Manchester United confirmed via their website on Wednesday morning that manager Ferguson is to retire at the end of the season.
Taylor told Press Association Sport: "The game of football will be a lot poorer place without him. He has been quite simply the best. He followed in Sir Matt Busby's footsteps and even surpassed him.
"He will also be the toughest act to follow."
Taylor has been PFA chief throughout Ferguson's time at United and he admitted they had clashed on occasion - but that it was soon forgotten.
He added: "I will miss him - he has been a very good friend of the PFA throughout his career.
"Of course at times it has not always been smooth and we have had a difference of opinion but we always respected each other and we have had a lot more agreements than disagreements.
"He is a great football man, he has turned out team after team and in terms of youth development he has been one of the finest exponents of that. He has had a faith and a belief in his youngsters that is rare in today's football."
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