diff --git a/lisp/ChangeLog b/lisp/ChangeLog
index ca5666e5b7c..0559b95ee18 100644
--- a/lisp/ChangeLog
+++ b/lisp/ChangeLog
@@ -1,3 +1,8 @@
+2002-09-29  Mike Williams  <mdub@bigfoot.com>
+
+	* textmodes/sgml-mode.el (sgml-guess-indent): Handle
+	tabs correctly.
+
 2002-09-29  Richard M. Stallman  <rms@gnu.org>
 
 	* custom.el (defcustom): Doc fix.
diff --git a/lisp/textmodes/sgml-mode.el b/lisp/textmodes/sgml-mode.el
index bad9dcc4a34..f5bd3236412 100644
--- a/lisp/textmodes/sgml-mode.el
+++ b/lisp/textmodes/sgml-mode.el
@@ -1288,7 +1288,7 @@ Add this to `sgml-mode-hook' for convenience."
     (if (re-search-forward "^\\([ \t]+\\)<" 500 'noerror)
         (progn
           (set (make-local-variable 'sgml-basic-offset)
-               (length (match-string 1)))
+               (1- (current-column)))
           (message "Guessed sgml-basic-offset = %d"
                    sgml-basic-offset)
           ))))