Originally from Launceston, Tasmania, Taylor attended Riverside High School and was Deputy Head Prefect in 2000. She modeled locally for agency 'Skye-Jilly International' and competed successfully in State finals of Miss Teen Tasmania and Miss Universe/Miss World. Rachael left Launceston College on the advice of her College English teacher and modeling agent, Rebecca Miller, who initially accompanied her to Sydney to further her acting and modeling career. She boarded for a year with Garage Days actress Natalie Jain in Bondi before going out on her own. Rachael studied politics and history at the University of Sydney, before deferring her Law/Arts degree to appear on headLand.

Taylor has appeared in a number of United States productions – such as telemovies about Natalie Wood and the making of Dynasty (where she played Catherine Oxenberg), and the horror movies Man-thing and See No Evil. She played Sasha Forbes on the short-lived Australian drama series headLand, the first time she had played a character with her natural Australian accent. On April 3, 2006 it was announced that she had been nominated for a Logie Award for Most Popular New Female Talent for her role on headLand, in spite of the show having been removed from television 2 months earlier.

Taylor plays a lead role in Transformers directed by Michael Bay, where she keeps her native accent to emphasize the global scope of the movie, and is set to star in the 2008 remake of a 2004 Thai film Shutter.

--Wikipedia