diff --git a/vmware_nsx/common/utils.py b/vmware_nsx/common/utils.py
index 5c9db4febe..6c9c031c6f 100644
--- a/vmware_nsx/common/utils.py
+++ b/vmware_nsx/common/utils.py
@@ -29,6 +29,7 @@ LOG = log.getLogger(__name__)
 
 MAX_DISPLAY_NAME_LEN = 40
 MAX_RESOURCE_TYPE_LEN = 20
+MAX_TAG_LEN = 40
 NEUTRON_VERSION = version.version_info.release_string()
 NSX_NEUTRON_PLUGIN = 'NSX Neutron plugin'
 OS_NEUTRON_ID_SCOPE = 'os-neutron-id'
@@ -132,13 +133,13 @@ def build_v3_tags_payload(resource, resource_type, project_name):
     if not project_name:
         project_name = 'NSX Neutron plugin'
     return [{'scope': resource_type,
-             'tag': resource.get('id', '')},
+             'tag': resource.get('id', '')[:MAX_TAG_LEN]},
             {'scope': 'os-project-id',
-             'tag': resource.get('tenant_id', '')},
+             'tag': resource.get('tenant_id', '')[:MAX_TAG_LEN]},
             {'scope': 'os-project-name',
-             'tag': project_name},
+             'tag': project_name[:MAX_TAG_LEN]},
             {'scope': 'os-api-version',
-             'tag': version.version_info.release_string()}]
+             'tag': version.version_info.release_string()[:MAX_TAG_LEN]}]
 
 
 def retry_upon_exception_nsxv3(exc, delay=500, max_delay=2000,
diff --git a/vmware_nsx/tests/unit/nsx_v3/test_plugin.py b/vmware_nsx/tests/unit/nsx_v3/test_plugin.py
index fe9783dee3..983e594e53 100644
--- a/vmware_nsx/tests/unit/nsx_v3/test_plugin.py
+++ b/vmware_nsx/tests/unit/nsx_v3/test_plugin.py
@@ -451,3 +451,16 @@ class TestNsxV3Utils(NsxV3PluginTestCaseMixin):
         expected = '%s%s' % ('X' * (80 - len(suffix)), suffix)
         short_name = utils.get_name_and_uuid(name, uuid)
         self.assertEqual(expected, short_name)
+
+    def test_build_v3_tags_max_length_payload(self):
+        result = utils.build_v3_tags_payload(
+            {'id': 'X' * 255,
+             'tenant_id': 'X' * 255},
+            resource_type='os-neutron-net-id',
+            project_name='X' * 255)
+        expected = [{'scope': 'os-neutron-net-id', 'tag': 'X' * 40},
+                    {'scope': 'os-project-id', 'tag': 'X' * 40},
+                    {'scope': 'os-project-name', 'tag': 'X' * 40},
+                    {'scope': 'os-api-version',
+                     'tag': version.version_info.release_string()}]
+        self.assertEqual(expected, result)