Matmo, packing gusts of up to 173 kilometres per hour, slammed into the east overnight, becoming the first tropical storm to make landfall on the island this year, the Central Weather Bureau said.
The storm's powerful winds tore off roofs and uprooted trees, including one in Taipei that crashed into a taxi, injuring its driver and a passenger.
Emergency officials said a further three people were injured in the capital and four elsewhere, either by falling trees or flying debris, bringing the total hurt to nine.
It was located around 180 kilometres south of Matsu, a Taiwan-controlled island off Fujian, at 0830 IST, according to the Central Weather Bureau.
Typhoon Matmo dumped up to 0.6 metres of water in the east and the mountainous areas in the southeast, the bureau said.
Despite moving away from the island, the typhoon "is forecast to spark more rains in the mountainous areas of the southeast and residents there need to keep taking precautions", an official at the bureau warned.
Some 5,400 residents living in the mountainous areas prone to landslides were evacuated.
As many tourists were evacuated from Green Island and Orchid Island, two popular scenic spots off the southeastern Taitung county, yesterday.
The local government said shipping services between the two islets and Taitung had been suspended from yesterday for three days.
Last year, Taiwan was battered by Typhoon Soulik, whose torrential rains and powerful winds left two people dead and at least 100 injured.
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