Byron Moore netted just 60 seconds after City's Shane Duff had cancelled out Clayton Donaldson's opener to ensure the Bantams suffered their fourth defeat on the spin.
Speaking after the match, Taylor said: "We have to be realistic and honest - we aren't looking play-off contenders at the moment.
"We are in a poor run of form and we have to start taking our chances and stop giving silly goals away.
"The work-rate of the team is first-class at the moment, but the cleverness isn't. We gave ourselves a chance and then concede a really poor one.
"We have an honest bunch and they will work very hard to turn it around."