The vanadium redox flow battery (VRFB) is a highly favorable tool for storing renewable energy, and the catalytic activity of electrode materials is crucial for its development. Taurine-functionalized carbon nanotubes (CNTs) were prepared with the aim of augmenting the redox process of vanadium ions and enhancing the efficiency of the VRFB. Sulfonated CNTs were synthesized through a simple modification process in a taurine solution and used as electrocatalysts for redox reactions involving VO²⁺/VO₂⁺ and V²⁺/V³⁺. The SO₃H-CNTs modified at 60 °C for 2 h exhibit the best electrocatalytic activity, showing higher redox peak current values compared to pristine carboxylated CNTs (COOH-CNTs). Sulfonic acid groups added to the surface of CNTs increase active sites for redox reactions and act as carriers for mass transfer and bridges for charge transfer, accelerating the rate of the electrode reactions. A battery consisting of SO₃H-CNTs as catalysts demonstrates the outstanding charge–discharge performance at a current density of 300 mA∙cm⁻². This configuration displays voltage and energy efficiencies of 81.46% and 78.83%, respectively, representing enhancements of 6.15% and 6.12% compared to that equipped with conventional graphite felts (75.31%, 72.71%). This study illustrates that taurine-functionalized carbon nanotubes serve as an efficient and promising catalyst for both the anode and cathode, leading to the improved performance of the VRFB.