A new technique that enables passive ultra high frequency (UHF) radio frequency identification (RFID) tags to be read when they are placed in close proximity in an array is presented. This paper demonstrates that, in a linear tag array with a tag separation of 1 cm, the interaction between the backscattered waves and incident wave causes a significant degradation in tag sensitivity. It is found that the use of tags that have polarization diversity can improve the read performance when they are placed in close proximity to one another compared with conventional linear tags. Two ways of achieving polarization diversity are studied in this paper, namely: 1) using a circularly polarized tag and 2) using a cross-polarized tag pair. Both methods show an improvement in close proximity read performance and it is experimentally demonstrated that by using cross-polarized tag pairs in an array, one achieves on average a 2.6-dB increase in read power margin for a 57-tag array with 1 cm separation compared with using conventional linearly polarized tags.