diff --git a/src/stories/components/Tag.stories.tsx b/src/components/BoemlyTag/BoemlyTag.stories.tsx
similarity index 65%
rename from src/stories/components/Tag.stories.tsx
rename to src/components/BoemlyTag/BoemlyTag.stories.tsx
index bd5c2bc..6efcce3 100644
--- a/src/stories/components/Tag.stories.tsx
+++ b/src/components/BoemlyTag/BoemlyTag.stories.tsx
@@ -1,12 +1,11 @@
 import React from 'react';
 import { Meta, StoryFn } from '@storybook/react';
-
-import { Tag } from '../..';
+import { BoemlyTag, BoemlyTagProps } from './BoemlyTag';
 import { COLOR_SCHEMES } from '../../constants/colorSchemes';
 
 export default {
-  title: 'Components/Tag',
-  component: Tag,
+  title: 'components/BoemlyTag',
+  component: BoemlyTag,
   argTypes: {
     variant: {
       options: ['solid', 'subtle', 'outline'],
@@ -20,6 +19,13 @@ export default {
       options: COLOR_SCHEMES,
       control: { type: 'radio' },
     },
+    isClosable: {
+      options: [true, false],
+      control: { type: 'boolean' },
+    },
+    onClose: {
+      action: 'closed',
+    },
   },
   args: {
     children: 'Tag',
@@ -27,21 +33,24 @@ export default {
     size: 'md',
     colorScheme: 'primary',
   },
-} as Meta<typeof Tag>;
+} as Meta<typeof BoemlyTag>;
 
-const Template: StoryFn<typeof Tag> = (args) => <Tag {...args} />;
+const Template: StoryFn<BoemlyTagProps> = (args) => <BoemlyTag {...args} />;
 
 export const Subtle = Template.bind({});
 Subtle.args = {
   variant: 'subtle',
+  isClosable: true,
 };
 
 export const Solid = Template.bind({});
 Solid.args = {
   variant: 'solid',
+  isClosable: true,
 };
 
 export const Outline = Template.bind({});
 Outline.args = {
   variant: 'outline',
+  isClosable: true,
 };
diff --git a/src/components/BoemlyTag/BoemlyTag.test.tsx b/src/components/BoemlyTag/BoemlyTag.test.tsx
new file mode 100644
index 0000000..a55730e
--- /dev/null
+++ b/src/components/BoemlyTag/BoemlyTag.test.tsx
@@ -0,0 +1,32 @@
+import React from 'react';
+import { screen, render, fireEvent } from '../../test/testUtils';
+import { BoemlyTag, BoemlyTagProps } from './BoemlyTag';
+
+const defaultProps: BoemlyTagProps = {
+  children: 'Test Tag',
+  variant: 'solid',
+  colorScheme: 'blue',
+};
+
+const setup = (props: BoemlyTagProps = defaultProps) => {
+  render(<BoemlyTag {...props} />);
+};
+
+describe('The BoemlyTag component', () => {
+  it('renders the tag without a close button if closable is false', () => {
+    setup({ ...defaultProps, isClosable: false });
+
+    expect(screen.getByText('Test Tag')).toBeInTheDocument();
+    expect(screen.queryByRole('button')).not.toBeInTheDocument();
+  });
+
+  it('closes the tag when the close button is clicked', () => {
+    setup({ ...defaultProps, isClosable: true });
+
+    expect(screen.getByText('Test Tag')).toBeInTheDocument();
+
+    fireEvent.click(screen.getByRole('button'));
+
+    expect(screen.queryByText('Test Tag')).not.toBeInTheDocument();
+  });
+});
diff --git a/src/components/BoemlyTag/BoemlyTag.tsx b/src/components/BoemlyTag/BoemlyTag.tsx
new file mode 100644
index 0000000..cebc23a
--- /dev/null
+++ b/src/components/BoemlyTag/BoemlyTag.tsx
@@ -0,0 +1,32 @@
+import React, { useState } from 'react';
+import { Tag, TagCloseButton, TagLabel, TagProps } from '@chakra-ui/react';
+
+export interface BoemlyTagProps extends TagProps {
+  isClosable?: boolean;
+  onClose?: () => void;
+}
+
+export const BoemlyTag = ({
+  isClosable = false,
+  onClose,
+  children,
+  ...props
+}: BoemlyTagProps): JSX.Element => {
+  const [isVisible, setIsVisible] = useState(true);
+
+  const handleClose = () => {
+    setIsVisible(false);
+    if (onClose) {
+      onClose();
+    }
+  };
+
+  if (!isVisible) return <></>;
+
+  return (
+    <Tag {...props}>
+      <TagLabel>{children}</TagLabel>
+      {isClosable && <TagCloseButton onClick={handleClose} />}
+    </Tag>
+  );
+};
diff --git a/src/components/BoemlyTag/index.ts b/src/components/BoemlyTag/index.ts
new file mode 100644
index 0000000..38a20c6
--- /dev/null
+++ b/src/components/BoemlyTag/index.ts
@@ -0,0 +1 @@
+export { BoemlyTag } from './BoemlyTag';
diff --git a/src/index.tsx b/src/index.tsx
index 4864bef..7105e65 100644
--- a/src/index.tsx
+++ b/src/index.tsx
@@ -35,6 +35,7 @@ export * from './components/BoemlyAlert';
 export * from './components/BoemlyFormControl';
 export * from './components/BoemlySteps';
 export * from './components/BoemlyTabs';
+export * from './components/BoemlyTag';
 export * from './components/BoemlyThemeProvider';
 export * from './components/Wrapper';
 export * from './components/ConfirmAction';