diff --git a/ci/roles/server/tasks/main.yml b/ci/roles/server/tasks/main.yml
index ba0c70d4..2809a575 100644
--- a/ci/roles/server/tasks/main.yml
+++ b/ci/roles/server/tasks/main.yml
@@ -241,40 +241,6 @@
     name: "{{ server_name }}"
     wait: true
 
-- name: Create server with tags
-  openstack.cloud.server:
-    cloud: "{{ cloud }}"
-    state: present
-    name: "{{ server_name }}"
-    image: "{{ image_name }}"
-    flavor: "{{ flavor_name }}"
-    network: "{{ server_network }}"
-    auto_ip: false
-    tags:
-      - first
-      - second
-    wait: true
-  register: server
-
-- debug: var=server
-
-- name: Get info about tags
-  openstack.cloud.server_info:
-    cloud: "{{ cloud }}"
-    server: "{{ server_name }}"
-  register: info
-
-- name: Check filter results
-  assert:
-    that: info.servers[0].tags == ["first", "second"]
-
-- name: Delete server with tags
-  openstack.cloud.server:
-    cloud: "{{ cloud }}"
-    state: absent
-    name: "{{ server_name }}"
-    wait: true
-
 - name: Create server from volume
   openstack.cloud.server:
     cloud: "{{ cloud }}"
@@ -433,6 +399,9 @@
       - port-id: "{{ port.port.id }}"
     reuse_ips: false
     state: present
+    tags:
+      - first
+      - second
     wait: true
   register: server
 
@@ -447,6 +416,7 @@
         |selectattr('OS-EXT-IPS:type', 'equalto', 'floating')
         |map(attribute='addr')
         |list|length == 0
+      - server.server.tags == ["first", "second"]
 
 - name: Find all floating ips for debugging
   openstack.cloud.floating_ip_info:
@@ -488,6 +458,8 @@
       - '{{ server_security_group }}'
       - '{{ server_alt_security_group }}'
     state: present
+    tags:
+      - yellow
     wait: true
   register: server_updated
 
@@ -509,6 +481,7 @@
       - server_updated.server.addresses[server_network]|length == 2
       - port.port.fixed_ips[0].ip_address in
         server_updated.server.addresses[server_network]|map(attribute='addr')
+      - server_updated.server.tags == ['yellow']
       # TODO: Verify networks once openstacksdk's issue #2010352 has been solved
       # Ref.: https://storyboard.openstack.org/#!/story/2010352
       #- server_updated.server.addresses.public|length > 0
@@ -543,6 +516,8 @@
       - '{{ server_security_group }}'
       - '{{ server_alt_security_group }}'
     state: present
+    tags:
+      - yellow
     wait: true
   register: server_updated_again
 
@@ -551,6 +526,7 @@
     that:
       - server.server.id == server_updated_again.server.id
       - server_updated_again is not changed
+      - server_updated_again.server.tags == ['yellow']
 
 # TODO: Drop failure test once openstacksdk's issue #2010352 has been solved
 # Ref.: https://storyboard.openstack.org/#!/story/2010352
diff --git a/plugins/modules/server.py b/plugins/modules/server.py
index 50cbfaaa..532fdbae 100644
--- a/plugins/modules/server.py
+++ b/plugins/modules/server.py
@@ -210,6 +210,7 @@ options:
         -  A list of tags should be added to instance
       type: list
       elements: str
+      default: []
     terminate_volume:
       description:
         - If C(true), delete volume when deleting the instance and if it has
@@ -831,7 +832,7 @@ class ServerModule(OpenStackModule):
         scheduler_hints=dict(type='dict'),
         security_groups=dict(default=[], type='list', elements='str'),
         state=dict(default='present', choices=['absent', 'present']),
-        tags=dict(type='list', elements='str'),
+        tags=dict(type='list', default=[], elements='str'),
         terminate_volume=dict(default=False, type='bool'),
         userdata=dict(),
         volume_size=dict(type='int'),
@@ -897,7 +898,8 @@ class ServerModule(OpenStackModule):
         return {
             **self._build_update_ips(server),
             **self._build_update_security_groups(server),
-            **self._build_update_server(server)}
+            **self._build_update_server(server),
+            **self._build_update_tags(server)}
 
     def _build_update_ips(self, server):
         auto_ip = self.params['auto_ip']
@@ -1037,6 +1039,13 @@ class ServerModule(OpenStackModule):
 
         return update
 
+    def _build_update_tags(self, server):
+        required_tags = self.params.get('tags')
+        if set(server["tags"]) == set(required_tags):
+            return {}
+        update = dict(tags=required_tags)
+        return update
+
     def _create(self):
         for k in ['auto_ip', 'floating_ips', 'floating_ip_pools']:
             if self.params[k] \
@@ -1111,6 +1120,7 @@ class ServerModule(OpenStackModule):
     def _update(self, server, update):
         server = self._update_ips(server, update)
         server = self._update_security_groups(server, update)
+        server = self._update_tags(server, update)
         server = self._update_server(server, update)
         # Refresh server attributes after security groups etc. have changed
         #
@@ -1183,6 +1193,16 @@ class ServerModule(OpenStackModule):
         # be postponed until all updates have been applied.
         return server
 
+    def _update_tags(self, server, update):
+        tags = update.get('tags')
+
+        self.conn.compute.put(
+            "/servers/{server_id}/tags".format(server_id=server['id']),
+            json={"tags": tags},
+            microversion="2.26"
+        )
+        return server
+
     def _parse_metadata(self, metadata):
         if not metadata:
             return {}