.
"I'll miss his wisdom," she said.
"We both loved to put humour into children's books, and we shared many laughs about our work and our lives.
Taylor's accolades include:
• Officer of the New Zealand Order of Merit for services to children's literature and the community
• Italy's prestigious Premio Andersen Award
• The Storylines Margaret Mahy Medal for lifetime achievement
• The Esther Glen Award for Agnes the Sheep.
- AAP
