diff --git a/cosmos/providers/dbt/dag.py b/cosmos/providers/dbt/dag.py
index 255912fed..0362efd43 100644
--- a/cosmos/providers/dbt/dag.py
+++ b/cosmos/providers/dbt/dag.py
@@ -8,6 +8,7 @@ def DbtDag(
     dbt_args: dict = None,
     emit_datasets: bool = True,
     dbt_root_path: str = "/usr/local/airflow/dbt",
+    include_tags: list = None,
     **kwargs,
 ):
     """
@@ -23,6 +24,8 @@ def DbtDag(
     :type emit_datasets: bool
     :param dbt_root_path: The path to the dbt root directory
     :type dbt_root_path: str
+    :param include_tags: A list of tags to filter the dbt project
+    :type include_tags: list
     :param kwargs: Additional kwargs to pass to the DAG
     :type kwargs: dict
     :return: The rendered DAG
@@ -35,6 +38,7 @@ def DbtDag(
         dbt_args=dbt_args,
         emit_datasets=emit_datasets,
         dbt_root_path=dbt_root_path,
+        include_tags=include_tags,
     )
     group = parser.parse()
 
diff --git a/cosmos/providers/dbt/parser/jinja.py b/cosmos/providers/dbt/parser/jinja.py
index 4b6d27a97..05c06d395 100644
--- a/cosmos/providers/dbt/parser/jinja.py
+++ b/cosmos/providers/dbt/parser/jinja.py
@@ -1,10 +1,13 @@
+from typing import Dict
+
 import os
-from typing import Dict, List
 from pathlib import Path
 
 import jinja2
+import yaml
+
 
-def extract_deps_from_models(project_path: str) -> Dict[str, List[str]]:
+def extract_model_data(project_path: str) -> Dict[str, Dict[str, list]]:
     """
     Takes a path to a dbt project and returns a list of all the
     models with their dependencies. Return value is a dictionary
@@ -30,23 +33,15 @@ def extract_deps_from_models(project_path: str) -> Dict[str, List[str]]:
         raise ValueError(f"models_path {models_path} is not a directory.")
 
     # get all the files recursively
-    all_files = [
-        os.path.join(root, f)
-        for root, _, files in os.walk(models_path)
-        for f in files
-    ]
-
-    # get all the model files
-    model_files = [
-        path for path in all_files
-        if os.path.isfile(path) and path.endswith(".sql")
-    ]
+    all_files = [os.path.join(root, f) for root, _, files in os.walk(models_path) for f in files]
 
+    model_data = {}
 
-    dependencies = {}
+    # MODELS (SQL Files)
+    model_files = [path for path in all_files if os.path.isfile(path) and path.endswith(".sql")]
 
     for model_file in model_files:
-        with open(model_file, "r", encoding="utf-8") as f:
+        with open(model_file, encoding="utf-8") as f:
             model = f.read()
 
         env = jinja2.Environment()
@@ -54,12 +49,44 @@ def extract_deps_from_models(project_path: str) -> Dict[str, List[str]]:
 
         # if there's a dependency, add it to the list
         model_deps = []
+        tags = []
         for base_node in ast.find_all(jinja2.nodes.Call):
             if hasattr(base_node.node, "name"):
                 if base_node.node.name == "ref":
                     model_deps.append(base_node.args[0].value)
+                if base_node.node.name == "config" and base_node.kwargs[0].key == "tags":
+                    lst = base_node.kwargs[0].value
+                    tags = [x.value for x in lst.items if lst.items]
 
         # add the dependencies to the dictionary, without the .sql extension
-        dependencies[Path(model_file).stem] = model_deps
+        # add the tags to the dictionary
+        model_data[Path(model_file).stem] = {"dependencies": model_deps, "tags": tags}
+
+    # PROPERTIES.YML
+    properties_files = [path for path in all_files if os.path.isfile(path) and path.endswith(".yml")]
+
+    # get tags for models from property files
+    for properties_file in properties_files:
+        with open(properties_file) as f:
+            properties = yaml.safe_load(f)
+
+        models = properties["models"]
+        for model in models:
+            properties_tags = []
+
+            if "config" in model:
+                config = model["config"]
+                [properties_tags.append(item) for item in config.get("tags", [])]
+                [properties_tags.append(item) for item in config.get("+tags", [])]
+
+            if model.get("name") in model_data:
+                # add tags to model_data without deleting the tags collected from models
+                exiting_tags = model_data[model.get("name")]["tags"]
+                model_data[model.get("name")]["tags"] = list(set(exiting_tags).union(set(properties_tags)))
+
+    # TODO: Decide if we want to include tags from the project file
+
+    # DBT_PROJECT.YML
+    # project_file = os.path.join(project_path, "dbt_project.yml")
 
-    return dependencies
\ No newline at end of file
+    return model_data
diff --git a/cosmos/providers/dbt/parser/project.py b/cosmos/providers/dbt/parser/project.py
index 724c29c4b..0a5c6e5ab 100644
--- a/cosmos/providers/dbt/parser/project.py
+++ b/cosmos/providers/dbt/parser/project.py
@@ -6,7 +6,9 @@
 from cosmos.core.graph.entities import Group, Task
 from cosmos.core.parse.base_parser import BaseParser
 
-from .jinja import extract_deps_from_models
+from .jinja import extract_model_data
+
+# from .jinja import extract_model_tags
 from .utils import validate_directory
 
 logger = logging.getLogger(__name__)
@@ -24,6 +26,7 @@ def __init__(
         dbt_args: dict = {},
         dbt_root_path: str = "/usr/local/airflow/dbt",
         emit_datasets: bool = True,
+        include_tags: list = None,
     ):
         """
         Initializes the parser.
@@ -38,6 +41,8 @@ def __init__(
         :type dbt_root_path: str
         :param emit_datasets: If enabled test nodes emit Airflow Datasets for downstream cross-DAG dependencies
         :type emit_datasets: bool
+        :param include_tags: A list of tags to filter the dbt project
+        :type include_tags: list
         """
         # validate the dbt root path
         self.project_name = project_name
@@ -59,11 +64,14 @@ def __init__(
         # emit datasets from test tasks unless false
         self.emit_datasets = emit_datasets
 
+        # list of tags to filter down to
+        self.include_tags = include_tags
+
     def parse(self):
         """
         Parses the dbt project in the project_path into `cosmos` entities.
         """
-        models = extract_deps_from_models(project_path=self.project_path)
+        models = extract_model_data(project_path=self.project_path)
 
         project_name = os.path.basename(self.project_path)
 
@@ -71,49 +79,65 @@ def parse(self):
 
         entities = {}
 
-        for model, deps in models.items():
-            args = {
-                "conn_id": self.conn_id,
-                "project_dir": self.project_path,
-                "models": model,
-                **self.dbt_args,
-            }
-            # make the run task
-            run_task = Task(
-                id=f"{model}_run",
-                operator_class="cosmos.providers.dbt.core.operators.DbtRunOperator",
-                arguments=args,
-            )
-            entities[run_task.id] = run_task
-
-            # make the test task
-            if self.emit_datasets:
-                args["outlets"] = [Dataset(f"DBT://{self.conn_id.upper()}/{self.project_name.upper()}/{model.upper()}")]
-            test_task = Task(
-                id=f"{model}_test",
-                operator_class="cosmos.providers.dbt.core.operators.DbtTestOperator",
-                upstream_entity_ids=[run_task.id],
-                arguments=args,
-            )
-            entities[test_task.id] = test_task
-
-            # make the group
-            model_group = Group(
-                id=model,
-                entities=[run_task, test_task],
-            )
-            entities[model_group.id] = model_group
-
-            # just add to base group for now
-            base_group.add_entity(entity=model_group)
+        for model, attr in models.items():
+            included = True
+            if self.include_tags:
+                for item in self.include_tags:
+                    if item not in attr["tags"]:
+                        included = False
+
+            if included:
+                args = {
+                    "conn_id": self.conn_id,
+                    "project_dir": self.project_path,
+                    "models": model,
+                    **self.dbt_args,
+                }
+                # make the run task
+                run_task = Task(
+                    id=f"{model}_run",
+                    operator_class="cosmos.providers.dbt.core.operators.DbtRunOperator",
+                    arguments=args,
+                )
+                entities[run_task.id] = run_task
+
+                # make the test task
+                if self.emit_datasets:
+                    args["outlets"] = [
+                        Dataset(f"DBT://{self.conn_id.upper()}/{self.project_name.upper()}/{model.upper()}")
+                    ]
+                test_task = Task(
+                    id=f"{model}_test",
+                    operator_class="cosmos.providers.dbt.core.operators.DbtTestOperator",
+                    upstream_entity_ids=[run_task.id],
+                    arguments=args,
+                )
+                entities[test_task.id] = test_task
+
+                # make the group
+                model_group = Group(
+                    id=model,
+                    entities=[run_task, test_task],
+                )
+                entities[model_group.id] = model_group
+
+                # just add to base group for now
+                base_group.add_entity(entity=model_group)
 
         # add dependencies
-        for model, deps in models.items():
-            for dep in deps:
-                try:
-                    dep_task = entities[dep]
-                    entities[model].add_upstream(dep_task)
-                except KeyError:
-                    logger.error(f"Dependency {dep} not found for model {model}")
+        for model, attr in models.items():
+            included = True
+            if self.include_tags:
+                for item in self.include_tags:
+                    if item not in attr["tags"]:
+                        included = False
+
+            if included:
+                for dep in attr["dependencies"]:
+                    try:
+                        dep_task = entities[dep]
+                        entities[model].add_upstream(dep_task)
+                    except KeyError:
+                        logger.error(f"Dependency {dep} not found for model {model}")
 
         return base_group
diff --git a/cosmos/providers/dbt/task_group.py b/cosmos/providers/dbt/task_group.py
index 4a9b84db2..e08b2518c 100644
--- a/cosmos/providers/dbt/task_group.py
+++ b/cosmos/providers/dbt/task_group.py
@@ -11,6 +11,7 @@ def DbtTaskGroup(
     dbt_args: dict = None,
     emit_datasets: bool = True,
     dbt_root_path: str = "/usr/local/airflow/dbt",
+    include_tags: list = None,
     **kwargs,
 ):
     """
@@ -27,6 +28,8 @@ def DbtTaskGroup(
     :param kwargs: Additional kwargs to pass to the DAG
     :param dbt_root_path: The path to the dbt root directory
     :type dbt_root_path: str
+    :param include_tags: A list of tags to filter the dbt project
+    :type include_tags: list
     :type kwargs: dict
     :return: The rendered Task Group
     :rtype: airflow.utils.task_group.TaskGroup
@@ -38,6 +41,7 @@ def DbtTaskGroup(
         dbt_args=dbt_args,
         emit_datasets=emit_datasets,
         dbt_root_path=dbt_root_path,
+        include_tags=include_tags,
     )
     group = parser.parse()