Tag results only within a specific category

Is it possible to have tag results within a specific category?

For example, if my categories were locations (in this case States in the USA) I'd like to be able to narrow down listings in a particular State with tags.

Currently, as far as I can tell, tags return global results from all the listings, not just from the specific category.

For example (from my usage), if I select New Jersey as a category, I see all the listings in NJ. Now I want to use tags to search within the listings in NJ.

Is this possible? If not, what's the best solution?