diff --git a/app/assets/javascripts/components/AutocompleteTagHint.tsx b/app/assets/javascripts/components/AutocompleteTagHint.tsx
new file mode 100644
index 000000000..65630b4f4
--- /dev/null
+++ b/app/assets/javascripts/components/AutocompleteTagHint.tsx
@@ -0,0 +1,42 @@
+import { AppState } from '@/ui_models/app_state';
+import { observer } from 'mobx-react-lite';
+import { Icon } from './Icon';
+
+type Props = {
+  appState: AppState;
+  closeOnBlur: (event: { relatedTarget: EventTarget | null }) => void;
+};
+
+export const AutocompleteTagHint = observer(
+  ({ appState, closeOnBlur }: Props) => {
+    const { autocompleteSearchQuery, autocompleteTagResults } =
+      appState.activeNote;
+
+    const onTagHintClick = async () => {
+      await appState.activeNote.createAndAddNewTag();
+    };
+
+    return (
+      <>
+        {autocompleteTagResults.length > 0 && (
+          <div className="h-1px my-2 bg-border"></div>
+        )}
+        <button
+          type="button"
+          className="sn-dropdown-item"
+          onClick={onTagHintClick}
+          onBlur={closeOnBlur}
+        >
+          <span>Create new tag:</span>
+          <span className="bg-contrast rounded text-xs color-text py-1 pl-1 pr-2 flex items-center ml-2">
+            <Icon
+              type="hashtag"
+              className="sn-icon--small color-neutral mr-1"
+            />
+            {autocompleteSearchQuery}
+          </span>
+        </button>
+      </>
+    );
+  }
+);
diff --git a/app/assets/javascripts/components/AutocompleteTagInput.tsx b/app/assets/javascripts/components/AutocompleteTagInput.tsx
index 4fbfab6a0..fa8efc6fc 100644
--- a/app/assets/javascripts/components/AutocompleteTagInput.tsx
+++ b/app/assets/javascripts/components/AutocompleteTagInput.tsx
@@ -1,53 +1,35 @@
-import { WebApplication } from '@/ui_models/application';
-import { SNTag } from '@standardnotes/snjs';
-import { FunctionalComponent } from 'preact';
 import { useEffect, useRef, useState } from 'preact/hooks';
-import { Icon } from './Icon';
 import { Disclosure, DisclosurePanel } from '@reach/disclosure';
 import { useCloseOnBlur } from './utils';
 import { AppState } from '@/ui_models/app_state';
+import { AutocompleteTagResult } from './AutocompleteTagResult';
+import { AutocompleteTagHint } from './AutocompleteTagHint';
+import { observer } from 'mobx-react-lite';
 
 type Props = {
-  application: WebApplication;
   appState: AppState;
 };
 
-export const AutocompleteTagInput: FunctionalComponent<Props> = ({
-  application,
-  appState,
-}) => {
-  const { tagElements, tags } = appState.activeNote;
+export const AutocompleteTagInput = observer(({ appState }: Props) => {
+  const {
+    autocompleteSearchQuery,
+    autocompleteTagHintVisible,
+    autocompleteTagResults,
+    tagElements,
+    tags,
+  } = appState.activeNote;
 
-  const [searchQuery, setSearchQuery] = useState('');
   const [dropdownVisible, setDropdownVisible] = useState(false);
   const [dropdownMaxHeight, setDropdownMaxHeight] =
     useState<number | 'auto'>('auto');
-  const [hintVisible, setHintVisible] = useState(true);
-
-  const getActiveNoteTagResults = (query: string) => {
-    const { activeNote } = appState.activeNote;
-    return application.searchTags(query, activeNote);
-  };
-
-  const [tagResults, setTagResults] = useState<SNTag[]>(() => {
-    return getActiveNoteTagResults('');
-  });
 
   const inputRef = useRef<HTMLInputElement>();
   const dropdownRef = useRef<HTMLDivElement>();
 
-  const clearResults = () => {
-    setSearchQuery('');
-    setTagResults(getActiveNoteTagResults(''));
-  };
-
-  const [closeOnBlur] = useCloseOnBlur(
-    dropdownRef,
-    (visible: boolean) => {
-      setDropdownVisible(visible);
-      clearResults();
-    }
-  );
+  const [closeOnBlur] = useCloseOnBlur(dropdownRef, (visible: boolean) => {
+    setDropdownVisible(visible);
+    appState.activeNote.clearAutocompleteSearch();
+  });
 
   const showDropdown = () => {
     const { clientHeight } = document.documentElement;
@@ -58,43 +40,29 @@ export const AutocompleteTagInput: FunctionalComponent<Props> = ({
 
   const onSearchQueryChange = (event: Event) => {
     const query = (event.target as HTMLInputElement).value;
-    setTagResults(getActiveNoteTagResults(query));
-    setSearchQuery(query);
-  };
-
-  const onTagOptionClick = async (tag: SNTag) => {
-    await appState.activeNote.addTagToActiveNote(tag);
-    clearResults();
-  };
-
-  const createAndAddNewTag = async () => {
-    const newTag = await application.findOrCreateTag(searchQuery);
-    await appState.activeNote.addTagToActiveNote(newTag);
-    clearResults();
-  };
-
-  const onTagHintClick = async () => {
-    await createAndAddNewTag();
+    appState.activeNote.setAutocompleteSearchQuery(query);
+    appState.activeNote.searchActiveNoteAutocompleteTags();
   };
 
   const onFormSubmit = async (event: Event) => {
     event.preventDefault();
-    await createAndAddNewTag();
+    await appState.activeNote.createAndAddNewTag();
   };
 
   useEffect(() => {
-    setHintVisible(
-      searchQuery !== '' && !tagResults.some((tag) => tag.title === searchQuery)
-    );
-  }, [tagResults, searchQuery]);
+    appState.activeNote.searchActiveNoteAutocompleteTags();
+  }, [appState.activeNote]);
 
   return (
-    <form onSubmit={onFormSubmit} className={`${tags.length > 0 ? 'mt-2' : ''}`}>
+    <form
+      onSubmit={onFormSubmit}
+      className={`${tags.length > 0 ? 'mt-2' : ''}`}
+    >
       <Disclosure open={dropdownVisible} onChange={showDropdown}>
         <input
           ref={inputRef}
           className="w-80 bg-default text-xs color-text no-border h-7 focus:outline-none focus:shadow-none focus:border-bottom"
-          value={searchQuery}
+          value={autocompleteSearchQuery}
           onChange={onSearchQueryChange}
           type="text"
           placeholder="Add tag"
@@ -103,7 +71,7 @@ export const AutocompleteTagInput: FunctionalComponent<Props> = ({
           onKeyUp={(event) => {
             if (
               event.key === 'Backspace' &&
-              searchQuery === '' &&
+              autocompleteSearchQuery === '' &&
               tagElements.length > 0
             ) {
               tagElements[tagElements.length - 1]?.focus();
@@ -117,66 +85,24 @@ export const AutocompleteTagInput: FunctionalComponent<Props> = ({
             style={{ maxHeight: dropdownMaxHeight }}
           >
             <div className="overflow-y-scroll">
-              {tagResults.map((tag) => {
-                return (
-                  <button
-                    key={tag.uuid}
-                    type="button"
-                    className="sn-dropdown-item"
-                    onClick={() => onTagOptionClick(tag)}
-                    onBlur={closeOnBlur}
-                  >
-                    <Icon type="hashtag" className="color-neutral mr-2 min-h-5 min-w-5" />
-                    <span className="whitespace-nowrap overflow-hidden overflow-ellipsis">
-                      {searchQuery === '' ? (
-                        tag.title
-                      ) : (
-                        tag.title
-                          .split(new RegExp(`(${searchQuery})`, 'gi'))
-                          .map((substring, index) => (
-                            <span
-                              key={index}
-                              className={`${
-                                substring.toLowerCase() ===
-                                searchQuery.toLowerCase()
-                                  ? 'font-bold whitespace-pre-wrap'
-                                  : 'whitespace-pre-wrap '
-                              }`}
-                            >
-                              {substring}
-                            </span>
-                          ))
-                      )}
-                    </span>
-                  </button>
-                );
-              })}
+              {autocompleteTagResults.map((tagResult) => (
+                <AutocompleteTagResult
+                  key={tagResult.uuid}
+                  appState={appState}
+                  tagResult={tagResult}
+                  closeOnBlur={closeOnBlur}
+                />
+              ))}
             </div>
-            {hintVisible && (
-              <>
-                {tagResults.length > 0 && (
-                  <div className="h-1px my-2 bg-border"></div>
-                )}
-                <button
-                  type="button"
-                  className="sn-dropdown-item"
-                  onClick={onTagHintClick}
-                  onBlur={closeOnBlur}
-                >
-                  <span>Create new tag:</span>
-                  <span className="bg-contrast rounded text-xs color-text py-1 pl-1 pr-2 flex items-center ml-2">
-                    <Icon
-                      type="hashtag"
-                      className="sn-icon--small color-neutral mr-1"
-                    />
-                    {searchQuery}
-                  </span>
-                </button>
-              </>
+            {autocompleteTagHintVisible && (
+              <AutocompleteTagHint
+                appState={appState}
+                closeOnBlur={closeOnBlur}
+              />
             )}
           </DisclosurePanel>
         )}
       </Disclosure>
     </form>
   );
-};
+});
diff --git a/app/assets/javascripts/components/AutocompleteTagResult.tsx b/app/assets/javascripts/components/AutocompleteTagResult.tsx
new file mode 100644
index 000000000..f61830f16
--- /dev/null
+++ b/app/assets/javascripts/components/AutocompleteTagResult.tsx
@@ -0,0 +1,59 @@
+import { AppState } from '@/ui_models/app_state';
+import { SNTag } from '@standardnotes/snjs';
+import { observer } from 'mobx-react-lite';
+import { Icon } from './Icon';
+
+type Props = {
+  appState: AppState;
+  tagResult: SNTag;
+  closeOnBlur: (event: { relatedTarget: EventTarget | null }) => void;
+};
+
+export const AutocompleteTagResult = observer(
+  ({ appState, tagResult, closeOnBlur }: Props) => {
+    const { autocompleteSearchQuery } = appState.activeNote;
+
+    const onTagOptionClick = async (tag: SNTag) => {
+      await appState.activeNote.addTagToActiveNote(tag);
+      appState.activeNote.clearAutocompleteSearch();
+    };
+
+    return (
+      <button
+        ref={(element) => {
+          if (element) {
+            appState.activeNote.setAutocompleteTagResultElement(
+              tagResult,
+              element
+            );
+          }
+        }}
+        type="button"
+        className="sn-dropdown-item"
+        onClick={() => onTagOptionClick(tagResult)}
+        onBlur={closeOnBlur}
+      >
+        <Icon type="hashtag" className="color-neutral mr-2 min-h-5 min-w-5" />
+        <span className="whitespace-nowrap overflow-hidden overflow-ellipsis">
+          {autocompleteSearchQuery === ''
+            ? tagResult.title
+            : tagResult.title
+                .split(new RegExp(`(${autocompleteSearchQuery})`, 'gi'))
+                .map((substring, index) => (
+                  <span
+                    key={index}
+                    className={`${
+                      substring.toLowerCase() ===
+                      autocompleteSearchQuery.toLowerCase()
+                        ? 'font-bold whitespace-pre-wrap'
+                        : 'whitespace-pre-wrap '
+                    }`}
+                  >
+                    {substring}
+                  </span>
+                ))}
+        </span>
+      </button>
+    );
+  }
+);
diff --git a/app/assets/javascripts/components/NoteTag.tsx b/app/assets/javascripts/components/NoteTag.tsx
index 36c9bba8a..a0bf2f73c 100644
--- a/app/assets/javascripts/components/NoteTag.tsx
+++ b/app/assets/javascripts/components/NoteTag.tsx
@@ -1,18 +1,16 @@
 import { Icon } from './Icon';
-import { FunctionalComponent } from 'preact';
 import { useRef, useState } from 'preact/hooks';
 import { AppState } from '@/ui_models/app_state';
 import { SNTag } from '@standardnotes/snjs/dist/@types';
+import { observer } from 'mobx-react-lite';
 
 type Props = {
   appState: AppState;
   tag: SNTag;
 };
 
-export const NoteTag: FunctionalComponent<Props> = ({ appState, tag }) => {
-  const {
-    tagsContainerMaxWidth,
-  } = appState.activeNote;
+export const NoteTag = observer(({ appState, tag }: Props) => {
+  const { tagsContainerMaxWidth } = appState.activeNote;
 
   const [showDeleteButton, setShowDeleteButton] = useState(false);
   const deleteTagRef = useRef<HTMLButtonElement>();
@@ -41,14 +39,14 @@ export const NoteTag: FunctionalComponent<Props> = ({ appState, tag }) => {
     let nextTagElement;
 
     switch (event.key) {
-      case "Backspace":
+      case 'Backspace':
         deleteTag();
         break;
-      case "ArrowLeft":
+      case 'ArrowLeft':
         previousTagElement = appState.activeNote.getPreviousTagElement(tag);
         previousTagElement?.focus();
         break;
-      case "ArrowRight":
+      case 'ArrowRight':
         nextTagElement = appState.activeNote.getNextTagElement(tag);
         nextTagElement?.focus();
         break;
@@ -92,4 +90,4 @@ export const NoteTag: FunctionalComponent<Props> = ({ appState, tag }) => {
       )}
     </button>
   );
-};
+});
diff --git a/app/assets/javascripts/components/NoteTagsContainer.tsx b/app/assets/javascripts/components/NoteTagsContainer.tsx
index ff0d2e087..dbf73fceb 100644
--- a/app/assets/javascripts/components/NoteTagsContainer.tsx
+++ b/app/assets/javascripts/components/NoteTagsContainer.tsx
@@ -2,16 +2,14 @@ import { AppState } from '@/ui_models/app_state';
 import { observer } from 'mobx-react-lite';
 import { toDirective } from './utils';
 import { AutocompleteTagInput } from './AutocompleteTagInput';
-import { WebApplication } from '@/ui_models/application';
 import { NoteTag } from './NoteTag';
 import { useEffect } from 'preact/hooks';
 
 type Props = {
-  application: WebApplication;
   appState: AppState;
 };
 
-const NoteTagsContainer = observer(({ application, appState }: Props) => {
+const NoteTagsContainer = observer(({ appState }: Props) => {
   const {
     tags,
     tagsContainerMaxWidth,
@@ -35,7 +33,7 @@ const NoteTagsContainer = observer(({ application, appState }: Props) => {
             tag={tag}
           />
         ))}
-        <AutocompleteTagInput application={application} appState={appState} />
+        <AutocompleteTagInput appState={appState} />
       </div>
   );
 });
diff --git a/app/assets/javascripts/ui_models/app_state/active_note_state.ts b/app/assets/javascripts/ui_models/app_state/active_note_state.ts
index 775120d21..c7a0dc124 100644
--- a/app/assets/javascripts/ui_models/app_state/active_note_state.ts
+++ b/app/assets/javascripts/ui_models/app_state/active_note_state.ts
@@ -1,17 +1,12 @@
-import {
-  SNNote,
-  ContentType,
-  SNTag,
-} from '@standardnotes/snjs';
-import {
-  action,
-  makeObservable,
-  observable,
-} from 'mobx';
+import { SNNote, ContentType, SNTag } from '@standardnotes/snjs';
+import { action, computed, makeObservable, observable } from 'mobx';
 import { WebApplication } from '../application';
 import { AppState } from './app_state';
 
 export class ActiveNoteState {
+  autocompleteSearchQuery = '';
+  autocompleteTagResultElements: (HTMLButtonElement | undefined)[] = [];
+  autocompleteTagResults: SNTag[] = [];
   tagElements: (HTMLButtonElement | undefined)[] = [];
   tags: SNTag[] = [];
   tagsContainerMaxWidth: number | 'auto' = 0;
@@ -22,11 +17,22 @@ export class ActiveNoteState {
     appEventListeners: (() => void)[]
   ) {
     makeObservable(this, {
+      autocompleteSearchQuery: observable,
+      autocompleteTagResultElements: observable,
+      autocompleteTagResults: observable,
       tagElements: observable,
       tags: observable,
       tagsContainerMaxWidth: observable,
 
+      autocompleteTagHintVisible: computed,
+
+      clearAutocompleteSearch: action,
+      setAutocompleteSearchQuery: action,
+      setAutocompleteTagResultElement: action,
+      setAutocompleteTagResultElements: action,
+      setAutocompleteTagResults: action,
       setTagElement: action,
+      setTagElements: action,
       setTags: action,
       setTagsContainerMaxWidth: action,
       reloadTags: action,
@@ -43,8 +49,41 @@ export class ActiveNoteState {
     return this.appState.notes.activeEditor?.note;
   }
 
+  get autocompleteTagHintVisible(): boolean {
+    return (
+      this.autocompleteSearchQuery !== '' &&
+      !this.autocompleteTagResults.some(
+        (tagResult) => tagResult.title === this.autocompleteSearchQuery
+      )
+    );
+  }
+
+  setAutocompleteSearchQuery(query: string): void {
+    this.autocompleteSearchQuery = query;
+  }
+
+  setAutocompleteTagResultElement(
+    tagResult: SNTag,
+    element: HTMLButtonElement
+  ): void {
+    const tagIndex = this.getTagIndex(tagResult, this.autocompleteTagResults);
+    if (tagIndex > -1) {
+      this.autocompleteTagResultElements.splice(tagIndex, 1, element);
+    }
+  }
+
+  setAutocompleteTagResultElements(
+    elements: (HTMLButtonElement | undefined)[]
+  ): void {
+    this.autocompleteTagResultElements = elements;
+  }
+
+  setAutocompleteTagResults(results: SNTag[]): void {
+    this.autocompleteTagResults = results;
+  }
+
   setTagElement(tag: SNTag, element: HTMLButtonElement): void {
-    const tagIndex = this.getTagIndex(tag);
+    const tagIndex = this.getTagIndex(tag, this.tags);
     if (tagIndex > -1) {
       this.tagElements.splice(tagIndex, 1, element);
     }
@@ -62,19 +101,38 @@ export class ActiveNoteState {
     this.tagsContainerMaxWidth = width;
   }
 
-  getTagIndex(tag: SNTag): number {
-    return this.tags.findIndex(t => t.uuid === tag.uuid);
+  clearAutocompleteSearch(): void {
+    this.setAutocompleteSearchQuery('');
+    this.searchActiveNoteAutocompleteTags();
+  }
+
+  async createAndAddNewTag(): Promise<void> {
+    const newTag = await this.application.findOrCreateTag(this.autocompleteSearchQuery);
+    await this.addTagToActiveNote(newTag);
+    this.clearAutocompleteSearch();
+  }
+
+  searchActiveNoteAutocompleteTags(): void {
+    const newResults = this.application.searchTags(
+      this.autocompleteSearchQuery,
+      this.activeNote
+    );
+    this.setAutocompleteTagResults(newResults);
+  }
+
+  getTagIndex(tag: SNTag, tagsArr: SNTag[]): number {
+    return tagsArr.findIndex((t) => t.uuid === tag.uuid);
   }
 
   getPreviousTagElement(tag: SNTag): HTMLButtonElement | undefined {
-    const previousTagIndex = this.getTagIndex(tag) - 1;
+    const previousTagIndex = this.getTagIndex(tag, this.tags) - 1;
     if (previousTagIndex > -1 && this.tagElements.length > previousTagIndex) {
       return this.tagElements[previousTagIndex];
     }
   }
 
   getNextTagElement(tag: SNTag): HTMLButtonElement | undefined {
-    const nextTagIndex = this.getTagIndex(tag) + 1;
+    const nextTagIndex = this.getTagIndex(tag, this.tags) + 1;
     if (nextTagIndex > -1 && this.tagElements.length > nextTagIndex) {
       return this.tagElements[nextTagIndex];
     }
@@ -94,9 +152,7 @@ export class ActiveNoteState {
     const EDITOR_ELEMENT_ID = 'editor-column';
     const editorWidth = document.getElementById(EDITOR_ELEMENT_ID)?.clientWidth;
     if (editorWidth) {
-      this.appState.activeNote.setTagsContainerMaxWidth(
-        editorWidth
-      );
+      this.setTagsContainerMaxWidth(editorWidth);
     }
   }
 
diff --git a/app/assets/javascripts/views/editor/editor-view.pug b/app/assets/javascripts/views/editor/editor-view.pug
index 9cb2f8e4c..dcaa5b45d 100644
--- a/app/assets/javascripts/views/editor/editor-view.pug
+++ b/app/assets/javascripts/views/editor/editor-view.pug
@@ -53,7 +53,6 @@
             ng-if='self.appState.notes.selectedNotesCount > 0'
           )
       note-tags-container(
-        application='self.application'
         app-state='self.appState'
       )
     .sn-component(ng-if='self.note')