diff --git a/qiskit_ibm_runtime/ibm_backend.py b/qiskit_ibm_runtime/ibm_backend.py
index df71c6540..8d7f4f426 100644
--- a/qiskit_ibm_runtime/ibm_backend.py
+++ b/qiskit_ibm_runtime/ibm_backend.py
@@ -545,6 +545,10 @@ def run(
         """
         # pylint: disable=arguments-differ
         options = {"backend_name": self.name}
+        if job_tags:
+            options["job_tags"] = job_tags
+        if max_execution_time:
+            options["max_execution_time"] = max_execution_time
         inputs = {"circuits": circuits}
         if shots:
             inputs["shots"] = shots
@@ -573,8 +577,6 @@ def run(
             result_decoder=result_decoder,
             instance=instance,
             session_id=session_id,
-            job_tags=job_tags,
-            max_execution_time=max_execution_time,
             start_session=start_session,
         )
 
diff --git a/qiskit_ibm_runtime/options.py b/qiskit_ibm_runtime/options.py
index 70efd6a66..77d7676a2 100644
--- a/qiskit_ibm_runtime/options.py
+++ b/qiskit_ibm_runtime/options.py
@@ -160,6 +160,7 @@ class EnvironmentOptions:
     log_level: str = "WARNING"
     image: Optional[str] = None
     instance: Optional[str] = None
+    job_tags: Optional[List[str]] = None
 
 
 @_flexible
@@ -168,6 +169,9 @@ class Options:
     """Options for the primitive programs.
 
     Args:
+        max_execution_time: Maximum execution time in seconds. If
+            a job exceeds this time limit, it is forcibly cancelled.
+
         optimization_level: How much optimization to perform on the circuits.
             Higher levels generate more optimized circuits,
             at the expense of longer transpilation times.
@@ -263,8 +267,13 @@ class Options:
             * instance: The hub/group/project to use, in that format. This is only supported
                 for ``ibm_quantum`` channel. If ``None``, a hub/group/project that provides
                 access to the target backend is randomly selected.
+
+            * job_tags: Tags to be assigned to the job. The tags can subsequently be used
+                as a filter in the :meth:`qiskit_ibm_runtime.qiskit_runtime_service.jobs()`
+                function call.
     """
 
+    max_execution_time: int = None
     optimization_level: int = 1
     resilience_level: int = 0
     transpilation: Union[TranspilationOptions, Dict] = field(
@@ -344,7 +353,7 @@ def _get_runtime_options(options: Dict) -> Dict:
         for fld in fields(RuntimeOptions):
             if fld.name in environment:
                 out[fld.name] = environment[fld.name]
-
+        out["max_execution_time"] = options.get("max_execution_time")
         return out
 
     def _merge_options(self, new_options: Optional[Dict] = None) -> Dict:
diff --git a/qiskit_ibm_runtime/qiskit_runtime_service.py b/qiskit_ibm_runtime/qiskit_runtime_service.py
index 9e66feb8b..3a9a68bfd 100644
--- a/qiskit_ibm_runtime/qiskit_runtime_service.py
+++ b/qiskit_ibm_runtime/qiskit_runtime_service.py
@@ -47,7 +47,6 @@
 from .utils import RuntimeDecoder, to_base64_string, to_python_identifier
 from .utils.backend_decoder import configuration_from_server_data
 from .utils.hgp import to_instance_format, from_instance_format
-from .utils.utils import validate_job_tags
 from .api.client_parameters import ClientParameters
 from .runtime_options import RuntimeOptions
 from .utils.deprecation import (
@@ -854,8 +853,6 @@ def run(
         result_decoder: Optional[Type[ResultDecoder]] = None,
         instance: Optional[str] = None,
         session_id: Optional[str] = None,
-        job_tags: Optional[List[str]] = None,
-        max_execution_time: Optional[int] = None,
         start_session: Optional[bool] = False,
     ) -> RuntimeJob:
         """Execute the runtime program.
@@ -873,6 +870,10 @@ def run(
                 * log_level: logging level to set in the execution environment. The valid
                     log levels are: ``DEBUG``, ``INFO``, ``WARNING``, ``ERROR``, and ``CRITICAL``.
                     The default level is ``WARNING``.
+                * job_tags: Tags to be assigned to the job. The tags can subsequently be used
+                    as a filter in the :meth:`jobs()` function call.
+                * max_execution_time: Maximum execution time in seconds. If
+                    a job exceeds this time limit, it is forcibly cancelled.
 
             callback: Callback function to be invoked for any interim results and final result.
                 The callback function will receive 2 positional parameters:
@@ -885,10 +886,6 @@ def run(
             instance: This is only supported for ``ibm_quantum`` runtime and is in the
                 hub/group/project format.
             session_id: Job ID of the first job in a runtime session.
-            job_tags: Tags to be assigned to the job. The tags can subsequently be used
-                as a filter in the :meth:`jobs()` function call.
-            max_execution_time: Maximum execution time in seconds. This overrides
-                the max_execution_time of the program and cannot exceed it.
             start_session: Set to True to explicitly start a runtime session. Defaults to False.
 
         Returns:
@@ -905,7 +902,6 @@ def run(
                 DeprecationWarning,
                 stacklevel=2,
             )
-        validate_job_tags(job_tags, IBMInputValueError)
 
         qrt_options: RuntimeOptions = options
         if options is None:
@@ -932,7 +928,9 @@ def run(
         hgp_name = None
         if self._channel == "ibm_quantum":
             # Find the right hgp
-            hgp = self._get_hgp(instance=instance, backend_name=qrt_options.backend)
+            hgp = self._get_hgp(
+                instance=qrt_options.instance, backend_name=qrt_options.backend
+            )
             backend = hgp.backend(qrt_options.backend)
             hgp_name = hgp.name
 
@@ -946,8 +944,8 @@ def run(
                 hgp=hgp_name,
                 log_level=qrt_options.log_level,
                 session_id=session_id,
-                job_tags=job_tags,
-                max_execution_time=max_execution_time,
+                job_tags=qrt_options.job_tags,
+                max_execution_time=qrt_options.max_execution_time,
                 start_session=start_session,
             )
         except RequestsApiError as ex:
diff --git a/qiskit_ibm_runtime/runtime_options.py b/qiskit_ibm_runtime/runtime_options.py
index e8dadfd17..9ef94c96a 100644
--- a/qiskit_ibm_runtime/runtime_options.py
+++ b/qiskit_ibm_runtime/runtime_options.py
@@ -15,12 +15,13 @@
 import re
 import logging
 from dataclasses import dataclass
-from typing import Optional
+from typing import Optional, List
 
 from qiskit.utils.deprecation import deprecate_arguments
 
 from .exceptions import IBMInputValueError
 from .utils.deprecation import issue_deprecation_msg
+from .utils.utils import validate_job_tags
 
 
 @dataclass(init=False)
@@ -31,6 +32,8 @@ class RuntimeOptions:
     image: Optional[str] = None
     log_level: Optional[str] = None
     instance: Optional[str] = None
+    job_tags: Optional[List[str]] = None
+    max_execution_time: Optional[int] = None
 
     @deprecate_arguments({"backend_name": "backend"})
     def __init__(
@@ -39,6 +42,8 @@ def __init__(
         image: Optional[str] = None,
         log_level: Optional[str] = None,
         instance: Optional[str] = None,
+        job_tags: Optional[List[str]] = None,
+        max_execution_time: Optional[int] = None,
     ) -> None:
         """RuntimeOptions constructor.
 
@@ -53,11 +58,17 @@ def __init__(
             instance: The hub/group/project to use, in that format. This is only supported
                 for ``ibm_quantum`` channel. If ``None``, a hub/group/project that provides
                 access to the target backend is randomly selected.
+            job_tags: Tags to be assigned to the job. The tags can subsequently be used
+                as a filter in the :meth:`jobs()` function call.
+            max_execution_time: Maximum execution time in seconds. If
+                a job exceeds this time limit, it is forcibly cancelled.
         """
         self.backend = backend
         self.image = image
         self.log_level = log_level
         self.instance = instance
+        self.job_tags = job_tags
+        self.max_execution_time = max_execution_time
 
     def validate(self, channel: str) -> None:
         """Validate options.
@@ -91,6 +102,8 @@ def validate(self, channel: str) -> None:
                 f"{self.log_level} is not a valid log level. The valid log levels are: `DEBUG`, "
                 f"`INFO`, `WARNING`, `ERROR`, and `CRITICAL`."
             )
+        if self.job_tags:
+            validate_job_tags(self.job_tags, IBMInputValueError)
 
     @property
     def backend_name(self) -> str:
diff --git a/qiskit_ibm_runtime/runtime_session.py b/qiskit_ibm_runtime/runtime_session.py
index 62368a348..67d9bbad8 100644
--- a/qiskit_ibm_runtime/runtime_session.py
+++ b/qiskit_ibm_runtime/runtime_session.py
@@ -91,7 +91,6 @@ def _run(self, inputs: Union[Dict, ParameterNamespace]) -> RuntimeJob:
             inputs=inputs,
             session_id=self._session_id,
             start_session=self._start_session,
-            max_execution_time=self._max_time,
         )
 
     @_active_session
diff --git a/qiskit_ibm_runtime/session.py b/qiskit_ibm_runtime/session.py
index 10f00a327..de97ecf39 100644
--- a/qiskit_ibm_runtime/session.py
+++ b/qiskit_ibm_runtime/session.py
@@ -137,13 +137,14 @@ def run(
         Returns:
             Submitted job.
         """
-
         # TODO: Cache data when server supports it.
 
-        # TODO: Do we really need to specify a None max time if session has started?
-        max_time = self._max_time if not self._session_id else None
         options = options or {}
         options["backend"] = self._backend
+        # TODO: Do we really need to specify a None max time if session has started?
+        max_time = self._max_time if not self._session_id else None
+        if max_time:
+            options["max_execution_time"] = max_time
 
         job = self._service.run(
             program_id=program_id,
@@ -151,7 +152,6 @@ def run(
             inputs=inputs,
             session_id=self._session_id,
             start_session=self._session_id is None,
-            max_execution_time=max_time,
             callback=callback,
             result_decoder=result_decoder,
         )
diff --git a/releasenotes/notes/add-options-26c127fcd40623a5.yaml b/releasenotes/notes/add-options-26c127fcd40623a5.yaml
new file mode 100644
index 000000000..dc5754fba
--- /dev/null
+++ b/releasenotes/notes/add-options-26c127fcd40623a5.yaml
@@ -0,0 +1,6 @@
+---
+upgrade:
+  - |
+    The :class:`qiskit_ibm_runtime.Options` class now accepts 
+    ``max_execution_time`` as a first level option and ``job_tags`` as an option under `environment`. 
+    :class:`qiskit_ibm_runtime.RuntimeOptions` has also been updated to include these two parameters.  
diff --git a/test/ibm_test_case.py b/test/ibm_test_case.py
index 971e1ce1b..6fe0cb16b 100644
--- a/test/ibm_test_case.py
+++ b/test/ibm_test_case.py
@@ -203,13 +203,16 @@ def _run_program(
         backend_name = (
             backend if backend is not None else self.sim_backends[service.channel]
         )
-        options = {"backend": backend_name, "log_level": log_level}
+        options = {
+            "backend": backend_name,
+            "log_level": log_level,
+            "job_tags": job_tags,
+            "max_execution_time": max_execution_time,
+        }
         job = service.run(
             program_id=pid,
             inputs=inputs,
             options=options,
-            job_tags=job_tags,
-            max_execution_time=max_execution_time,
             session_id=session_id,
             callback=callback,
             start_session=start_session,
diff --git a/test/program.py b/test/program.py
index 7804f81e1..e4fc4af72 100644
--- a/test/program.py
+++ b/test/program.py
@@ -86,7 +86,13 @@ def run_program(
 ):
     """Run a program."""
     backend_name = backend_name if backend_name is not None else "common_backend"
-    options = {"backend": backend_name, "image": image, "log_level": log_level}
+    options = {
+        "backend": backend_name,
+        "image": image,
+        "log_level": log_level,
+        "job_tags": job_tags,
+        "max_execution_time": max_execution_time,
+    }
     if final_status is not None:
         service._api_client.set_final_status(final_status)
     elif job_classes:
@@ -99,8 +105,6 @@ def run_program(
         inputs=inputs,
         result_decoder=decoder,
         instance=instance,
-        job_tags=job_tags,
-        max_execution_time=max_execution_time,
         session_id=session_id,
     )
     job._creation_date = datetime.now(timezone.utc)