diff --git a/README.md b/README.md
index 03bc64a..9d3bc00 100644
--- a/README.md
+++ b/README.md
@@ -44,6 +44,36 @@ uv run pytest
 
 If all is well, you should see the test run in the Test Engine section of the Buildkite dashboard.
 
+## 🏷️ Filtering Tests by Tags
+
+You can filter which tests to run based on execution tags using the `--tag-filters` option.
+
+First, mark your tests with execution tags:
+
+```python
+import pytest
+
+@pytest.mark.execution_tag("color", "red")
+def test_red_feature():
+    assert True
+
+@pytest.mark.execution_tag("color", "blue")
+def test_blue_feature():
+    assert True
+```
+
+Then filter tests by tag using the `--tag-filters` option with `key:value` format:
+
+```sh
+# Run only tests tagged with color:red
+pytest --tag-filters "color:red"
+
+# Run only tests tagged with color:blue
+pytest --tag-filters "color:blue"
+```
+
+**Note:** The `--tag-filters` option performs exact key:value matching. Only tests with the specified tag will be selected.
+
 ## 🎢 Tracing
 
 Buildkite Test Engine has support for tracing potentially slow operations within your tests, and can collect span data of [four types](https://buildkite.com/docs/test-engine/importing-json#json-test-results-data-reference-span-objects): http, sql, sleep and annotations. This is documented as part of our public JSON API so anyone can instrument any code to send this data.
diff --git a/pyproject.toml b/pyproject.toml
index 0e4b4b1..c6076c3 100644
--- a/pyproject.toml
+++ b/pyproject.toml
@@ -4,7 +4,7 @@ build-backend = "hatchling.build"
 
 [project]
 name = "buildkite-test-collector"
-version = "1.2.0"
+version = "1.3.0"
 description = "Buildkite Test Engine collector"
 readme = "README.md"
 requires-python = ">=3.9"
diff --git a/uv.lock b/uv.lock
index a0c1b19..ba03aad 100644
--- a/uv.lock
+++ b/uv.lock
@@ -46,7 +46,7 @@ wheels = [
 
 [[package]]
 name = "buildkite-test-collector"
-version = "1.1.0"
+version = "1.3.0"
 source = { editable = "." }
 dependencies = [
     { name = "filelock" },