diff --git a/sytest-whitelist b/sytest-whitelist
index c2ed60b9f..bb4f0a279 100644
--- a/sytest-whitelist
+++ b/sytest-whitelist
@@ -759,4 +759,6 @@ Can filter rooms/{roomId}/members
 Current state appears in timeline in private history with many messages after
 AS can publish rooms in their own list
 AS and main public room lists are separate
-/upgrade preserves direct room state
\ No newline at end of file
+/upgrade preserves direct room state
+local user has tags copied to the new room
+remote user has tags copied to the new room
\ No newline at end of file
diff --git a/userapi/consumers/roomserver.go b/userapi/consumers/roomserver.go
index c818e1ad3..b6b30a095 100644
--- a/userapi/consumers/roomserver.go
+++ b/userapi/consumers/roomserver.go
@@ -2,7 +2,9 @@ package consumers
 
 import (
 	"context"
+	"database/sql"
 	"encoding/json"
+	"errors"
 	"fmt"
 	"strings"
 	"sync"
@@ -190,20 +192,25 @@ func (s *OutputRoomEventConsumer) storeMessageStats(ctx context.Context, eventTy
 func (s *OutputRoomEventConsumer) handleRoomUpgrade(ctx context.Context, oldRoomID, newRoomID string, localMembers []*localMembership, roomSize int) error {
 	for _, membership := range localMembers {
 		// Copy any existing push rules from old -> new room
-		if err := s.copyPushrules(ctx, oldRoomID, newRoomID, membership); err != nil {
+		if err := s.copyPushrules(ctx, oldRoomID, newRoomID, membership.Localpart); err != nil {
 			return err
 		}
 
 		// preserve m.direct room state
-		if err := s.updateMDirect(ctx, oldRoomID, newRoomID, membership, roomSize); err != nil {
+		if err := s.updateMDirect(ctx, oldRoomID, newRoomID, membership.Localpart, roomSize); err != nil {
+			return err
+		}
+
+		// copy existing m.tag entries, if any
+		if err := s.copyTags(ctx, oldRoomID, newRoomID, membership.Localpart); err != nil {
 			return err
 		}
 	}
 	return nil
 }
 
-func (s *OutputRoomEventConsumer) copyPushrules(ctx context.Context, oldRoomID string, newRoomID string, membership *localMembership) error {
-	pushRules, err := s.db.QueryPushRules(ctx, membership.Localpart)
+func (s *OutputRoomEventConsumer) copyPushrules(ctx context.Context, oldRoomID, newRoomID string, localpart string) error {
+	pushRules, err := s.db.QueryPushRules(ctx, localpart)
 	if err != nil {
 		return fmt.Errorf("failed to query pushrules for user: %w", err)
 	}
@@ -222,7 +229,7 @@ func (s *OutputRoomEventConsumer) copyPushrules(ctx context.Context, oldRoomID s
 		if err != nil {
 			return err
 		}
-		if err = s.db.SaveAccountData(ctx, membership.Localpart, "", "m.push_rules", rules); err != nil {
+		if err = s.db.SaveAccountData(ctx, localpart, "", "m.push_rules", rules); err != nil {
 			return fmt.Errorf("failed to update pushrules: %w", err)
 		}
 	}
@@ -230,13 +237,13 @@ func (s *OutputRoomEventConsumer) copyPushrules(ctx context.Context, oldRoomID s
 }
 
 // updateMDirect copies the "is_direct" flag from oldRoomID to newROomID
-func (s *OutputRoomEventConsumer) updateMDirect(ctx context.Context, oldRoomID, newRoomID string, membership *localMembership, roomSize int) error {
+func (s *OutputRoomEventConsumer) updateMDirect(ctx context.Context, oldRoomID, newRoomID, localpart string, roomSize int) error {
 	// this is most likely not a DM, so skip updating m.direct state
 	if roomSize > 2 {
 		return nil
 	}
 	// Get direct message state
-	directChatsRaw, err := s.db.GetAccountDataByType(ctx, membership.Localpart, "", "m.direct")
+	directChatsRaw, err := s.db.GetAccountDataByType(ctx, localpart, "", "m.direct")
 	if err != nil {
 		return fmt.Errorf("failed to get m.direct from database: %w", err)
 	}
@@ -260,7 +267,7 @@ func (s *OutputRoomEventConsumer) updateMDirect(ctx context.Context, oldRoomID,
 			if err != nil {
 				return true
 			}
-			if err = s.db.SaveAccountData(ctx, membership.Localpart, "", "m.direct", data); err != nil {
+			if err = s.db.SaveAccountData(ctx, localpart, "", "m.direct", data); err != nil {
 				return true
 			}
 		}
@@ -272,6 +279,17 @@ func (s *OutputRoomEventConsumer) updateMDirect(ctx context.Context, oldRoomID,
 	return nil
 }
 
+func (s *OutputRoomEventConsumer) copyTags(ctx context.Context, oldRoomID, newRoomID, localpart string) error {
+	tag, err := s.db.GetAccountDataByType(ctx, localpart, oldRoomID, "m.tag")
+	if err != nil && !errors.Is(err, sql.ErrNoRows) {
+		return err
+	}
+	if tag == nil {
+		return nil
+	}
+	return s.db.SaveAccountData(ctx, localpart, newRoomID, "m.tag", tag)
+}
+
 func (s *OutputRoomEventConsumer) processMessage(ctx context.Context, event *gomatrixserverlib.HeaderedEvent, streamPos uint64) error {
 	members, roomSize, err := s.localRoomMembers(ctx, event.RoomID())
 	if err != nil {