Set insets on UILabel

Please update your code as below

 class TagLabel: UILabel {

    override func draw(_ rect: CGRect) {
        let inset = UIEdgeInsets(top: -2, left: 2, bottom: -2, right: 2)
        super.drawText(in: rect.insetBy(inset))
    }
}

Imho you also have to update the intrinsicContentSize:

class InsetLabel: UILabel {

    let inset = UIEdgeInsets(top: -2, left: 2, bottom: -2, right: 2)

    override func drawText(in rect: CGRect) {
        super.drawText(in: rect.inset(by: inset))
    }

    override var intrinsicContentSize: CGSize {
        var intrinsicContentSize = super.intrinsicContentSize
        intrinsicContentSize.width += inset.left + inset.right
        intrinsicContentSize.height += inset.top + inset.bottom
        return intrinsicContentSize
    }

}

this code differs from the accepted answer because the accepted answer uses insetBy(inset) and this answer uses inset(by: inset). When I added this answer in iOS 10.1 and Swift 4.2.1 autocomplete DID NOT give you rect.inset(by: ) and I had to manually type it in. Maybe it does in Swift 5, I'm not sure

For iOS 10.1 and Swift 4.2.1 use rect.inset(by:)

this:

override func draw(_ rect: CGRect) {

    let inset = UIEdgeInsets(top: -2, left: 2, bottom: -2, right: 2)

    super.drawText(in: rect.inset(by: inset))
}