diff --git a/runtime/lua/vim/lsp/_tagfunc.lua b/runtime/lua/vim/lsp/_tagfunc.lua
index cad2e80bf8..a71c831199 100644
--- a/runtime/lua/vim/lsp/_tagfunc.lua
+++ b/runtime/lua/vim/lsp/_tagfunc.lua
@@ -12,10 +12,9 @@ local function mk_tag_item(name, range, uri, position_encoding)
   -- This is get_line_byte_from_position is 0-indexed, call cursor expects a 1-indexed position
   local pos = vim.pos.lsp(bufnr, range.start, position_encoding)
   local byte = pos.col + 1
-  -- :tag expands "$VAR" in filenames. Escape so URI paths keep literal "$". #41313
   return {
     name = name,
-    filename = vim.fn.fnameescape(vim.uri_to_fname(uri)),
+    filename = vim.uri_to_fname(uri),
     cmd = string.format([[/\%%%dl\%%%dc/]], range.start.line + 1, byte),
   }
 end
diff --git a/test/functional/plugin/lsp_spec.lua b/test/functional/plugin/lsp_spec.lua
index 7fa26ad3ae..fabe2ed53d 100644
--- a/test/functional/plugin/lsp_spec.lua
+++ b/test/functional/plugin/lsp_spec.lua
@@ -3242,24 +3242,6 @@ describe('LSP', function()
         return {}
       end)
     end)
-
-    it('does not expand $ in tag filenames #41313', function()
-      local result = exec_lua(function()
-        vim.env.personId = 'EXPANDED'
-        local dir = vim.fn.tempname()
-        vim.fn.mkdir(dir, 'p')
-        local f = vim.fs.abspath(dir .. '/people_.$personId.tsx')
-        vim.fn.writefile({ 'symbol' }, f)
-        _G.mock_locations[1].uri = vim.uri_from_fname(f)
-        local tags = vim.lsp.tagfunc('symbol', 'c')
-        vim.cmd.edit(tags[1].filename)
-        return {
-          bufname = vim.fs.abspath(vim.api.nvim_buf_get_name(0)),
-          expected = f,
-        }
-      end)
-      eq(result.expected, result.bufname)
-    end)
   end)
 
   describe('cmd', function()