diff --git a/app/activitypub/util.py b/app/activitypub/util.py
index 46b48c68..17ad579d 100644
--- a/app/activitypub/util.py
+++ b/app/activitypub/util.py
@@ -13,7 +13,7 @@ from sqlalchemy import text, func
 from app import db, cache, constants, celery
 from app.models import User, Post, Community, BannedInstances, File, PostReply, AllowedInstances, Instance, utcnow, \
     PostVote, PostReplyVote, ActivityPubLog, Notification, Site, CommunityMember, InstanceRole, Report, Conversation, \
-    Language
+    Language, Tag
 from app.activitypub.signature import signed_get_request
 import time
 import base64
@@ -374,6 +374,23 @@ def find_language_or_create(code: str, name: str) -> Language:
         return new_language
 
 
+def find_hashtag_or_create(hashtag: str) -> Tag:
+    if hashtag is None or hashtag == '':
+        return None
+
+    hashtag = hashtag.strip()
+    if hashtag[0] == '#':
+        hashtag = hashtag[1:]
+
+    existing_tag = Tag.query.filter(Tag.name == hashtag.lower()).first()
+    if existing_tag:
+        return existing_tag
+    else:
+        new_tag = Tag(name=hashtag.lower(), display_as=hashtag)
+        db.session.add(new_tag)
+        return new_tag
+
+
 def extract_domain_and_actor(url_string: str):
     # Parse the URL
     parsed_url = urlparse(url_string)
@@ -765,6 +782,13 @@ def post_json_to_model(activity_log, post_json, user, community) -> Post:
             if language:
                 post.language_id = language.id
 
+        if 'tag' in post_json:
+            for json_tag in post_json['tag']:
+                if json_tag['type'] == 'Hashtag':
+                    hashtag = find_hashtag_or_create(json_tag['name'])
+                    if hashtag:
+                        post.tags.append(hashtag)
+
         if post is not None:
             if 'image' in post_json and post.image is None:
                 image = File(source_url=post_json['image']['url'])
@@ -1496,6 +1520,12 @@ def create_post(activity_log: ActivityPubLog, community: Community, request_json
             language = find_language_or_create(request_json['object']['language']['identifier'],
                                                request_json['object']['language']['name'])
             post.language_id = language.id
+        if 'tag' in request_json['object'] and isinstance(request_json['object']['tag'], list):
+            for json_tag in request_json['object']['tag']:
+                if json_tag['type'] == 'Hashtag':
+                    hashtag = find_hashtag_or_create(json_tag['name'])
+                    if hashtag:
+                        post.tags.append(hashtag)
         if 'image' in request_json['object'] and post.image is None:
             image = File(source_url=request_json['object']['image']['url'])
             db.session.add(image)
@@ -1721,6 +1751,13 @@ def update_post_from_activity(post: Post, request_json: dict):
         post.nsfl = True
     elif 'nsfl' in request_json['object']:
         post.nsfl = request_json['object']['nsfl']
+    if 'tag' in request_json['object'] and isinstance(request_json['object']['tag'], list):
+        db.session.execute(text('DELETE FROM "post_tag" WHERE post_id = :post_id'), {'post_id': post.id})
+        for json_tag in request_json['object']['tag']:
+            if json_tag['type'] == 'Hashtag':
+                hashtag = find_hashtag_or_create(json_tag['name'])
+                if hashtag:
+                    post.tags.append(hashtag)
     post.comments_enabled = request_json['object']['commentsEnabled'] if 'commentsEnabled' in request_json['object'] else True
     post.edited_at = utcnow()
     db.session.commit()
diff --git a/app/models.py b/app/models.py
index a6867805..aeb5edee 100644
--- a/app/models.py
+++ b/app/models.py
@@ -172,7 +172,8 @@ class ChatMessage(db.Model):
 
 class Tag(db.Model):
     id = db.Column(db.Integer, primary_key=True)
-    name = db.Column(db.String(256))
+    name = db.Column(db.String(256), index=True)    # lowercase version of tag, e.g. solarstorm
+    display_as = db.Column(db.String(256))          # Version of tag with uppercase letters, e.g. SolarStorm
 
 
 class Language(db.Model):
diff --git a/migrations/versions/20ee24728510_tag_formatting.py b/migrations/versions/20ee24728510_tag_formatting.py
new file mode 100644
index 00000000..46adf6fa
--- /dev/null
+++ b/migrations/versions/20ee24728510_tag_formatting.py
@@ -0,0 +1,34 @@
+"""tag formatting
+
+Revision ID: 20ee24728510
+Revises: 9ad372b72d7c
+Create Date: 2024-05-11 13:42:31.772863
+
+"""
+from alembic import op
+import sqlalchemy as sa
+
+
+# revision identifiers, used by Alembic.
+revision = '20ee24728510'
+down_revision = '9ad372b72d7c'
+branch_labels = None
+depends_on = None
+
+
+def upgrade():
+    # ### commands auto generated by Alembic - please adjust! ###
+    with op.batch_alter_table('tag', schema=None) as batch_op:
+        batch_op.add_column(sa.Column('display_as', sa.String(length=256), nullable=True))
+        batch_op.create_index(batch_op.f('ix_tag_name'), ['name'], unique=False)
+
+    # ### end Alembic commands ###
+
+
+def downgrade():
+    # ### commands auto generated by Alembic - please adjust! ###
+    with op.batch_alter_table('tag', schema=None) as batch_op:
+        batch_op.drop_index(batch_op.f('ix_tag_name'))
+        batch_op.drop_column('display_as')
+
+    # ### end Alembic commands ###