New Zealand scored a mammoth 358 for six in their 50 overs and it proved too much for the minnows, who never looked remotely like challenging the target and ended on 261-9.
However, they played all their 50 overs for their highest total in the tournament.
They were in a perilous position at 4-2 before captain Ashish Bagai (84) and Jimmy Hansra (70 not out) came together to put on 125 for the fourth wicket and give the scoreboard a look of respectability.
Kyle Mills did the early damage for the Black Caps, dismissing Ruvindu Gunasekera and Zubin Surkari with just four runs on the board but he had to leave the field injured midway through his third over. Jacob Oram took 3-47.Earlier, Brendon McCullum’s aggressive hundred and Jesse Ryder’s explosive 74 to help the Black Caps set an improbable target of 359.McCullum hits 101, his third One-day International century, from 109 balls with 12 fours and two sixes while Taylor smashed five sixes and six boundaries during his 44-ball innings. In one devastating over Taylor, who smashed 131 in 124 balls against Pakistan, took 28 off Harvir Baidwan, smashing four sixes and a four.The stand-in skipper came to the crease in the 30th over with his side on 149 for two after a steady start against winless Canada, and injected urgency into the innings.
He was caught by Jimmy Hansra off the bowling of Balaji Rao while McCullum, who put on 53 with opening partner Martin Guptill (17) and 96 with Jesse Ryder (38) for the second wicket, perished in the first over of the batting powerplay, holing out to Ruvindu Gunasekera at extra cover.
Kane Williamson (34 not out) and Scott Styris (35) also joined in the onslaught, as the Canadian bowlers wilted, before a stunning cameo of 31 from James Franklin off just eight balls including three sixes and two fours.
New Zealand lashed 31 off the final over.
The pick of the bowlers for Canada was John Davison, whose 10 overs of spin yielded 1-30 but they were ragged in the field, dropping catches amid the New Zealand onslaught.
Baidwan went for a whopping 84 runs in his 9.1 overs and Rizwan Cheema was thrashed for 64 off just 4.5 overs.
The victory for New Zealand, without injured skipper Daniel Vettori, takes them to top spot in Group A with eight points, one clear of Sri Lanka, the only other team who have qualified for the quarter-finals.
Canada have two points after one win and four defeats.
