diff --git a/CHANGELOG.md b/CHANGELOG.md
index 045fc395d..800d6730e 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -33,6 +33,7 @@ and this project adheres to [Semantic Versioning](https://semver.org/spec/v2.0.0
 - Fixed an issue where the dividends, the interest and the liabilities of asset profiles without market data have been valued at zero in the portfolio calculation
 - Fixed an issue where an error has been reported for asset profiles without market data which do not hold any units
 - Fixed an issue with removing a linked account from a buy, sell or dividend activity
+- Fixed the hover styling of the tags selector component
 
 ## 3.27.0 - 2026-07-15
 
diff --git a/libs/ui/src/lib/tags-selector/tags-selector.component.html b/libs/ui/src/lib/tags-selector/tags-selector.component.html
index f019753fb..4f9d82ae9 100644
--- a/libs/ui/src/lib/tags-selector/tags-selector.component.html
+++ b/libs/ui/src/lib/tags-selector/tags-selector.component.html
@@ -34,11 +34,9 @@
           @for (tag of tagsSelected(); track tag.id) {
             <mat-chip-row [removable]="true" (removed)="onRemoveTag(tag)">
               {{ tag.name }}
-              <ion-icon
-                matChipRemove
-                matChipTrailingIcon
-                name="close-outline"
-              />
+              <button matChipRemove type="button">
+                <ion-icon name="close-outline" />
+              </button>
             </mat-chip-row>
           }
           <input