The upgrade documentation at https://drupal.org/upgrade states that an upgrade consists of changing the major version while an update is changing the minor version of Drupal.
Excerpt:
What's the difference? Major versions (upgrade) versus Minor versions (update)
Before you start updating or upgrading your Drupal installation it is important that you know the difference between a major and a minor version release.
We know that applying updates is part of the routine maintenance tasks, whereas an upgrade is a task of a different scale, a project that presumably involves adjusting code, design, modules, etc.
Yet when tagging a question with upgrade, it gets renamed automatically to updates as they are the same thing. I assume one is set as a synonym of the other.
version-upgrade is also suggested, and that would theoretically be fine, except that almost nobody seems to use it (3 questions only).
When searching for questions on upgrades, this confusion between tags doesn't help because questions on upgrading like Upgrading a site from Drupal 6 to 7 using Drush
get tagged the same as questions on updating like How to get update to check Feature Server.
Wouldn't it be better if they were not synonyms and their descriptions were aligned with Drupal.org's documentation?