diff --git a/app/assets/javascripts/components/TagsListItem.tsx b/app/assets/javascripts/components/TagsListItem.tsx
index 091c8e68f..593edea10 100644
--- a/app/assets/javascripts/components/TagsListItem.tsx
+++ b/app/assets/javascripts/components/TagsListItem.tsx
@@ -1,5 +1,6 @@
+import { TagsState } from '@/ui_models/app_state/tags_state';
 import { SNTag } from '@standardnotes/snjs';
-import { runInAction } from 'mobx';
+import { computed, runInAction } from 'mobx';
 import { observer } from 'mobx-react-lite';
 import { FunctionComponent, JSX } from 'preact';
 import { useCallback, useEffect, useRef, useState } from 'preact/hooks';
@@ -14,6 +15,7 @@ type Props = {
 
 export type TagsListState = {
   readonly selectedTag: SNTag | undefined;
+  tags: TagsState;
   editingTag: SNTag | undefined;
 };
 
@@ -24,7 +26,7 @@ export const TagsListItem: FunctionComponent<Props> = observer(
 
     const isSelected = appState.selectedTag === tag;
     const isEditing = appState.editingTag === tag;
-    const noteCounts = tag.noteCount;
+    const noteCounts = computed(() => appState.tags.getNotesCount(tag));
 
     useEffect(() => {
       setTitle(tag.title || '');
@@ -97,7 +99,7 @@ export const TagsListItem: FunctionComponent<Props> = observer(
               spellCheck={false}
               ref={inputRef}
             />
-            <div className="count">{noteCounts}</div>
+            <div className="count">{noteCounts.get()}</div>
           </div>
         ) : null}
         {tag.conflictOf && (
diff --git a/app/assets/javascripts/ui_models/app_state/tags_state.ts b/app/assets/javascripts/ui_models/app_state/tags_state.ts
index a2e2377e6..3aeb99d10 100644
--- a/app/assets/javascripts/ui_models/app_state/tags_state.ts
+++ b/app/assets/javascripts/ui_models/app_state/tags_state.ts
@@ -1,15 +1,25 @@
 import { ContentType, SNSmartTag, SNTag } from '@standardnotes/snjs';
-import { computed, makeObservable, observable, runInAction } from 'mobx';
+import {
+  action,
+  computed,
+  makeAutoObservable,
+  makeObservable,
+  observable,
+  runInAction,
+} from 'mobx';
 import { WebApplication } from '../application';
 
 export class TagsState {
   tags: SNTag[] = [];
   smartTags: SNSmartTag[] = [];
+  private readonly tagsCountsState: TagsCountsState;
 
   constructor(
     private application: WebApplication,
     appEventListeners: (() => void)[]
   ) {
+    this.tagsCountsState = new TagsCountsState(this.application);
+
     makeObservable(this, {
       tags: observable,
       smartTags: observable,
@@ -26,13 +36,46 @@ export class TagsState {
               ContentType.Tag
             ) as SNTag[];
             this.smartTags = this.application.getSmartTags();
+
+            this.tagsCountsState.update(this.tags);
           });
         }
       )
     );
   }
 
+  public getNotesCount(tag: SNTag): number {
+    return this.tagsCountsState.counts[tag.uuid] || 0;
+  }
+
   get tagsCount(): number {
     return this.tags.length;
   }
 }
+
+/**
+ * Bug fix for issue 1201550111577311,
+ */
+class TagsCountsState {
+  public counts: { [uuid: string]: number } = {};
+
+  public constructor(private application: WebApplication) {
+    makeAutoObservable(this, {
+      counts: observable.ref,
+      update: action,
+    });
+  }
+
+  public update(tags: SNTag[]) {
+    const newCounts: { [uuid: string]: number } = {};
+
+    tags.forEach((tag) => {
+      newCounts[tag.uuid] = this.application.referencesForItem(
+        tag,
+        ContentType.Note
+      ).length;
+    });
+
+    this.counts = newCounts;
+  }
+}