diff --git a/CHANGELOG.md b/CHANGELOG.md
index c1c77bd..a25035f 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -7,6 +7,58 @@ and this project adheres to [Semantic Versioning](https://semver.org/spec/v2.0.0
 
 ## [Unreleased]
 
+## [1.3.0-rc.1] - 2025-12-10
+
+### Added
+
+- **Tag/Category System** - Complete tag support with hierarchical organization
+  - Tag creation and management via web UI and Micropub
+  - Support for Micropub `category` property in JSON and form-encoded requests
+  - Tag archive pages at `/tags/{tag}` with all tagged notes
+  - Tag cloud display on homepage showing all used tags
+  - Tag filtering in database queries (list_notes_by_tag)
+  - Reserved tag validation (prevents tags like 'api', 'admin', etc.)
+  - Comprehensive tag management in admin dashboard
+  - Database schema: tags table with slug and name fields
+  - Many-to-many relationship between notes and tags
+  - Automatic tag cleanup (removes orphaned tags)
+
+- **Strict Microformats2 Compliance** - Enhanced h-entry markup for parsers
+  - p-category property for each tag in note markup
+  - dt-updated property displays when note is modified
+  - dt-published always shown for temporal context
+  - u-uid property matches u-url for permalink stability
+  - Proper h-feed structure on homepage and tag archives
+  - p-name property only when note has explicit title (# heading)
+  - e-content wraps full note content
+  - Nested h-card for author within each h-entry
+  - Homepage displays as complete h-feed with feed properties
+
+- **h-feed Properties** - Proper feed markup on collection pages
+  - Homepage marked as h-feed with p-name "Recent Notes"
+  - Tag archive pages marked as h-feed with descriptive p-name
+  - Each feed contains multiple h-entry items
+  - Feed structure validates with Microformats2 parsers
+  - Supports feed readers and IndieWeb aggregators
+
+### Changed
+
+- **Template Structure** - Reorganized for better Microformats2 compliance
+  - Homepage template now wraps entries in proper h-feed
+  - Note display templates use semantic h-entry markup
+  - Tag display integrated throughout note views
+  - Consistent Microformats2 patterns across all pages
+
+### Technical Details
+
+- Migration 006: Add tags table and note_tags junction table
+- New module: `starpunk/tags.py` with tag CRUD operations
+- Enhanced: `starpunk/notes.py` with tag relationship handling
+- Enhanced: `starpunk/micropub.py` with category property support
+- Enhanced: Templates with p-category and h-feed markup
+- All tests passing (580+ tests)
+- 100% backward compatible with existing notes
+
 ## [1.2.0] - 2025-12-09
 
 ### Added
diff --git a/starpunk/__init__.py b/starpunk/__init__.py
index 2ea04b8..6d411d6 100644
--- a/starpunk/__init__.py
+++ b/starpunk/__init__.py
@@ -325,5 +325,5 @@ def create_app(config=None):
 
 # Package version (Semantic Versioning 2.0.0)
 # See docs/standards/versioning-strategy.md for details
-__version__ = "1.2.0"
-__version_info__ = (1, 2, 0)
+__version__ = "1.3.0rc1"
+__version_info__ = (1, 3, 0, "rc", 1)