diff --git a/hledger-lib/Hledger/Data/Posting.hs b/hledger-lib/Hledger/Data/Posting.hs
index c89ba88d6..986b0fccd 100644
--- a/hledger-lib/Hledger/Data/Posting.hs
+++ b/hledger-lib/Hledger/Data/Posting.hs
@@ -147,9 +147,9 @@ postingCleared p = if pstatus p
 postingAllTags :: Posting -> [Tag]
 postingAllTags p = ptags p ++ maybe [] transactionAllTags (ptransaction p)
 
--- | Tags for this transaction including any inherited from above, when that is implemented.
+-- | Tags for this transaction including any from its postings.
 transactionAllTags :: Transaction -> [Tag]
-transactionAllTags t = ttags t
+transactionAllTags t = ttags t ++ concatMap ptags (tpostings t)
 
 -- Get the other postings from this posting's transaction.
 relatedPostings :: Posting -> [Posting]
diff --git a/hledger-lib/Hledger/Query.hs b/hledger-lib/Hledger/Query.hs
index 8ed2d0551..2f72ddf06 100644
--- a/hledger-lib/Hledger/Query.hs
+++ b/hledger-lib/Hledger/Query.hs
@@ -631,8 +631,8 @@ tests_matchesTransaction = [
    assertBool "" $ (Desc "x x") `matchesTransaction` nulltransaction{tdescription="x x"}
    -- see posting for more tag tests
    assertBool "" $ (Tag "foo" (Just "a")) `matchesTransaction` nulltransaction{ttags=[("foo","bar")]}
-   -- a tag match on a transaction usually ignores posting tags
-   assertBool "" $ not $ (Tag "postingtag" Nothing) `matchesTransaction` nulltransaction{tpostings=[nullposting{ptags=[("postingtag","")]}]}
+   -- a tag match on a transaction also matches posting tags
+   assertBool "" $ (Tag "postingtag" Nothing) `matchesTransaction` nulltransaction{tpostings=[nullposting{ptags=[("postingtag","")]}]}
  ]
 
 lookupTagByName :: String -> [Tag] -> Maybe Tag