diff --git a/src/components/Task/Modal/Form/Inputs/TagsAutocomplete/TagsAutocomplete.tsx b/src/components/Task/Modal/Form/Inputs/TagsAutocomplete/TagsAutocomplete.tsx
index 17cb282973..b69ea6d9ae 100644
--- a/src/components/Task/Modal/Form/Inputs/TagsAutocomplete/TagsAutocomplete.tsx
+++ b/src/components/Task/Modal/Form/Inputs/TagsAutocomplete/TagsAutocomplete.tsx
@@ -13,6 +13,7 @@ interface TagsAutocompleteProps {
   value: string[];
   onChange: (tagList: string[]) => void;
   label?: string;
+  selectedSuggestedTags?: string[];
 }
 
 export const TagsAutocomplete: React.FC<TagsAutocompleteProps> = ({
@@ -21,6 +22,7 @@ export const TagsAutocomplete: React.FC<TagsAutocompleteProps> = ({
   value,
   onChange,
   label,
+  selectedSuggestedTags,
 }) => {
   const { t } = useTranslation();
 
@@ -32,7 +34,11 @@ export const TagsAutocomplete: React.FC<TagsAutocompleteProps> = ({
   });
   // Because of the @skip and @include directives, only contactTagList or taskTagList will be populated, but not both
   const options =
-    data?.accountList.contactTagList ?? data?.accountList.taskTagList ?? [];
+    data?.accountList.contactTagList ??
+    data?.accountList?.taskTagList?.filter(
+      (tag) => !selectedSuggestedTags?.includes(tag),
+    ) ??
+    [];
 
   return (
     <Autocomplete
diff --git a/src/components/Task/Modal/Form/TaskModalForm.test.tsx b/src/components/Task/Modal/Form/TaskModalForm.test.tsx
index 53a8d6c361..22b422f98e 100644
--- a/src/components/Task/Modal/Form/TaskModalForm.test.tsx
+++ b/src/components/Task/Modal/Form/TaskModalForm.test.tsx
@@ -199,6 +199,66 @@ describe('TaskModalForm', () => {
     });
   }, 10000);
 
+  it('should toggle suggested tags and additional tags', async () => {
+    const { findByRole, getByRole, queryByRole } = render(
+      <LocalizationProvider dateAdapter={AdapterLuxon}>
+        <SnackbarProvider>
+          <GqlMockedProvider<{
+            AssigneeOptions: AssigneeOptionsQuery;
+            ContactOptions: ContactOptionsQuery;
+            TagOptions: TagOptionsQuery;
+          }>
+            mocks={{
+              AssigneeOptions: {
+                accountListUsers: {
+                  nodes: [
+                    {
+                      user: { id: 'user-1', firstName: 'User', lastName: '1' },
+                    },
+                    {
+                      user: { id: 'user-2', firstName: 'User', lastName: '2' },
+                    },
+                  ],
+                },
+              },
+              ContactOptions: {
+                contacts: {
+                  nodes: [
+                    { id: 'contact-1', name: 'Contact 1' },
+                    { id: 'contact-2', name: 'Contact 2' },
+                  ],
+                },
+              },
+              TagOptions: {
+                accountList: {
+                  taskTagList: ['tag-1', 'tag-2'],
+                },
+              },
+            }}
+            onCall={mutationSpy}
+          >
+            <TaskModalForm accountListId={accountListId} onClose={onClose} />
+          </GqlMockedProvider>
+        </SnackbarProvider>
+      </LocalizationProvider>,
+    );
+
+    userEvent.click(getByRole('combobox', { name: 'Task Type' }));
+    userEvent.click(await findByRole('option', { name: 'Appointment' }));
+
+    expect(getByRole('combobox', { name: 'Tags' })).toBeInTheDocument();
+
+    userEvent.click(getByRole('combobox', { name: 'Tags' }));
+    userEvent.click(await findByRole('option', { name: 'tag-1' }));
+
+    expect(getByRole('button', { name: 'tag-1' })).toBeInTheDocument();
+
+    userEvent.click(getByRole('combobox', { name: 'Tags' }));
+    await waitFor(() =>
+      expect(queryByRole('option', { name: 'tag-1' })).not.toBeInTheDocument(),
+    );
+  });
+
   it('persisted', async () => {
     const {
       getByRole,
diff --git a/src/components/Task/Modal/Form/TaskModalForm.tsx b/src/components/Task/Modal/Form/TaskModalForm.tsx
index 98da978f36..aa192701fa 100644
--- a/src/components/Task/Modal/Form/TaskModalForm.tsx
+++ b/src/components/Task/Modal/Form/TaskModalForm.tsx
@@ -1,5 +1,6 @@
 import React, {
   ReactElement,
+  useCallback,
   useEffect,
   useMemo,
   useRef,
@@ -391,6 +392,39 @@ const TaskModalForm = ({
     setTimeout(() => activityRef?.current?.focus(), 50);
   };
 
+  const handleChangeAutocomplete = useCallback(
+    (autoCompleteTagList: string[], tagList: string[]) => {
+      const suggested = autoCompleteTagList.filter((tag) =>
+        phaseTags.some(
+          (phaseTag) => phaseTag.toLowerCase() === tag.toLowerCase(),
+        ),
+      );
+
+      if (suggested.length) {
+        setSelectedSuggestedTags([
+          ...selectedSuggestedTags,
+          ...suggested.filter(
+            (tag) =>
+              !selectedSuggestedTags
+                .map((t) => t.toLowerCase())
+                .includes(tag.toLowerCase()),
+          ),
+        ]);
+      }
+
+      const removedTag = tagList.find(
+        (tag) => !autoCompleteTagList.includes(tag),
+      );
+
+      if (removedTag && selectedSuggestedTags.includes(removedTag)) {
+        setSelectedSuggestedTags((prev) =>
+          prev.filter((tag) => tag !== removedTag),
+        );
+      }
+    },
+    [phaseTags, setSelectedSuggestedTags, selectedSuggestedTags],
+  );
+
   return (
     <Formik
       initialValues={initialTask}
@@ -620,15 +654,26 @@ const TaskModalForm = ({
                 <PhaseTags
                   tags={phaseTags}
                   selectedTags={selectedSuggestedTags}
-                  setSelectedTags={setSelectedSuggestedTags}
+                  setSelectedTags={(tags) => {
+                    setSelectedSuggestedTags(tags);
+                    // Remove any deselected suggested tags from tagList as well
+                    setFieldValue(
+                      'tagList',
+                      tagList.filter((tag) => tags.includes(tag)),
+                    );
+                  }}
                 />
               )}
               <Grid item xs={12}>
                 <TagsAutocomplete
                   accountListId={accountListId}
+                  selectedSuggestedTags={selectedSuggestedTags}
                   type={TagTypeEnum.Tag}
-                  value={tagList ?? []}
-                  onChange={(tagList) => setFieldValue('tagList', tagList)}
+                  value={tagList || []}
+                  onChange={(autoCompleteTagList) => {
+                    setFieldValue('tagList', autoCompleteTagList);
+                    handleChangeAutocomplete(autoCompleteTagList, tagList);
+                  }}
                   label={
                     phaseTags?.length && initialTask.completedAt
                       ? t('Additional Tags')