diff --git a/.changeset/empty-cups-drop.md b/.changeset/empty-cups-drop.md
new file mode 100644
index 0000000..c5323e0
--- /dev/null
+++ b/.changeset/empty-cups-drop.md
@@ -0,0 +1,5 @@
+---
+"@zenml-io/react-component-library": minor
+---
+
+add tag component
diff --git a/src/components/Button/index.ts b/src/components/Button/index.tsx
similarity index 100%
rename from src/components/Button/index.ts
rename to src/components/Button/index.tsx
diff --git a/src/components/Input/index.ts b/src/components/Input/index.tsx
similarity index 100%
rename from src/components/Input/index.ts
rename to src/components/Input/index.tsx
diff --git a/src/components/Tag/Tag.stories.tsx b/src/components/Tag/Tag.stories.tsx
new file mode 100644
index 0000000..a3ec10f
--- /dev/null
+++ b/src/components/Tag/Tag.stories.tsx
@@ -0,0 +1,83 @@
+import { Meta } from "@storybook/react";
+import { Tag } from "./index";
+import { StoryObj } from "@storybook/react";
+
+const meta = {
+	title: "Elements/Tag",
+	component: Tag,
+	argTypes: {
+		rounded: {
+			control: "boolean",
+			defaultValue: true
+		},
+		size: {
+			control: "select",
+			defaultValue: "sm",
+			options: ["sm", "xs"]
+		},
+		emphasis: {
+			control: "select",
+			defaultValue: "subtle",
+			options: ["bold", "subtle", "minimal"]
+		},
+		color: {
+			control: "select",
+			defaultValue: "blue",
+			options: [
+				"grey",
+				"purple",
+				"green",
+				"yellow",
+				"red",
+				"blue",
+				"teal",
+				"lime",
+				"magenta",
+				"turquoise",
+				"orange"
+			]
+		}
+	},
+	parameters: {
+		layout: "centered"
+	},
+
+	tags: ["autodocs"]
+} satisfies Meta<typeof Tag>;
+
+export default meta;
+
+type Story = StoryObj<typeof meta>;
+
+export const minimal: Story = {
+	name: "Minimal",
+	args: {
+		size: "sm",
+		rounded: true,
+		emphasis: "minimal",
+		color: "magenta",
+		children: "Classified"
+	}
+};
+
+export const subtle: Story = {
+	name: "Subtle",
+	args: {
+		size: "sm",
+		rounded: true,
+		emphasis: "subtle",
+		color: "magenta",
+		children: "Classified"
+	}
+};
+
+export const bold: Story = {
+	name: "Bold",
+	args: {
+		size: "sm",
+		rounded: true,
+		emphasis: "bold",
+		color: "magenta",
+		children: "Classified"
+	}
+};
diff --git a/src/components/Tag/Tag.tsx b/src/components/Tag/Tag.tsx
new file mode 100644
index 0000000..1a72a18
--- /dev/null
+++ b/src/components/Tag/Tag.tsx
@@ -0,0 +1,228 @@
+import { VariantProps, cva } from "class-variance-authority";
+import React, { HTMLAttributes, forwardRef } from "react";
+import { cn } from "../../utilities";
+
+export const tagVariants = cva("shrink-0 flex items-center justify-center gap-0.5 py-0.5 px-1", {
+	variants: {
+		rounded: { false: "rounded-md", true: "rounded-rounded" },
+		size: { sm: "h-6  text-text-sm", xs: "h-5 text-text-xs" },
+		emphasis: {
+			bold: "",
+			subtle: "border",
+			minimal: "border"
+		},
+		color: {
+			grey: "",
+			purple: "",
+			green: "",
+			yellow: "",
+			red: "",
+			blue: "",
+			teal: "",
+			lime: "",
+			magenta: "",
+			turquoise: "",
+			orange: ""
+		}
+	},
+	compoundVariants: [
+		// gray
+		{
+			emphasis: "bold",
+			color: "grey",
+			class: "bg-neutral-600 text-theme-text-negative"
+		},
+		{
+			emphasis: "subtle",
+			color: "grey",
+			class: "border-theme-border-moderate text-theme-text-secondary"
+		},
+		{
+			emphasis: "minimal",
+			color: "grey",
+			class: "border-theme-border-moderate text-theme-text-secondary"
+		},
+		// purple
+		{
+			emphasis: "bold",
+			color: "purple",
+			class: "bg-primary-400 text-theme-text-negative"
+		},
+		{
+			emphasis: "subtle",
+			color: "purple",
+			class: "border-primary-100 text-theme-text-brand bg-primary-25 "
+		},
+		{
+			emphasis: "minimal",
+			color: "purple",
+			class: "border-theme-border-moderate text-theme-text-brand"
+		},
+		// red
+		{
+			emphasis: "bold",
+			color: "red",
+			class: "bg-error-600 text-theme-text-negative"
+		},
+		{
+			emphasis: "subtle",
+			color: "red",
+			class: "bg-error-50 border-error-200 text-error-800"
+		},
+		{
+			emphasis: "minimal",
+			color: "red",
+			class: "border-theme-border-moderate text-error-800"
+		},
+		// green
+		{
+			emphasis: "bold",
+			color: "green",
+			class: "bg-success-600 text-theme-text-negative"
+		},
+		{
+			emphasis: "subtle",
+			color: "green",
+			class: "bg-success-50 border-success-200 text-success-800"
+		},
+		{
+			emphasis: "minimal",
+			color: "green",
+			class: "border-theme-border-moderate text-success-800"
+		},
+		// yellow
+		{
+			emphasis: "bold",
+			color: "yellow",
+			class: "bg-warning-400 text-warning-900"
+		},
+		{
+			emphasis: "subtle",
+			color: "yellow",
+			class: "bg-warning-50 border-warning-200 text-warning-900"
+		},
+		{
+			emphasis: "minimal",
+			color: "yellow",
+			class: "border-theme-border-moderate text-warning-900"
+		},
+		// blue
+		{
+			emphasis: "bold",
+			color: "blue",
+			class: "bg-blue-500 text-theme-text-negative"
+		},
+		{
+			emphasis: "subtle",
+			color: "blue",
+			class: "bg-blue-25 border-blue-100 text-blue-700"
+		},
+		{
+			emphasis: "minimal",
+			color: "blue",
+			class: "border-theme-border-moderate text-blue-700"
+		},
+		// teal
+		{
+			emphasis: "bold",
+			color: "teal",
+			class: "bg-teal-600 text-theme-text-negative"
+		},
+		{
+			emphasis: "subtle",
+			color: "teal",
+			class: "bg-teal-25 border-teal-100 text-teal-600"
+		},
+		{
+			emphasis: "minimal",
+			color: "teal",
+			class: "border-theme-border-moderate text-teal-600"
+		},
+		// lime
+		{
+			emphasis: "bold",
+			color: "lime",
+			class: "bg-lime-700 text-theme-text-negative"
+		},
+		{
+			emphasis: "subtle",
+			color: "lime",
+			class: "bg-lime-25 border-lime-100 text-lime-700"
+		},
+		{
+			emphasis: "minimal",
+			color: "lime",
+			class: "border-theme-border-moderate text-lime-700"
+		},
+		// magenta
+		{
+			emphasis: "bold",
+			color: "magenta",
+			class: "bg-magenta-500 text-theme-text-negative"
+		},
+		{
+			emphasis: "subtle",
+			color: "magenta",
+			class: "bg-magenta-25 border-magenta-100 text-magenta-600"
+		},
+		{
+			emphasis: "minimal",
+			color: "magenta",
+			class: "border-theme-border-moderate text-magenta-600"
+		},
+		// turquoise
+		{
+			emphasis: "bold",
+			color: "turquoise",
+			class: "bg-turquoise-500 text-theme-text-negative"
+		},
+		{
+			emphasis: "subtle",
+			color: "turquoise",
+			class: "bg-turquoise-25 border-turquoise-100 text-turquoise-600"
+		},
+		{
+			emphasis: "minimal",
+			color: "turquoise",
+			class: "border-theme-border-moderate text-turquoise-600"
+		},
+		// orange
+		{
+			emphasis: "bold",
+			color: "orange",
+			class: "bg-orange-400 text-theme-text-negative"
+		},
+		{
+			emphasis: "subtle",
+			color: "orange",
+			class: "bg-orange-25 border-orange-100 text-orange-700"
+		},
+		{
+			emphasis: "minimal",
+			color: "orange",
+			class: "border-theme-border-moderate text-orange-600"
+		}
+	],
+	defaultVariants: {
+		rounded: true,
+		size: "sm"
+	}
+});
+
+export interface TagProps
+	extends Omit<HTMLAttributes<HTMLDivElement>, "color">,
+		VariantProps<typeof tagVariants> {}
+
+export const Tag = forwardRef<HTMLDivElement, TagProps>(
+	({ className, rounded, emphasis, color, size, ...rest }, ref) => {
+		return (
+			<div
+				{...rest}
+				className={cn(tagVariants({ rounded, emphasis, color, size }), className)}
+				ref={ref}
+			></div>
+		);
+	}
+);
+
+Tag.displayName = "Tag";
diff --git a/src/components/Tag/index.tsx b/src/components/Tag/index.tsx
new file mode 100644
index 0000000..5b4c58b
--- /dev/null
+++ b/src/components/Tag/index.tsx
@@ -0,0 +1 @@
+export * from "./Tag";
diff --git a/src/components/index.ts b/src/components/index.ts
index bbfadeb..6a96195 100644
--- a/src/components/index.ts
+++ b/src/components/index.ts
@@ -6,3 +6,4 @@ export * from "./Avatar";
 export * from "./Skeleton";
 export * from "./Dropdown";
 export * from "./Table";
+export * from "./Tag";