diff --git a/src/libs/PolicyUtils.ts b/src/libs/PolicyUtils.ts
index 389de5f2dc3c..7468fb9a3679 100644
--- a/src/libs/PolicyUtils.ts
+++ b/src/libs/PolicyUtils.ts
@@ -292,7 +292,7 @@ function getTagList(policyTagList: OnyxEntry<PolicyTagList>, tagIndex: number):
  * Cleans up escaping of colons (used to create multi-level tags, e.g. "Parent: Child") in the tag name we receive from the backend
  */
 function getCleanedTagName(tag: string) {
-    return tag?.replace(/\\{1,2}:/g, CONST.COLON);
+    return tag?.replace(/\\:/g, CONST.COLON);
 }
 
 /**
diff --git a/src/pages/workspace/tags/WorkspaceCreateTagPage.tsx b/src/pages/workspace/tags/WorkspaceCreateTagPage.tsx
index 1214507480ae..b79863e32245 100644
--- a/src/pages/workspace/tags/WorkspaceCreateTagPage.tsx
+++ b/src/pages/workspace/tags/WorkspaceCreateTagPage.tsx
@@ -40,7 +40,7 @@ function CreateTagPage({route, policyTags}: CreateTagPageProps) {
     const validate = useCallback(
         (values: FormOnyxValues<typeof ONYXKEYS.FORMS.WORKSPACE_TAG_FORM>) => {
             const errors: FormInputErrors<typeof ONYXKEYS.FORMS.WORKSPACE_TAG_FORM> = {};
-            const tagName = values.tagName.trim();
+            const tagName = PolicyUtils.escapeTagName(values.tagName.trim());
             const {tags} = PolicyUtils.getTagList(policyTags, 0);
 
             if (!ValidationUtils.isRequiredFulfilled(tagName)) {