diff --git a/README.md b/README.md
index 0d51db2..37f10f4 100644
--- a/README.md
+++ b/README.md
@@ -1,10 +1,15 @@
-# Todo API Application
+# Enhanced Todo API Application
 
-This is a simple Todo API application built with FastAPI and SQLite.
+This is an improved Todo API application built with FastAPI and SQLite, featuring advanced task management capabilities.
 
 ## Features
 
 - Create, Read, Update, and Delete todos
+- Todo prioritization (low, medium, high)
+- Due dates for deadline tracking
+- Tag/category support for organizing todos
+- Advanced search and filtering capabilities
+- Upcoming tasks view for planning
 - Health endpoint for monitoring application status
 - SQLite database for data persistence
 - Alembic for database migrations
@@ -20,7 +25,9 @@ simpletodoapplication/
 │   └── schemas.py
 ├── migrations/
 │   ├── versions/
-│   │   └── 001_create_todos_table.py
+│   │   ├── 001_create_todos_table.py
+│   │   ├── 002_add_priority_and_due_date.py
+│   │   └── 003_add_tags_table_and_associations.py
 │   ├── env.py
 │   ├── README
 │   └── script.py.mako
@@ -31,13 +38,35 @@ simpletodoapplication/
 
 ## API Endpoints
 
+### Health
 - `GET /health` - Check API health
-- `GET /todos` - Get all todos
+
+### Todo Management
+- `GET /todos` - Get all todos with optional filtering
 - `POST /todos` - Create a new todo
+- `POST /todos/with-tags` - Create a new todo with tags (creates tags if they don't exist)
 - `GET /todos/{todo_id}` - Get a specific todo
 - `PUT /todos/{todo_id}` - Update a todo
 - `DELETE /todos/{todo_id}` - Delete a todo
 
+### Search & Filtering
+- `GET /todos/search` - Search todos by title, description, or tag
+- `GET /todos/upcoming` - Get todos due in the next N days (defaults to 7)
+- `GET /todos` - With query parameters for advanced filtering:
+  - `title` - Filter by title (partial match)
+  - `description` - Filter by description (partial match)
+  - `completed` - Filter by completion status
+  - `priority` - Filter by priority level
+  - `tag` - Filter by tag name
+  - `due_before` - Filter todos due before a specific date
+  - `due_after` - Filter todos due after a specific date
+  - `overdue` - Filter overdue todos
+
+### Tag Management
+- `GET /tags` - Get all tags
+- `POST /tags` - Create a new tag
+- `GET /tags/{tag_id}` - Get a specific tag
+
 ## Requirements
 
 - Python 3.8+
diff --git a/app/models.py b/app/models.py
index 4fd4fab..160756f 100644
--- a/app/models.py
+++ b/app/models.py
@@ -1,8 +1,33 @@
-from sqlalchemy import Boolean, Column, Integer, String, Text, DateTime
+from sqlalchemy import Boolean, Column, Integer, String, Text, DateTime, Enum, Table, ForeignKey
+from sqlalchemy.orm import relationship
 from sqlalchemy.sql import func
+import enum
 
 from .database import Base
 
+# Association table for the many-to-many relationship between Todo and Tag
+todo_tag = Table(
+    "todo_tag",
+    Base.metadata,
+    Column("todo_id", Integer, ForeignKey("todos.id"), primary_key=True),
+    Column("tag_id", Integer, ForeignKey("tags.id"), primary_key=True)
+)
+
+class PriorityLevel(str, enum.Enum):
+    LOW = "low"
+    MEDIUM = "medium"
+    HIGH = "high"
+
+class Tag(Base):
+    __tablename__ = "tags"
+
+    id = Column(Integer, primary_key=True, index=True)
+    name = Column(String(50), nullable=False, unique=True, index=True)
+    created_at = Column(DateTime(timezone=True), server_default=func.now())
+
+    # Relationship to todos
+    todos = relationship("Todo", secondary=todo_tag, back_populates="tags")
+
 class Todo(Base):
     __tablename__ = "todos"
 
@@ -10,5 +35,10 @@ class Todo(Base):
     title = Column(String(100), nullable=False)
     description = Column(Text, nullable=True)
     completed = Column(Boolean, default=False)
+    priority = Column(Enum(PriorityLevel), default=PriorityLevel.MEDIUM)
+    due_date = Column(DateTime(timezone=True), nullable=True)
     created_at = Column(DateTime(timezone=True), server_default=func.now())
-    updated_at = Column(DateTime(timezone=True), onupdate=func.now())
\ No newline at end of file
+    updated_at = Column(DateTime(timezone=True), onupdate=func.now())
+
+    # Relationship to tags
+    tags = relationship("Tag", secondary=todo_tag, back_populates="todos")
\ No newline at end of file
diff --git a/app/schemas.py b/app/schemas.py
index a65e531..2709d1d 100644
--- a/app/schemas.py
+++ b/app/schemas.py
@@ -1,19 +1,52 @@
 from pydantic import BaseModel, Field
-from typing import Optional
+from typing import Optional, List
 from datetime import datetime
+from enum import Enum
+
+class PriorityLevel(str, Enum):
+    LOW = "low"
+    MEDIUM = "medium"
+    HIGH = "high"
+
+class TagBase(BaseModel):
+    name: str = Field(..., min_length=1, max_length=50)
+
+class TagCreate(TagBase):
+    pass
+
+class TagResponse(TagBase):
+    id: int
+    created_at: datetime
+
+    class Config:
+        from_attributes = True
 
 class TodoBase(BaseModel):
     title: str = Field(..., min_length=1, max_length=100)
     description: Optional[str] = None
     completed: bool = False
+    priority: PriorityLevel = PriorityLevel.MEDIUM
+    due_date: Optional[datetime] = None
 
 class TodoCreate(TodoBase):
-    pass
+    tag_ids: Optional[List[int]] = []
+
+class TodoCreateWithTags(TodoBase):
+    tags: Optional[List[str]] = []
+
+class TodoUpdate(BaseModel):
+    title: Optional[str] = Field(None, min_length=1, max_length=100)
+    description: Optional[str] = None
+    completed: Optional[bool] = None
+    priority: Optional[PriorityLevel] = None
+    due_date: Optional[datetime] = None
+    tag_ids: Optional[List[int]] = None
 
 class TodoResponse(TodoBase):
     id: int
     created_at: datetime
     updated_at: Optional[datetime] = None
+    tags: List[TagResponse] = []
 
     class Config:
         from_attributes = True
diff --git a/main.py b/main.py
index db69d94..75c30b9 100644
--- a/main.py
+++ b/main.py
@@ -1,17 +1,25 @@
-from fastapi import FastAPI, Depends, HTTPException
+from fastapi import FastAPI, Depends, HTTPException, Query
 from fastapi.middleware.cors import CORSMiddleware
 import uvicorn
 from typing import List, Optional
 from sqlalchemy.orm import Session
+from sqlalchemy import or_, and_, func
+from datetime import datetime, timedelta
 
-from app.database import get_db
-from app.models import Todo
-from app.schemas import TodoCreate, TodoResponse, HealthResponse
+from app.database import get_db, engine
+from app.models import Todo, Tag, Base
+from app.schemas import (
+    TodoCreate, TodoCreateWithTags, TodoUpdate, TodoResponse,
+    TagCreate, TagResponse, HealthResponse
+)
+
+# Create tables if they don't exist
+Base.metadata.create_all(bind=engine)
 
 app = FastAPI(
-    title="Todo API",
-    description="A simple API for managing todos",
-    version="0.1.0",
+    title="Enhanced Todo API",
+    description="An improved API for managing todos with tags, priority levels, due dates, and search functionality",
+    version="0.2.0",
 )
 
 app.add_middleware(
@@ -26,18 +34,136 @@ app.add_middleware(
 def health():
     return {"status": "healthy"}
 
+# Tag endpoints
+@app.post("/tags/", response_model=TagResponse)
+def create_tag(tag: TagCreate, db: Session = Depends(get_db)):
+    # Check if tag already exists
+    existing_tag = db.query(Tag).filter(Tag.name == tag.name).first()
+    if existing_tag:
+        return existing_tag
+
+    db_tag = Tag(**tag.model_dump())
+    db.add(db_tag)
+    db.commit()
+    db.refresh(db_tag)
+    return db_tag
+
+@app.get("/tags/", response_model=List[TagResponse])
+def get_tags(skip: int = 0, limit: int = 100, db: Session = Depends(get_db)):
+    return db.query(Tag).offset(skip).limit(limit).all()
+
+@app.get("/tags/{tag_id}", response_model=TagResponse)
+def get_tag(tag_id: int, db: Session = Depends(get_db)):
+    db_tag = db.query(Tag).filter(Tag.id == tag_id).first()
+    if db_tag is None:
+        raise HTTPException(status_code=404, detail="Tag not found")
+    return db_tag
+
+# Todo endpoints
 @app.post("/todos/", response_model=TodoResponse)
 def create_todo(todo: TodoCreate, db: Session = Depends(get_db)):
-    db_todo = Todo(**todo.model_dump())
+    todo_data = todo.model_dump(exclude={"tag_ids"})
+    db_todo = Todo(**todo_data)
+
+    # Add tags if provided
+    if todo.tag_ids:
+        for tag_id in todo.tag_ids:
+            tag = db.query(Tag).filter(Tag.id == tag_id).first()
+            if tag is None:
+                raise HTTPException(status_code=404, detail=f"Tag with id {tag_id} not found")
+            db_todo.tags.append(tag)
+
+    db.add(db_todo)
+    db.commit()
+    db.refresh(db_todo)
+    return db_todo
+
+@app.post("/todos/with-tags/", response_model=TodoResponse)
+def create_todo_with_tags(todo: TodoCreateWithTags, db: Session = Depends(get_db)):
+    # Extract and create todo
+    todo_data = todo.model_dump(exclude={"tags"})
+    db_todo = Todo(**todo_data)
+
+    # Process tags
+    if todo.tags:
+        for tag_name in todo.tags:
+            # Find existing tag or create new one
+            tag = db.query(Tag).filter(Tag.name == tag_name).first()
+            if not tag:
+                tag = Tag(name=tag_name)
+                db.add(tag)
+                db.flush()
+            db_todo.tags.append(tag)
+
     db.add(db_todo)
     db.commit()
     db.refresh(db_todo)
     return db_todo
 
 @app.get("/todos/", response_model=List[TodoResponse])
-def get_todos(skip: int = 0, limit: int = 100, db: Session = Depends(get_db)):
-    todos = db.query(Todo).offset(skip).limit(limit).all()
-    return todos
+def get_todos(
+    skip: int = 0,
+    limit: int = 100,
+    title: Optional[str] = None,
+    description: Optional[str] = None,
+    completed: Optional[bool] = None,
+    priority: Optional[str] = None,
+    tag: Optional[str] = None,
+    due_before: Optional[datetime] = None,
+    due_after: Optional[datetime] = None,
+    overdue: Optional[bool] = None,
+    db: Session = Depends(get_db)
+):
+    query = db.query(Todo)
+
+    # Apply filters if provided
+    if title:
+        query = query.filter(Todo.title.ilike(f"%{title}%"))
+    if description:
+        query = query.filter(Todo.description.ilike(f"%{description}%"))
+    if completed is not None:
+        query = query.filter(Todo.completed == completed)
+    if priority:
+        query = query.filter(Todo.priority == priority)
+    if tag:
+        query = query.join(Todo.tags).filter(Tag.name == tag)
+    if due_before:
+        query = query.filter(Todo.due_date <= due_before)
+    if due_after:
+        query = query.filter(Todo.due_date >= due_after)
+    if overdue is not None and overdue:
+        query = query.filter(and_(
+            Todo.due_date < datetime.now(),
+            Todo.completed == False
+        ))
+
+    return query.offset(skip).limit(limit).all()
+
+@app.get("/todos/search/", response_model=List[TodoResponse])
+def search_todos(
+    q: str = Query(..., min_length=1, description="Search query"),
+    db: Session = Depends(get_db)
+):
+    """Search todos by title, description or tag name"""
+    return db.query(Todo).filter(
+        or_(
+            Todo.title.ilike(f"%{q}%"),
+            Todo.description.ilike(f"%{q}%"),
+            Todo.tags.any(Tag.name.ilike(f"%{q}%"))
+        )
+    ).all()
+
+@app.get("/todos/upcoming/", response_model=List[TodoResponse])
+def get_upcoming_todos(days: int = 7, db: Session = Depends(get_db)):
+    """Get todos with due dates in the next N days"""
+    future_date = datetime.now() + timedelta(days=days)
+    return db.query(Todo).filter(
+        and_(
+            Todo.due_date <= future_date,
+            Todo.due_date >= datetime.now(),
+            Todo.completed == False
+        )
+    ).order_by(Todo.due_date).all()
 
 @app.get("/todos/{todo_id}", response_model=TodoResponse)
 def get_todo(todo_id: int, db: Session = Depends(get_db)):
@@ -47,14 +173,27 @@ def get_todo(todo_id: int, db: Session = Depends(get_db)):
     return db_todo
 
 @app.put("/todos/{todo_id}", response_model=TodoResponse)
-def update_todo(todo_id: int, todo: TodoCreate, db: Session = Depends(get_db)):
+def update_todo(todo_id: int, todo: TodoUpdate, db: Session = Depends(get_db)):
     db_todo = db.query(Todo).filter(Todo.id == todo_id).first()
     if db_todo is None:
         raise HTTPException(status_code=404, detail="Todo not found")
-    
-    for key, value in todo.model_dump().items():
+
+    # Update todo attributes
+    todo_data = todo.model_dump(exclude={"tag_ids"}, exclude_unset=True)
+    for key, value in todo_data.items():
         setattr(db_todo, key, value)
-    
+
+    # Update tags if provided
+    if todo.tag_ids is not None:
+        # Clear existing tags
+        db_todo.tags = []
+        # Add new tags
+        for tag_id in todo.tag_ids:
+            tag = db.query(Tag).filter(Tag.id == tag_id).first()
+            if tag is None:
+                raise HTTPException(status_code=404, detail=f"Tag with id {tag_id} not found")
+            db_todo.tags.append(tag)
+
     db.commit()
     db.refresh(db_todo)
     return db_todo
@@ -64,7 +203,7 @@ def delete_todo(todo_id: int, db: Session = Depends(get_db)):
     db_todo = db.query(Todo).filter(Todo.id == todo_id).first()
     if db_todo is None:
         raise HTTPException(status_code=404, detail="Todo not found")
-    
+
     db.delete(db_todo)
     db.commit()
     return db_todo
diff --git a/migrations/versions/002_add_priority_and_due_date.py b/migrations/versions/002_add_priority_and_due_date.py
new file mode 100644
index 0000000..54888e3
--- /dev/null
+++ b/migrations/versions/002_add_priority_and_due_date.py
@@ -0,0 +1,30 @@
+"""add priority and due date to todos
+
+Revision ID: 002
+Revises: 001
+Create Date: 2023-11-21
+
+"""
+from alembic import op
+import sqlalchemy as sa
+from sqlalchemy.dialects import sqlite
+
+# revision identifiers, used by Alembic.
+revision = '002'
+down_revision = '001'
+branch_labels = None
+depends_on = None
+
+
+def upgrade():
+    # Add priority column to todos table
+    with op.batch_alter_table('todos') as batch_op:
+        batch_op.add_column(sa.Column('priority', sa.String(length=10), nullable=False, server_default='medium'))
+        batch_op.add_column(sa.Column('due_date', sa.DateTime(timezone=True), nullable=True))
+
+
+def downgrade():
+    # Remove columns
+    with op.batch_alter_table('todos') as batch_op:
+        batch_op.drop_column('due_date')
+        batch_op.drop_column('priority')
\ No newline at end of file
diff --git a/migrations/versions/003_add_tags_table_and_associations.py b/migrations/versions/003_add_tags_table_and_associations.py
new file mode 100644
index 0000000..b15bab0
--- /dev/null
+++ b/migrations/versions/003_add_tags_table_and_associations.py
@@ -0,0 +1,45 @@
+"""add tags table and associations
+
+Revision ID: 003
+Revises: 002
+Create Date: 2023-11-22
+
+"""
+from alembic import op
+import sqlalchemy as sa
+
+
+# revision identifiers, used by Alembic.
+revision = '003'
+down_revision = '002'
+branch_labels = None
+depends_on = None
+
+
+def upgrade():
+    # Create tags table
+    op.create_table('tags',
+        sa.Column('id', sa.Integer(), nullable=False),
+        sa.Column('name', sa.String(length=50), nullable=False),
+        sa.Column('created_at', sa.DateTime(timezone=True), server_default=sa.text('(CURRENT_TIMESTAMP)')),
+        sa.PrimaryKeyConstraint('id')
+    )
+    op.create_index(op.f('ix_tags_id'), 'tags', ['id'], unique=False)
+    op.create_index(op.f('ix_tags_name'), 'tags', ['name'], unique=True)
+    
+    # Create association table
+    op.create_table('todo_tag',
+        sa.Column('todo_id', sa.Integer(), nullable=False),
+        sa.Column('tag_id', sa.Integer(), nullable=False),
+        sa.ForeignKeyConstraint(['tag_id'], ['tags.id'], ),
+        sa.ForeignKeyConstraint(['todo_id'], ['todos.id'], ),
+        sa.PrimaryKeyConstraint('todo_id', 'tag_id')
+    )
+
+
+def downgrade():
+    # Drop tables
+    op.drop_table('todo_tag')
+    op.drop_index(op.f('ix_tags_name'), table_name='tags')
+    op.drop_index(op.f('ix_tags_id'), table_name='tags')
+    op.drop_table('tags')
\ No newline at end of file