The Us have enjoyed the best home form in the division during this campaign, but well-taken goals from James Scowcroft and Ben Watson ensured it was Palace who left with the points.
"It was a good performance and decent way to end the season," said Taylor.
"Colchester have had a great season and today's win shows what a decent squad we have and maybe we haven't finished as high as we should have done."
The victory rounded off a decent second half of Palace's Championship campaign and ensured a top-half finish. While Taylor admits early season form was simply not good enough, he's hopeful the post-Christmas showing can push the team forward for next year.
"We have done better in the second half of the season and in the last couple of games we have done well," he added.
"There have been a number of games this season where we've found ourselves one down because we've conceded a poor goal and I just think we've tightened up a little bit and as long as the game is 0-0, the more we are confident that we can get a goal.
"In the last couple of games the players have done well in the system and whilst we were good at Selhurst Park last week, the pitch here was excellent and that gave the players confidence to go out and pass the ball around."