The move will apply to 12 to 16 year olds who have been bailed awaiting trial for offences such as criminal damage and theft or robbery.
The tagged teenagers would face a curfew order imposed by a magistrate, with the tag being monitored by a security company.
If the tagged person tries to leave their home during hours that the courts have decided they can't, an alarm tips off the security company.
The government hope the tags will help to stop the rise in violence and street crime, and will stop young people who commit lots of crimes.
The scheme will be tested in April in six places where street crime is very bad, before spreading to the rest of the country in June, and eventually as many as 6,000 children could be tagged.