Delete Tags in your account from the Tags page. When a tag is deleted it is removed from any person it's applied to.
To delete a tag from your account:
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Go to People > Tags
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Locate the tag you'd like to delete
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Click the three dots next to the Edit pencil
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Click Delete
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Click I'm sure, delete this tag
If you add the same Tag name to your account, it will not reapply it to the people that had it before it was deleted. This will not delete a tag from any Automations, only from your people's profiles.