feat: databricks_tags merge behavior

Signed-off-by: Can Bekleyici <can.bekleyici@deepl.com>

Author: canbekley

CHANGELOG.md

@@ -43,6 +43,11 @@
 - Fix catalog names with special characters (e.g., hyphens) not being quoted in `SHOW SCHEMAS` commands, causing `INVALID_IDENTIFIER` errors ([#1325](https://github.com/databricks/dbt-databricks/issues/1325))
 - Fix liquid clustering rendering on streaming table materialization [#1330](https://github.com/databricks/dbt-databricks/pull/1330)
 
+### Under the Hood
+
+- **BREAKING:** `databricks_tags` defined at different hierarchy levels (e.g. project-level and model-level) now merge additively instead of the child config completely replacing the parent.
+
+
 ## dbt-databricks 1.11.5 (Feb 19, 2026)
 
 ### Fixes

dbt/adapters/databricks/impl.py

@@ -5,7 +5,7 @@
 from collections.abc import Iterable, Iterator
 from concurrent.futures import Future
 from contextlib import contextmanager
-from dataclasses import dataclass
+from dataclasses import dataclass, field
 from importlib import metadata
 from multiprocessing.context import SpawnContext
 from typing import TYPE_CHECKING, Any, ClassVar, Generic, NamedTuple, Optional, Union, cast
@@ -29,7 +29,7 @@
     SparkAdapter,
 )
 from dbt_common.behavior_flags import BehaviorFlag
-from dbt_common.contracts.config.base import BaseConfig
+from dbt_common.contracts.config.base import BaseConfig, MergeBehavior
 from dbt_common.exceptions import DbtConfigError, DbtInternalError
 from dbt_common.utils import executor
 from dbt_common.utils.dict import AttrDict
@@ -176,7 +176,7 @@ class DatabricksConfig(AdapterConfig):
     options: Optional[dict[str, str]] = None
     merge_update_columns: Optional[str] = None
     merge_exclude_columns: Optional[str] = None
-    databricks_tags: Optional[dict[str, str]] = None
+    databricks_tags: Optional[dict[str, str]] = field(default=None, metadata=MergeBehavior.Update.meta())
     query_tags: Optional[str] = None
     tblproperties: Optional[dict[str, str]] = None
     zorder: Optional[Union[list[str], str]] = None

tests/functional/adapter/tags/fixtures.py

@@ -16,6 +16,15 @@
 select cast(1 as bigint) as id, 'hello' as msg, 'blue' as color
 """
 
+tags_merged_sql = """
+{{ config(
+    materialized = 'table',
+    databricks_tags = {'c': 'd'},
+) }}
+
+select cast(1 as bigint) as id, 'hello' as msg, 'blue' as color
+"""
+
 streaming_table_tags_sql = """
 {{ config(
     materialized='streaming_table',

tests/functional/adapter/tags/test_databricks_tags.py

@@ -62,6 +62,25 @@ def test_updated_tags(self, project):
         assert actual_tags == expected_tags
 
 
+@pytest.mark.skip_profile("databricks_cluster")
+class TestTableTagsMerged(BaseTestTags):
+
+    @pytest.fixture(scope="class")
+    def models(self):
+        return {"tags.sql": fixtures.tags_merged_sql}
+
+    @pytest.fixture(scope="class")
+    def project_config_update(self):
+        return {
+            "models": {
+                "+databricks_tags": {
+                    "a": "b",
+                    "c": "TO_BE_REPLACED_AT_MODEL_LEVEL",
+                }
+            }
+        }
+
+
 @pytest.mark.skip_profile("databricks_cluster")
 class TestTableTagsUpdateViaAlter(BaseTestTagsUpdateViaAlter):
     pass