diff --git a/packages/styles/scss/components/tag/_tag.scss b/packages/styles/scss/components/tag/_tag.scss
index 3764b1c402eb..76067bf0e0eb 100644
--- a/packages/styles/scss/components/tag/_tag.scss
+++ b/packages/styles/scss/components/tag/_tag.scss
@@ -117,7 +117,7 @@
   .#{$prefix}--tag--outline {
     @include tag-theme($background, $text-primary, $layer-hover);
 
-    box-shadow: inset 0 0 0 1px $background-inverse;
+    box-shadow: 0 0 0 1px $background-inverse;
   }
 
   .#{$prefix}--tag--disabled,
@@ -125,6 +125,8 @@
   .#{$prefix}--tag--interactive.#{$prefix}--tag--disabled {
     @include tag-theme($layer, $text-disabled);
 
+    box-shadow: none;
+
     &:hover {
       cursor: not-allowed;
     }