diff --git a/hscontrol/db/users.go b/hscontrol/db/users.go
index 36ea50e5..b9e6bb3f 100644
--- a/hscontrol/db/users.go
+++ b/hscontrol/db/users.go
@@ -48,7 +48,8 @@ func (hsdb *HSDatabase) DestroyUser(uid types.UserID) error {
 }
 
 // DestroyUser destroys a User. Returns error if the User does
-// not exist or if there are nodes associated with it.
+// not exist or if there are user-owned nodes associated with it.
+// Tagged nodes have user_id = NULL so they do not block deletion.
 func DestroyUser(tx *gorm.DB, uid types.UserID) error {
 	user, err := GetUserByID(tx, uid)
 	if err != nil {
diff --git a/hscontrol/state/node_store.go b/hscontrol/state/node_store.go
index 1c921d6d..460808c1 100644
--- a/hscontrol/state/node_store.go
+++ b/hscontrol/state/node_store.go
@@ -425,7 +425,12 @@ func snapshotFromNodes(nodes map[types.NodeID]types.Node, peersFunc PeersFunc) S
 		nodeView := n.View()
 		userID := n.TypedUserID()
 
-		newSnap.nodesByUser[userID] = append(newSnap.nodesByUser[userID], nodeView)
+		// Tagged nodes are owned by their tags, not a user,
+		// so they are not indexed by user.
+		if !n.IsTagged() {
+			newSnap.nodesByUser[userID] = append(newSnap.nodesByUser[userID], nodeView)
+		}
+
 		newSnap.nodesByNodeKey[n.NodeKey] = nodeView
 
 		// Build machine key index
@@ -531,23 +536,12 @@ func (s *NodeStore) DebugString() string {
 	for userID, nodes := range snapshot.nodesByUser {
 		if len(nodes) > 0 {
 			userName := "unknown"
-			taggedCount := 0
 
-			if len(nodes) > 0 && nodes[0].Valid() {
+			if nodes[0].Valid() && nodes[0].User().Valid() {
 				userName = nodes[0].User().Name()
-				// Count tagged nodes (which have UserID set but are owned by "tagged-devices")
-				for _, n := range nodes {
-					if n.IsTagged() {
-						taggedCount++
-					}
-				}
 			}
 
-			if taggedCount > 0 {
-				sb.WriteString(fmt.Sprintf("  - User %d (%s): %d nodes (%d tagged)\n", userID, userName, len(nodes), taggedCount))
-			} else {
-				sb.WriteString(fmt.Sprintf("  - User %d (%s): %d nodes\n", userID, userName, len(nodes)))
-			}
+			sb.WriteString(fmt.Sprintf("  - User %d (%s): %d nodes\n", userID, userName, len(nodes)))
 		}
 	}
 
diff --git a/hscontrol/state/state.go b/hscontrol/state/state.go
index 35544aa3..44d68526 100644
--- a/hscontrol/state/state.go
+++ b/hscontrol/state/state.go
@@ -472,10 +472,9 @@ func (s *State) DeleteNode(node types.NodeView) (change.Change, error) {
 
 // Connect marks a node as connected and updates its primary routes in the state.
 func (s *State) Connect(id types.NodeID) []change.Change {
-	// CRITICAL FIX: Update the online status in NodeStore BEFORE creating change notification
-	// This ensures that when the NodeCameOnline change is distributed and processed by other nodes,
-	// the NodeStore already reflects the correct online status for full map generation.
-	// now := time.Now()
+	// Update online status in NodeStore before creating change notification
+	// so the NodeStore already reflects the correct state when other nodes
+	// process the NodeCameOnline change for full map generation.
 	node, ok := s.nodeStore.UpdateNode(id, func(n *types.Node) {
 		n.IsOnline = new(true)
 		// n.LastSeen = ptr.To(now)
@@ -488,9 +487,8 @@ func (s *State) Connect(id types.NodeID) []change.Change {
 
 	log.Info().EmbedObject(node).Msg("node connected")
 
-	// Use the node's current routes for primary route update
-	// AllApprovedRoutes() returns only the intersection of announced AND approved routes
-	// We MUST use AllApprovedRoutes() to maintain the security model
+	// Use the node's current routes for primary route update.
+	// AllApprovedRoutes() returns only the intersection of announced and approved routes.
 	routeChange := s.primaryRoutes.SetRoutes(id, node.AllApprovedRoutes()...)
 
 	if routeChange {
@@ -674,9 +672,8 @@ func (s *State) SetNodeExpiry(nodeID types.NodeID, expiry *time.Time) (types.Nod
 
 // SetNodeTags assigns tags to a node, making it a "tagged node".
 // Once a node is tagged, it cannot be un-tagged (only tags can be changed).
-// The UserID is preserved as "created by" information.
+// Setting tags clears UserID since tagged nodes are owned by their tags.
 func (s *State) SetNodeTags(nodeID types.NodeID, tags []string) (types.NodeView, change.Change, error) {
-	// CANNOT REMOVE ALL TAGS
 	if len(tags) == 0 {
 		return types.NodeView{}, change.Change{}, types.ErrCannotRemoveAllTags
 	}
@@ -716,7 +713,9 @@ func (s *State) SetNodeTags(nodeID types.NodeID, tags []string) (types.NodeView,
 	// make the exact same change.
 	n, ok := s.nodeStore.UpdateNode(nodeID, func(node *types.Node) {
 		node.Tags = validatedTags
-		// UserID is preserved as "created by" - do NOT set to nil
+		// Tagged nodes are owned by their tags, not a user.
+		node.UserID = nil
+		node.User = nil
 	})
 
 	if !ok {
@@ -1307,17 +1306,10 @@ func (s *State) createAndSaveNewNode(params newNodeParams) (types.NodeView, erro
 	// Assign ownership based on PreAuthKey
 	if params.PreAuthKey != nil {
 		if params.PreAuthKey.IsTagged() {
-			// TAGGED NODE
-			// Tags from PreAuthKey are assigned ONLY during initial authentication
+			// Tagged nodes are owned by their tags, not a user.
+			// UserID is intentionally left nil.
 			nodeToRegister.Tags = params.PreAuthKey.Proto().GetAclTags()
 
-			// Set UserID to track "created by" (who created the PreAuthKey)
-			if params.PreAuthKey.UserID != nil {
-				nodeToRegister.UserID = params.PreAuthKey.UserID
-				nodeToRegister.User = params.PreAuthKey.User
-			}
-			// If PreAuthKey.UserID is nil, the node is "orphaned" (system-created)
-
 			// Tagged nodes have key expiry disabled.
 			nodeToRegister.Expiry = nil
 		} else {
@@ -1358,6 +1350,11 @@ func (s *State) createAndSaveNewNode(params newNodeParams) (types.NodeView, erro
 			slices.Sort(nodeToRegister.Tags)
 			nodeToRegister.Tags = slices.Compact(nodeToRegister.Tags)
 
+			// Node is now tagged, so clear user ownership.
+			// Tagged nodes are owned by their tags, not a user.
+			nodeToRegister.UserID = nil
+			nodeToRegister.User = nil
+
 			// Tagged nodes have key expiry disabled.
 			nodeToRegister.Expiry = nil
 
@@ -1504,7 +1501,10 @@ func (s *State) processReauthTags(
 		wasTagged := node.IsTagged()
 		node.Tags = approvedTags
 
-		// Note: UserID is preserved as "created by" tracking, consistent with SetNodeTags
+		// Tagged nodes are owned by their tags, not a user.
+		node.UserID = nil
+		node.User = nil
+
 		if !wasTagged {
 			log.Info().
 				Uint64(zf.NodeID, uint64(node.ID)).
@@ -1729,9 +1729,15 @@ func (s *State) HandleNodeFromPreAuthKey(
 		existingNodeSameUser, existsSameUser = s.nodeStore.GetNodeByMachineKey(machineKey, types.UserID(pak.User.ID))
 	}
 
+	// Tagged nodes have nil UserID, so they are indexed under UserID(0)
+	// in nodesByMachineKey. Check there too for tagged PAK re-registration.
+	if !existsSameUser && pak.IsTagged() {
+		existingNodeSameUser, existsSameUser = s.nodeStore.GetNodeByMachineKey(machineKey, 0)
+	}
+
 	// For existing nodes, skip validation if:
 	// 1. MachineKey matches (cryptographic proof of machine identity)
-	// 2. User matches (from the PAK being used)
+	// 2. User/tag ownership matches (from the PAK being used)
 	// 3. Not a NodeKey rotation (rotation requires fresh validation)
 	//
 	// Security: MachineKey is the cryptographic identity. If someone has the MachineKey,
@@ -1739,9 +1745,7 @@ func (s *State) HandleNodeFromPreAuthKey(
 	// We don't check which specific PAK was used originally because:
 	// - Container restarts may use different PAKs (e.g., env var changed)
 	// - Original PAK may be deleted
-	// - MachineKey + User is sufficient to prove this is the same node
-	//
-	// Note: For tags-only keys, existsSameUser is always false, so we always validate.
+	// - MachineKey + ownership is sufficient to prove this is the same node
 	isExistingNodeReregistering := existsSameUser && existingNodeSameUser.Valid()
 
 	// Check if this is a NodeKey rotation (different NodeKey)
@@ -1828,11 +1832,9 @@ func (s *State) HandleNodeFromPreAuthKey(
 
 			node.RegisterMethod = util.RegisterMethodAuthKey
 
-			// CRITICAL: Tags from PreAuthKey are ONLY applied during initial authentication
-			// On re-registration, we MUST NOT change tags or node ownership
-			// The node keeps whatever tags/user ownership it already has
-			//
-			// Only update AuthKey reference
+			// Tags from PreAuthKey are only applied during initial registration.
+			// On re-registration the node keeps its existing tags and ownership.
+			// Only update AuthKey reference.
 			node.AuthKey = pak
 			node.AuthKeyID = &pak.ID
 			node.IsOnline = new(false)
@@ -1885,19 +1887,27 @@ func (s *State) HandleNodeFromPreAuthKey(
 		// Check if node exists with this machine key for a different user
 		existingNodeAnyUser, existsAnyUser := s.nodeStore.GetNodeByMachineKeyAnyUser(machineKey)
 
-		// For user-owned keys, check if node exists for a different user
-		// For tags-only keys (pak.User == nil), this check is skipped
-		if pak.User != nil && existsAnyUser && existingNodeAnyUser.Valid() && existingNodeAnyUser.UserID().Get() != pak.User.ID {
-			// Node exists but belongs to a different user
-			// Create a NEW node for the new user (do not transfer)
-			// This allows the same machine to have separate node identities per user
-			oldUser := existingNodeAnyUser.User()
+		// For user-owned keys, check if node exists for a different user.
+		// Tags-only keys (pak.User == nil) skip this check.
+		// Tagged nodes are also skipped since they have no owning user.
+		existingIsUserOwned := existsAnyUser &&
+			existingNodeAnyUser.Valid() &&
+			!existingNodeAnyUser.IsTagged()
+		belongsToDifferentUser := pak.User != nil &&
+			existingIsUserOwned &&
+			existingNodeAnyUser.UserID().Get() != pak.User.ID
+
+		if belongsToDifferentUser {
+			// Node exists but belongs to a different user.
+			// Create a new node for the new user (do not transfer).
+			oldUserName := existingNodeAnyUser.User().Name()
+
 			log.Info().
 				Caller().
 				Str(zf.ExistingNodeName, existingNodeAnyUser.Hostname()).
 				Uint64(zf.ExistingNodeID, existingNodeAnyUser.ID().Uint64()).
 				Str(zf.MachineKey, machineKey.ShortString()).
-				Str(zf.OldUser, oldUser.Name()).
+				Str(zf.OldUser, oldUserName).
 				Str(zf.NewUser, pakUsername()).
 				Msg("Creating new node for different user (same machine key exists for another user)")
 		}
diff --git a/hscontrol/state/tags.go b/hscontrol/state/tags.go
index 56dff16e..fbc05d9b 100644
--- a/hscontrol/state/tags.go
+++ b/hscontrol/state/tags.go
@@ -20,22 +20,26 @@ var (
 	ErrRequestedTagsInvalidOrNotPermitted = errors.New("requested tags")
 )
 
-// validateNodeOwnership ensures proper node ownership model.
-// A node must be EITHER user-owned OR tagged (mutually exclusive by behavior).
-// Tagged nodes CAN have a UserID for "created by" tracking, but the tag is the owner.
-func validateNodeOwnership(node *types.Node) error {
-	isTagged := node.IsTagged()
+// ErrTaggedNodeHasUser is returned when a tagged node has a UserID set.
+var ErrTaggedNodeHasUser = errors.New("tagged node must not have user_id set")
 
-	// Tagged nodes: Must have tags, UserID is optional (just "created by")
-	if isTagged {
+// validateNodeOwnership ensures proper node ownership model.
+// A node must be either user-owned or tagged, and these are mutually exclusive:
+// tagged nodes must not have a UserID, and user-owned nodes must not have tags.
+func validateNodeOwnership(node *types.Node) error {
+	if node.IsTagged() {
 		if len(node.Tags) == 0 {
 			return fmt.Errorf("%w: %q", ErrNodeMarkedTaggedButHasNoTags, node.Hostname)
 		}
-		// UserID can be set (created by) or nil (orphaned), both valid for tagged nodes
+
+		if node.UserID != nil {
+			return fmt.Errorf("%w: %q", ErrTaggedNodeHasUser, node.Hostname)
+		}
+
 		return nil
 	}
 
-	// User-owned nodes: Must have UserID, must NOT have tags
+	// User-owned nodes must have a UserID.
 	if node.UserID == nil {
 		return fmt.Errorf("%w: %q", ErrNodeHasNeitherUserNorTags, node.Hostname)
 	}
@@ -59,7 +63,7 @@ func logTagOperation(existingNode types.NodeView, newTags []string) {
 
 		log.Info().
 			EmbedObject(existingNode).
-			Uint("created.by.user", userID).
+			Uint("previous.user", userID).
 			Strs("new.tags", newTags).
 			Msg("Converting user-owned node to tagged node")
 	}
diff --git a/hscontrol/types/node.go b/hscontrol/types/node.go
index e705a33a..05b27c19 100644
--- a/hscontrol/types/node.go
+++ b/hscontrol/types/node.go
@@ -105,10 +105,8 @@ type Node struct {
 	// parts of headscale.
 	GivenName string `gorm:"type:varchar(63);unique_index"`
 
-	// UserID is set for ALL nodes (tagged and user-owned) to track "created by".
-	// For tagged nodes, this is informational only - the tag is the owner.
-	// For user-owned nodes, this identifies the owner.
-	// Only nil for orphaned nodes (should not happen in normal operation).
+	// UserID identifies the owning user for user-owned nodes.
+	// Nil for tagged nodes, which are owned by their tags.
 	UserID *uint
 	User   *User `gorm:"constraint:OnDelete:CASCADE;"`