Taylor's unbeaten 217 helped the Black Caps declare on 9-609 after tea on the second day at the University Oval and make the tourists rue winning the toss and asking the home side to bat.
Pacemen Trent Boult and Tim Southee grabbed a wicket each to leave the West Indies on 2-67 at the close of play with Darren Bravo 37 not out and Marlon Samuels on 14.
The hosts resumed the day on 3-367 and when they called time on their innings they had reached their fourth-highest total in Tests.
Taylor, whose previous Test-best was 154, anchored the innings, batting for 11 minutes over eight hours, discarding his favoured slog-sweep with none of his 23 boundaries coming through the mid-wicket region.
He reached the milestone with a flick to the legside just before the tea break and celebrated by removing his helmet and saluting the home dressing room and the crowd basking in the sun.
It came from 295 balls and included 23 fours.
He became the 13th New Zealander to score a double century, the 17th overall, and when the declaration came after some late lusty blows from Neil Wagner (37) he was unbeaten on 217 - the 12th-highest score by a Kiwi.
Starting the day on 103, the former skipper was circumspect early on and enjoyed a life on 131 when he was dropped at short leg off off-spinner Shane Shillingford.
Taylor lost Brendon McCullum early, his captain adding just four runs to his overnight score of 109 to end their fourth-wicket stand of 195 - a new record against the West Indies.
BJ Watling (41), Ish Sodhi (35) and Wagner added half-century stands with Taylor as the home side pushed their total beyond 600 after tea to further frustrate the visitors.
Boult struck with the 13th ball of their innings, catching Kirk Edwards' edge for Peter Fulton to take a comfortable catch at second slip.
Southee had Kieran Powell caught behind to leave the tourists rocking on 2-24 before Bravo and Samuels steadied the ship.
Earlier West Indies captain Darren Sammy limped out of the attack with an injured right gluteal muscle and did not bowl again.
The energetic Tino Best was again the most threatening bowler and finished with figures of 3-148 as three bowlers conceded more than three figures.
THE 17 DOUBLE CENTURIES BY NZ BATSMEN
299 Martin Crowe v Sri Lanka, Wellington 1991
274* Stephen Fleming v Sri Lanka, Colombo 2003
267* Bryan Young v Sri Lanka, Dunedin 1997
262 Fleming v South Africa, Cape Town 2006
259 Glenn Turner v West Indies, Georgetown 1972
239 Graham Dowling v India, Christchurch 1968
230* Bert Sutcliffe v India, Delhi 1955
225 Brendon McCullum v India, Hyderabad 2010
224 Lou Vincent v Sri Lanka, Wellington 2005
223* Turner v West Indies, Kingston 1972
222 Nathan Astle v England, Christchurch 2002
217* Ross Taylor v West Indies, Dunedin 2013
214 Mathew Sinclair v West Indies, Wellington 1999
206 Martin Donnelly v England, Lord's 1949
204* Sinclair v Pakistan, Christchurch 2001
202 Fleming v Bangladesh, Chittagong 2004
201 Jesse Ryder v India, Napier 2009