die Taille
waist
The narrowest part of the human torso, located between the ribs and the hips.
Das Kleid betont ihre schmale Taille.
The dress emphasizes her slim waist.

waist
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waist
The narrowest part of the human torso, located between the ribs and the hips.
Das Kleid betont ihre schmale Taille.
The dress emphasizes her slim waist.

You can tell from context whether the body part or part of a garment is meant. If people are talking about a person, it refers to the body. If they are talking about a dress, pants, or a skirt, it refers to the corresponding part of the garment.
Er legte seinen Arm um ihre Taille.
He put his arm around her waist.
When talking about the waist as a body part, adjectives such as 'schmal' (narrow/slim), 'schlank' (slim), or 'breit' (wide) are often used. Verbs such as 'betonen' (to emphasize) or 'haben' (to have) are also common.
Sie trainiert viel, um eine schlanke Taille zu bekommen.
She works out a lot to get a slim waist.
When it comes to clothing, 'Taille' (waist) describes the fit of the garment. People often say that the waist is 'zu eng' (too tight) or 'zu weit' (too wide), or that it needs to be 'angepasst' (altered/adjusted).
Der Schneider kann die Taille der Jacke anpassen.
The tailor can adjust the waist of the jacket.
federation / waistband / bunch
'der Bund' and 'die Taille' can both have to do with clothing and the area around the middle of the body. 'die Taille' usually means the narrow part of the body between the ribs and the hips. In clothing, it can also refer to the part that sits there. 'der Bund', by contrast, means the upper edge of a pair of trousers or a skirt, so it is a part of the garment. The words can be confused because the waistband often sits at the waist. In practice: 'die Taille' belongs to the body or to the shape of the garment; 'der Bund' is the firm edge of the clothing.

Das Kleid sitzt an der Taille sehr gut.
The dress fits very well at the waist.
Der Bund meiner Hose ist nach dem Waschen etwas enger geworden.
The waistband of my trousers has become a little tighter after washing.