Microservice architecture has emerged as the predominant choice for cloud-native applications, owing to its flexibility, autonomy, and consistent deployment practices. The increasing specialization of microservices significantly differentiates them from their monolithic counterparts and enables industry leaders such as Google, Netflix, and Amazon to achieve rapid innovation, scalability, and seamless system delivery. This migration to microservices is driven by the need for more agile and responsive systems that can meet the demands of modern applications. However, migrating from a monolithic architecture to microservices introduces challenges, including the imperative need for meticulous planning regarding scalability, performance, and maintenance. This study aims to identify the key characteristics influencing the decision to make this transition and develop a comprehensive taxonomy through a systematic literature review (SLR) covering the past decade and validation by an expert panel. The taxonomy comprises three main domains: Technical, Organizational, and Project-Specific Considerations, with 7 sub-dimensions such as scalability, maintainability, performance, etc. By addressing these sub-dimensions, this paper aims to provide organizations with valuable insights to navigate the complexities of migration, managing technical debt and leveraging the inherent advantages of microservice architecture to achieve long-term success.