diff --git a/packages/loot-core/src/server/db/index.ts b/packages/loot-core/src/server/db/index.ts
index 263825cd95..eabd79effe 100644
--- a/packages/loot-core/src/server/db/index.ts
+++ b/packages/loot-core/src/server/db/index.ts
@@ -839,7 +839,7 @@ export function findTags() {
     `
     SELECT notes
     FROM transactions
-    WHERE notes LIKE ?
+    WHERE tombstone = 0 AND notes LIKE ?
   `,
     ['%#%'],
   );
diff --git a/upcoming-release-notes/5409.md b/upcoming-release-notes/5409.md
new file mode 100644
index 0000000000..f1e150bafa
--- /dev/null
+++ b/upcoming-release-notes/5409.md
@@ -0,0 +1,6 @@
+---
+category: Bugfix
+authors: [pogman-code]
+---
+
+Do not search tags in deleted transactions