diff --git a/app/controllers/projects/tags_controller.rb b/app/controllers/projects/tags_controller.rb
index 0b99165bf6201eb6b7aa52d03a167afa7e2a9ec0..e03a9f4d66d0802b5f14f16953bf8b3c0aaf1f07 100644
--- a/app/controllers/projects/tags_controller.rb
+++ b/app/controllers/projects/tags_controller.rb
@@ -13,11 +13,8 @@ class Projects::TagsController < Projects::ApplicationController
   end
 
   def create
-    @repository.add_tag(params[:tag_name], params[:ref])
-
-    if new_tag = @repository.find_tag(params[:tag_name])
-      Event.create_ref_event(@project, current_user, new_tag, 'add', 'refs/tags')
-    end
+    @tag = CreateTagService.new.execute(@project, params[:tag_name],
+                                        params[:ref], current_user)
 
     redirect_to project_tags_path(@project)
   end
diff --git a/app/services/create_tag_service.rb b/app/services/create_tag_service.rb
new file mode 100644
index 0000000000000000000000000000000000000000..9776667740529278503fcd9b375bd95fe93ae775
--- /dev/null
+++ b/app/services/create_tag_service.rb
@@ -0,0 +1,13 @@
+class CreateTagService
+  def execute(project, tag_name, ref, current_user)
+    repository = project.repository
+    repository.add_tag(tag_name, ref)
+    new_tag = repository.find_tag(tag_name)
+
+    if new_tag
+      Event.create_ref_event(project, current_user, new_tag, 'add', 'refs/tags')
+    end
+
+    new_tag
+  end
+end
diff --git a/doc/api/repositories.md b/doc/api/repositories.md
index ecb0fa3f6a0d1e873db488388dd510398d1bbee7..26ae3e8723288c0a81ca069d302317def2e2e987 100644
--- a/doc/api/repositories.md
+++ b/doc/api/repositories.md
@@ -37,6 +37,40 @@ Parameters:
 ]
 ```
 
+## Create a new tag
+
+Creates new tag in the repository that points to the supplied ref.
+
+```
+POST /projects/:id/repository/tags
+```
+
+Parameters:
+
++ `id` (required) - The ID of a project
++ `tag_name` (required) - The name of a tag
++ `ref` (required) - Create tag using commit sha, another tag name, or branch name.
+
+```json
+[
+  {
+    "name": "v1.0.0",
+    "commit": {
+      "id": "2695effb5807a22ff3d138d593fd856244e155e7",
+      "parents": [],
+      "message": "Initial commit",
+      "authored_date": "2012-05-28T04:42:42-07:00",
+      "author_name": "John Smith",
+      "author email": "john@example.com",
+      "committer_name": "Jack Smith",
+      "committed_date": "2012-05-28T04:42:42-07:00",
+      "committer_email": "jack@example.com"
+    },
+    "protected": false
+  }
+]
+```
+
 ## List repository tree
 
 Get a list of repository files and directories in a project.
diff --git a/lib/api/repositories.rb b/lib/api/repositories.rb
index a587d4a7bdffa61295003a248fa74869022b1f06..03806d9343ba36075e4367deedfea88439717857 100644
--- a/lib/api/repositories.rb
+++ b/lib/api/repositories.rb
@@ -26,6 +26,22 @@ module API
         present user_project.repo.tags.sort_by(&:name).reverse, with: Entities::RepoObject, project: user_project
       end
 
+      # Create tag
+      #
+      # Parameters:
+      #   id (required) - The ID of a project
+      #   tag_name (required) - The name of the tag
+      #   ref (required) - Create tag from commit sha or branch
+      # Example Request:
+      #   POST /projects/:id/repository/tags
+      post ':id/repository/tags' do
+        authorize_push_project
+        @tag = CreateTagService.new.execute(user_project, params[:tag_name],
+                                            params[:ref], current_user)
+
+        present @tag, with: Entities::RepoObject, project: user_project
+      end
+
       # Get a project repository tree
       #
       # Parameters:
diff --git a/spec/requests/api/repositories_spec.rb b/spec/requests/api/repositories_spec.rb
index a902a1542ccf221382a920edd3b1ebc5201ca489..5afb3bddcb7a464e2d1b948a999ee94c1c680917 100644
--- a/spec/requests/api/repositories_spec.rb
+++ b/spec/requests/api/repositories_spec.rb
@@ -23,6 +23,24 @@ describe API::API, api: true  do
     end
   end
 
+  describe 'POST /projects/:id/repository/tags' do
+    it 'should create a new tag' do
+      post api("/projects/#{project.id}/repository/tags", user),
+           tag_name: 'v1.0.0',
+           ref: 'master'
+
+      response.status.should == 201
+      json_response['name'].should == 'v1.0.0'
+    end
+    it 'should deny for user without push access' do
+      post api("/projects/#{project.id}/repository/tags", user2),
+           tag_name: 'v1.0.0',
+           ref: '621491c677087aa243f165eab467bfdfbee00be1'
+
+      response.status.should == 403
+    end
+  end
+
   describe "GET /projects/:id/repository/tree" do
     context "authorized user" do
       before { project.team << [user2, :reporter] }