diff --git a/awx/main/models/inventory.py b/awx/main/models/inventory.py
index baf4624726..c8bc88eb0b 100644
--- a/awx/main/models/inventory.py
+++ b/awx/main/models/inventory.py
@@ -2044,9 +2044,25 @@ class azure_rm(PluginFileInjector):
         for key, loc in old_filterables:
             value = source_vars.get(key, None)
             if value and isinstance(value, str):
-                user_filters.append('{} not in {}'.format(
-                    loc, value.split(',')
-                ))
+                # tags can be list of key:value pairs
+                #  e.g. 'Creator:jmarshall, peanutbutter:jelly'
+                # or tags can be a list of keys
+                #  e.g. 'Creator, peanutbutter'
+                if key == "tags":
+                    # grab each key value pair
+                    for kvpair in value.split(','):
+                        # split into key and value
+                        kv = kvpair.split(':')
+                        # filter out any host that does not have key
+                        # in their tags.keys() variable
+                        user_filters.append('"{}" not in tags.keys()'.format(kv[0].strip()))
+                        # if a value is provided, check that the key:value pair matches
+                        if len(kv) > 1:
+                            user_filters.append('tags["{}"] != "{}"'.format(kv[0].strip(), kv[1].strip()))
+                else:
+                    user_filters.append('{} not in {}'.format(
+                        loc, value.split(',')
+                    ))
         if user_filters:
             ret.setdefault('exclude_host_filters', [])
             ret['exclude_host_filters'].extend(user_filters)
diff --git a/awx/main/tests/data/inventory/plugins/azure_rm/files/azure_rm.yml b/awx/main/tests/data/inventory/plugins/azure_rm/files/azure_rm.yml
index 9dfcae9561..4479e79058 100644
--- a/awx/main/tests/data/inventory/plugins/azure_rm/files/azure_rm.yml
+++ b/awx/main/tests/data/inventory/plugins/azure_rm/files/azure_rm.yml
@@ -3,6 +3,10 @@ conditional_groups:
 default_host_filters: []
 exclude_host_filters:
 - resource_group not in ['foo_resources', 'bar_resources']
+- '"Creator" not in tags.keys()'
+- tags["Creator"] != "jmarshall"
+- '"peanutbutter" not in tags.keys()'
+- tags["peanutbutter"] != "jelly"
 - location not in ['southcentralus', 'westus']
 fail_on_template_errors: false
 hostvar_expressions:
diff --git a/awx/main/tests/data/inventory/scripts/azure_rm/files/file_reference b/awx/main/tests/data/inventory/scripts/azure_rm/files/file_reference
index 78f56e0e7a..e3410bff06 100644
--- a/awx/main/tests/data/inventory/scripts/azure_rm/files/file_reference
+++ b/awx/main/tests/data/inventory/scripts/azure_rm/files/file_reference
@@ -7,4 +7,5 @@ locations = southcentralus,westus
 base_source_var = value_of_var
 use_private_ip = True
 resource_groups = foo_resources,bar_resources
+tags = Creator:jmarshall, peanutbutter:jelly
 
diff --git a/awx/main/tests/functional/test_inventory_source_injectors.py b/awx/main/tests/functional/test_inventory_source_injectors.py
index 729658a58d..c41e596edc 100644
--- a/awx/main/tests/functional/test_inventory_source_injectors.py
+++ b/awx/main/tests/functional/test_inventory_source_injectors.py
@@ -54,7 +54,8 @@ INI_TEST_VARS = {
     },
     'azure_rm': {
         'use_private_ip': True,
-        'resource_groups': 'foo_resources,bar_resources'
+        'resource_groups': 'foo_resources,bar_resources',
+        'tags': 'Creator:jmarshall, peanutbutter:jelly'
     },
     'satellite6': {
         'satellite6_group_patterns': 'foo_group_patterns',