The 31-year-old goalie has been first choice for most of his three years at Palace, but with his contract expiring in July Taylor has decided not to offer the Hungarian a new one.
"Gabor has been freed," Taylor said. "We've got two goalkeepers on the books now and they are under contract next year and with Gabor being out of contract, I decided to let him go.
"We thank him for his services because he's been excellent in the second half of the season so it was a difficult decision to let him go.
"Julian [Speroni] is looking good and finished the season well and I'm looking for Scott Flinders to come back and really push on."
Taylor also revealed that he will meet with the other out-of-contract players tomorrow to decide their futures.