how to get value of selected item in autocomplete

When autocomplete changes a value, it fires a autocompletechange event, not the change event

$(document).ready(function () {
    $('#tags').on('autocompletechange change', function () {
        $('#tagsname').html('You selected: ' + this.value);
    }).change();
});

Demo: Fiddle

Another solution is to use select event, because the change event is triggered only when the input is blurred

$(document).ready(function () {
    $('#tags').on('change', function () {
        $('#tagsname').html('You selected: ' + this.value);
    }).change();
    $('#tags').on('autocompleteselect', function (e, ui) {
        $('#tagsname').html('You selected: ' + ui.item.value);
    });
});

Demo: Fiddle