diff --git a/builtin/providers/aws/config.go b/builtin/providers/aws/config.go
index 672af6f07..7e84d3a27 100644
--- a/builtin/providers/aws/config.go
+++ b/builtin/providers/aws/config.go
@@ -10,6 +10,7 @@ import (
 	"github.com/hashicorp/aws-sdk-go/gen/autoscaling"
 	"github.com/hashicorp/aws-sdk-go/gen/ec2"
 	"github.com/hashicorp/aws-sdk-go/gen/elb"
+	"github.com/hashicorp/aws-sdk-go/gen/iam"
 	"github.com/hashicorp/aws-sdk-go/gen/rds"
 	"github.com/hashicorp/aws-sdk-go/gen/route53"
 	"github.com/hashicorp/aws-sdk-go/gen/s3"
@@ -30,6 +31,7 @@ type AWSClient struct {
 	r53conn         *route53.Route53
 	region          string
 	rdsconn         *rds.RDS
+	iamconn         *iam.IAM
 }
 
 // Client configures and returns a fully initailized AWSClient
@@ -70,6 +72,8 @@ func (c *Config) Client() (interface{}, error) {
 		client.r53conn = route53.New(creds, "us-east-1", nil)
 		log.Println("[INFO] Initializing EC2 Connection")
 		client.ec2conn = ec2.New(creds, c.Region, nil)
+
+		client.iamconn = iam.New(creds, c.Region, nil)
 	}
 
 	if len(errs) > 0 {
diff --git a/builtin/providers/aws/resource_aws_db_instance.go b/builtin/providers/aws/resource_aws_db_instance.go
index e99744a0f..c445a630b 100644
--- a/builtin/providers/aws/resource_aws_db_instance.go
+++ b/builtin/providers/aws/resource_aws_db_instance.go
@@ -6,6 +6,7 @@ import (
 	"time"
 
 	"github.com/hashicorp/aws-sdk-go/aws"
+	"github.com/hashicorp/aws-sdk-go/gen/iam"
 	"github.com/hashicorp/aws-sdk-go/gen/rds"
 
 	"github.com/hashicorp/terraform/helper/hashcode"
@@ -17,6 +18,7 @@ func resourceAwsDbInstance() *schema.Resource {
 	return &schema.Resource{
 		Create: resourceAwsDbInstanceCreate,
 		Read:   resourceAwsDbInstanceRead,
+		Update: resourceAwsDbInstanceUpdate,
 		Delete: resourceAwsDbInstanceDelete,
 
 		Schema: map[string]*schema.Schema{
@@ -185,12 +187,14 @@ func resourceAwsDbInstance() *schema.Resource {
 				Type:     schema.TypeString,
 				Computed: true,
 			},
+			"tags": tagsSchema(),
 		},
 	}
 }
 
 func resourceAwsDbInstanceCreate(d *schema.ResourceData, meta interface{}) error {
 	conn := meta.(*AWSClient).rdsconn
+	tags := tagsFromMapRDS(d.Get("tags").(map[string]interface{}))
 	opts := rds.CreateDBInstanceMessage{
 		AllocatedStorage:     aws.Integer(d.Get("allocated_storage").(int)),
 		DBInstanceClass:      aws.String(d.Get("instance_class").(string)),
@@ -201,6 +205,7 @@ func resourceAwsDbInstanceCreate(d *schema.ResourceData, meta interface{}) error
 		Engine:               aws.String(d.Get("engine").(string)),
 		EngineVersion:        aws.String(d.Get("engine_version").(string)),
 		StorageEncrypted:     aws.Boolean(d.Get("storage_encrypted").(bool)),
+		Tags:                 tags,
 	}
 
 	if attr, ok := d.GetOk("storage_type"); ok {
@@ -328,6 +333,28 @@ func resourceAwsDbInstanceRead(d *schema.ResourceData, meta interface{}) error {
 	d.Set("status", *v.DBInstanceStatus)
 	d.Set("storage_encrypted", *v.StorageEncrypted)
 
+	// list tags for resource
+	// set tags
+	conn := meta.(*AWSClient).rdsconn
+	arn, err := buildRDSARN(d, meta)
+	if err != nil {
+		log.Printf("[DEBUG] Error building ARN for DB Instance, not setting Tags for DB %s", *v.DBName)
+	} else {
+		resp, err := conn.ListTagsForResource(&rds.ListTagsForResourceMessage{
+			ResourceName: aws.String(arn),
+		})
+
+		if err != nil {
+			log.Print("[DEBUG] Error retreiving tags for ARN: %s", arn)
+		}
+
+		var dt []rds.Tag
+		if len(resp.TagList) > 0 {
+			dt = resp.TagList
+		}
+		d.Set("tags", tagsToMapRDS(dt))
+	}
+
 	// Create an empty schema.Set to hold all vpc security group ids
 	ids := &schema.Set{
 		F: func(v interface{}) int {
@@ -390,6 +417,21 @@ func resourceAwsDbInstanceDelete(d *schema.ResourceData, meta interface{}) error
 	return nil
 }
 
+func resourceAwsDbInstanceUpdate(d *schema.ResourceData, meta interface{}) error {
+	conn := meta.(*AWSClient).rdsconn
+
+	d.Partial(true)
+	if arn, err := buildRDSARN(d, meta); err != nil {
+		if err := setTagsRDS(conn, d, arn); err != nil {
+			return err
+		} else {
+			d.SetPartial("tags")
+		}
+	}
+	d.Partial(false)
+	return resourceAwsDbInstanceRead(d, meta)
+}
+
 func resourceAwsBbInstanceRetrieve(
 	d *schema.ResourceData, meta interface{}) (*rds.DBInstance, error) {
 	conn := meta.(*AWSClient).rdsconn
@@ -439,3 +481,16 @@ func resourceAwsDbInstanceStateRefreshFunc(
 		return v, *v.DBInstanceStatus, nil
 	}
 }
+
+func buildRDSARN(d *schema.ResourceData, meta interface{}) (string, error) {
+	iamconn := meta.(*AWSClient).iamconn
+	region := meta.(*AWSClient).region
+	// An zero value GetUserRequest{} defers to the currently logged in user
+	resp, err := iamconn.GetUser(&iam.GetUserRequest{})
+	if err != nil {
+		return "", err
+	}
+	user := resp.User
+	arn := fmt.Sprintf("arn:aws:rds:%s:%s:db:%s", region, *user.UserID, d.Id())
+	return arn, nil
+}
diff --git a/builtin/providers/aws/tagsRDS.go b/builtin/providers/aws/tagsRDS.go
new file mode 100644
index 000000000..0677c2320
--- /dev/null
+++ b/builtin/providers/aws/tagsRDS.go
@@ -0,0 +1,94 @@
+package aws
+
+import (
+	"log"
+
+	"github.com/hashicorp/aws-sdk-go/aws"
+	"github.com/hashicorp/aws-sdk-go/gen/rds"
+	"github.com/hashicorp/terraform/helper/schema"
+)
+
+// setTags is a helper to set the tags for a resource. It expects the
+// tags field to be named "tags"
+func setTagsRDS(conn *rds.RDS, d *schema.ResourceData, arn string) error {
+	if d.HasChange("tags") {
+		oraw, nraw := d.GetChange("tags")
+		o := oraw.(map[string]interface{})
+		n := nraw.(map[string]interface{})
+		create, remove := diffTagsRDS(tagsFromMapRDS(o), tagsFromMapRDS(n))
+
+		// Set tags
+		if len(remove) > 0 {
+			log.Printf("[DEBUG] Removing tags: %#v", remove)
+			k := make([]string, 0, len(remove))
+			for i, t := range remove {
+				k[i] = *t.Key
+			}
+			err := conn.RemoveTagsFromResource(&rds.RemoveTagsFromResourceMessage{
+				ResourceName: aws.String(d.Get("name").(string)),
+				TagKeys:      k,
+			})
+			if err != nil {
+				return err
+			}
+		}
+		if len(create) > 0 {
+			log.Printf("[DEBUG] Creating tags: %#v", create)
+			err := conn.AddTagsToResource(&rds.AddTagsToResourceMessage{
+				ResourceName: aws.String(arn),
+				Tags:         create,
+			})
+			if err != nil {
+				return err
+			}
+		}
+	}
+
+	return nil
+}
+
+// diffTags takes our tags locally and the ones remotely and returns
+// the set of tags that must be created, and the set of tags that must
+// be destroyed.
+func diffTagsRDS(oldTags, newTags []rds.Tag) ([]rds.Tag, []rds.Tag) {
+	// First, we're creating everything we have
+	create := make(map[string]interface{})
+	for _, t := range newTags {
+		create[*t.Key] = *t.Value
+	}
+
+	// Build the list of what to remove
+	var remove []rds.Tag
+	for _, t := range oldTags {
+		old, ok := create[*t.Key]
+		if !ok || old != *t.Value {
+			// Delete it!
+			remove = append(remove, t)
+		}
+	}
+
+	return tagsFromMapRDS(create), remove
+}
+
+// tagsFromMap returns the tags for the given map of data.
+func tagsFromMapRDS(m map[string]interface{}) []rds.Tag {
+	result := make([]rds.Tag, 0, len(m))
+	for k, v := range m {
+		result = append(result, rds.Tag{
+			Key:   aws.String(k),
+			Value: aws.String(v.(string)),
+		})
+	}
+
+	return result
+}
+
+// tagsToMap turns the list of tags into a map.
+func tagsToMapRDS(ts []rds.Tag) map[string]string {
+	result := make(map[string]string)
+	for _, t := range ts {
+		result[*t.Key] = *t.Value
+	}
+
+	return result
+}
diff --git a/builtin/providers/aws/tagsRDS_test.go b/builtin/providers/aws/tagsRDS_test.go
new file mode 100644
index 000000000..1d9da8357
--- /dev/null
+++ b/builtin/providers/aws/tagsRDS_test.go
@@ -0,0 +1,85 @@
+package aws
+
+import (
+	"fmt"
+	"reflect"
+	"testing"
+
+	"github.com/hashicorp/aws-sdk-go/gen/rds"
+	"github.com/hashicorp/terraform/helper/resource"
+	"github.com/hashicorp/terraform/terraform"
+)
+
+func TestDiffRDSTags(t *testing.T) {
+	cases := []struct {
+		Old, New       map[string]interface{}
+		Create, Remove map[string]string
+	}{
+		// Basic add/remove
+		{
+			Old: map[string]interface{}{
+				"foo": "bar",
+			},
+			New: map[string]interface{}{
+				"bar": "baz",
+			},
+			Create: map[string]string{
+				"bar": "baz",
+			},
+			Remove: map[string]string{
+				"foo": "bar",
+			},
+		},
+
+		// Modify
+		{
+			Old: map[string]interface{}{
+				"foo": "bar",
+			},
+			New: map[string]interface{}{
+				"foo": "baz",
+			},
+			Create: map[string]string{
+				"foo": "baz",
+			},
+			Remove: map[string]string{
+				"foo": "bar",
+			},
+		},
+	}
+
+	for i, tc := range cases {
+		c, r := diffTagsRDS(tagsFromMapRDS(tc.Old), tagsFromMapRDS(tc.New))
+		cm := tagsToMapRDS(c)
+		rm := tagsToMapRDS(r)
+		if !reflect.DeepEqual(cm, tc.Create) {
+			t.Fatalf("%d: bad create: %#v", i, cm)
+		}
+		if !reflect.DeepEqual(rm, tc.Remove) {
+			t.Fatalf("%d: bad remove: %#v", i, rm)
+		}
+	}
+}
+
+// testAccCheckTags can be used to check the tags on a resource.
+func testAccCheckRDSTags(
+	ts *[]rds.Tag, key string, value string) resource.TestCheckFunc {
+	return func(s *terraform.State) error {
+		m := tagsToMapRDS(*ts)
+		v, ok := m[key]
+		if value != "" && !ok {
+			return fmt.Errorf("Missing tag: %s", key)
+		} else if value == "" && ok {
+			return fmt.Errorf("Extra tag: %s", key)
+		}
+		if value == "" {
+			return nil
+		}
+
+		if v != value {
+			return fmt.Errorf("%s: bad value: %s", key, v)
+		}
+
+		return nil
+	}
+}