Hales, who has played white-ball cricket for England, was brought into the Test squad after Adam Lyth was dropped.
Despite impressing for county champions Yorkshire and scoring a hundred in his second Test against New Zealand at his Headingley home ground, Lyth averaged just 12.77 after playing in all five matches of England's 3-2 Ashes series win.
Now Hales, who struggled for runs during England's recent 3-2 one-day series loss at home to world champions Australia, will compete with Moeen Ali to fill the vacant spot alongside Test captain Alastair Cook at the top of the order.
Taylor's inclusion meant there was no place in the Test squad for Gary Ballance, dropped two games into the Ashes.
Also Read
Pace-bowling all-rounder Ben Stokes has been included in the Test squad but rested from both the one-day and Twenty20 parties after an ever-present campaign in all three international formats during the English season.
England's backroom staff, headed up by Australian coach Trevor Bayliss, has two recruits in former one-day skipper Paul Collingwood and recently retired Sri Lanka batting great Mahela Jayawardene, with both men taking consultancy roles.
- Challenge -
=============
Collingwood remains the only England captain to have lifted a major international limited overs trophy after leading the side to glory at the 2010 World Twenty20 in the Caribbean.