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March 5, 2025

AWS Cost Allocation Tags: The Complete Guide

7 min read

Cost allocation tags let you break down AWS spend by team, project, environment, or any dimension you choose. But inconsistent tagging makes this impossible.

We've seen teams with 20+ tag variations for the same concept, making cost allocation a nightmare.

Our tagging standard

  • Team: Always use lowercase, e.g., "backend", "data-science", "platform".
  • Environment: Use "prod", "staging", "dev" consistently.
  • Project: Use project codes or names, e.g., "mobile-app", "api-v2".
  • CostCenter: Map to your finance system's cost centers.

Sonar validates tags and suggests fixes when it detects inconsistencies, ensuring clean cost allocation from day one.