diff --git a/docs/library-changes.md b/docs/library-changes.md
index 099cbf829..019d23c77 100644
--- a/docs/library-changes.md
+++ b/docs/library-changes.md
@@ -201,3 +201,20 @@ Migration from the legacy JSON format is provided via a walkthrough when opening
 | 95e2fe7b4449951c385e35a2e13f0c1925f1f98e | [v9.6.1](https://github.com/TagStudioDev/TagStudio/releases/tag/v9.6.1) | SQLite |
 
 - Applies repairs to the `tag_parents` table, removing rows that reference child tags that have been deleted.
+
+#### Version 300
+
+| Added in Commit                          | Introduced in Release                                                   | Format |
+| ---------------------------------------- |-------------------------------------------------------------------------| ------ |
+| 51a9c16f50ca785d810911d2d0c83fa33eb1c0ae | [v9.6.2](https://github.com/TagStudioDev/TagStudio/releases/tag/v9.6.2) | SQLite |
+
+- Drops `folder` columns from the `entries` table.
+- Drops the unused `folders` table.
+
+#### Version 301
+
+| Added in Commit | Introduced in Release | Format |
+|-----------------|-----------------------| ------ |
+| TBD             | TBD                   | SQLite |
+
+- Adds the `category_exclusion` table.
diff --git a/docs/tags.md b/docs/tags.md
index 522d22ac0..234a5826f 100644
--- a/docs/tags.md
+++ b/docs/tags.md
@@ -106,6 +106,8 @@ This means that duplicates of tags can appear on entries if the tag inherits fro
 
 ![Tag Category Example](assets/tag_categories_example.png)
 
+If you don't want a tag to appear in one, more, or even all the applicable categories, simply uncheck the category in the "Edit Tag" panel.
+
 ### Built-In Tags and Categories
 
 The built-in tags "Favorite" and "Archived" inherit from the built-in "Meta Tags" category which is marked as a category by default. This behavior of default tags can be fully customized by disabling the category option and/or by adding/removing the tags' Parent Tags.
diff --git a/src/tagstudio/core/library/alchemy/constants.py b/src/tagstudio/core/library/alchemy/constants.py
index 73493c9af..12d2e6caf 100644
--- a/src/tagstudio/core/library/alchemy/constants.py
+++ b/src/tagstudio/core/library/alchemy/constants.py
@@ -9,14 +9,14 @@
 
 DB_VERSION_CURRENT_KEY: str = "CURRENT"
 DB_VERSION_INITIAL_KEY: str = "INITIAL"
-DB_VERSION: int = 300
+DB_VERSION: int = 301
 
 TAG_CHILDREN_QUERY = text("""
 WITH RECURSIVE ChildTags AS (
     SELECT :tag_id AS tag_id
     UNION
     SELECT tp.child_id AS tag_id
-	FROM tag_parents tp
+    FROM tag_parents tp
     INNER JOIN ChildTags c ON tp.parent_id = c.tag_id
 )
 SELECT * FROM ChildTags;
diff --git a/src/tagstudio/core/library/alchemy/joins.py b/src/tagstudio/core/library/alchemy/joins.py
index 7cf1c4862..aa37d915c 100644
--- a/src/tagstudio/core/library/alchemy/joins.py
+++ b/src/tagstudio/core/library/alchemy/joins.py
@@ -20,3 +20,10 @@ class TagEntry(Base):
 
     tag_id: Mapped[int] = mapped_column(ForeignKey("tags.id"), primary_key=True)
     entry_id: Mapped[int] = mapped_column(ForeignKey("entries.id"), primary_key=True)
+
+
+class CategoryExclusion(Base):
+    __tablename__ = "category_exclusions"
+
+    tag_id: Mapped[int] = mapped_column(ForeignKey("tags.id"), primary_key=True)
+    category_id: Mapped[int] = mapped_column(ForeignKey("tags.id"), primary_key=True)
diff --git a/src/tagstudio/core/library/alchemy/library.py b/src/tagstudio/core/library/alchemy/library.py
index 41ada274f..30ea5fc68 100644
--- a/src/tagstudio/core/library/alchemy/library.py
+++ b/src/tagstudio/core/library/alchemy/library.py
@@ -91,7 +91,7 @@
     TextField,
     TextFieldTemplate,
 )
-from tagstudio.core.library.alchemy.joins import TagEntry, TagParent
+from tagstudio.core.library.alchemy.joins import CategoryExclusion, TagEntry, TagParent
 from tagstudio.core.library.alchemy.models import (
     Entry,
     Namespace,
@@ -570,6 +570,7 @@ def open_sqlite_library(
             (self.__apply_db201_migration, 201, 200),  # changes: field tables
             (self.__apply_db202_migration, 202, None),  # changes: tag_parents
             (self.__apply_db300_migration, 300, None),  # changes: deletes folders
+            (self.__apply_db301_migration, 301, None),  # changes: add category_exclusions
         ]
         for migration, v, iv in migrations:
             if loaded_db_version < v and (iv is None or initial_db_version < iv):
@@ -914,6 +915,14 @@ def __apply_db300_migration(self, session: Session, library_dir: Path):
         session.execute(text("DROP TABLE folders"))
         session.flush()
 
+    def __apply_db301_migration(self, session: Session, library_dir: Path):
+        """Migrate DB to DB_VERSION 301.
+
+        The category_exclusion table is generated by SQLAlchemy.
+        This only exists set the correct DB_VERSION.
+        """
+        pass
+
     @property
     def field_templates(self) -> Sequence[BaseFieldTemplate]:
         with Session(self.engine) as session:
@@ -1717,6 +1726,7 @@ def add_tag(
         tag: Tag,
         parent_ids: list[int] | set[int] | None = None,
         aliases: Iterable[TagAlias] | None = None,
+        exclusion_ids: list[int] | set[int] | None = None,
     ) -> Tag | None:
         with Session(self.engine, expire_on_commit=False) as session:
             try:
@@ -1733,6 +1743,9 @@ def add_tag(
                     self.update_aliases(tag, aliases, session)
                     session.flush()
 
+                if exclusion_ids is not None:
+                    self.update_category_exclusion(tag, exclusion_ids, session)
+
                 session.commit()
                 session.expunge(tag)
                 return tag
@@ -1861,6 +1874,7 @@ def get_tag(self, tag_id: int) -> Tag | None:
                 selectinload(Tag.parent_tags),
                 selectinload(Tag.aliases),
                 joinedload(Tag.color),
+                selectinload(Tag.category_exclusions),
             )
             tag = session.scalar(tags_query.where(Tag.id == tag_id))
 
@@ -1931,7 +1945,10 @@ def get_tag_hierarchy(self, tag_ids: Iterable[int]) -> dict[int, Tag]:
 
             statement = select(Tag).where(Tag.id.in_(all_tag_ids))
             statement = statement.options(
-                noload(Tag.parent_tags), selectinload(Tag.aliases), joinedload(Tag.color)
+                noload(Tag.parent_tags),
+                selectinload(Tag.aliases),
+                selectinload(Tag.category_exclusions),
+                joinedload(Tag.color),
             )
             tags = session.scalars(statement).fetchall()
             for tag in tags:
@@ -2010,9 +2027,10 @@ def update_tag(
         tag: Tag,
         parent_ids: list[int] | set[int] | None = None,
         aliases: Iterable[TagAlias] | None = None,
+        exclusion_ids: list[int] | set[int] | None = None,
     ) -> None:
         """Edit a Tag in the Library."""
-        self.add_tag(tag, parent_ids, aliases)
+        self.add_tag(tag, parent_ids, aliases, exclusion_ids)
 
     def update_color(self, old_color_group: TagColorGroup, new_color_group: TagColorGroup) -> None:
         """Update a TagColorGroup in the Library. If it doesn't already exist, create it."""
@@ -2133,6 +2151,22 @@ def update_parent_tags(self, tag: Tag, parent_ids: list[int] | set[int], session
             )
             session.add(parent_tag)
 
+    @staticmethod
+    def update_category_exclusion(tag: Tag, exclusion_ids: list[int] | set[int], session: Session):
+        prev_exclusions = session.scalars(
+            select(CategoryExclusion).where(CategoryExclusion.tag_id == tag.id)
+        ).all()
+
+        for exclusion in prev_exclusions:
+            if exclusion.category_id not in exclusion_ids:
+                session.delete(exclusion)
+            else:
+                exclusion_ids.remove(exclusion.category_id)
+
+        for exclusion_id in exclusion_ids:
+            exclusion = CategoryExclusion(tag_id=tag.id, category_id=exclusion_id)
+            session.add(exclusion)
+
     def get_version(self, key: str) -> int:
         """Get a version value from the DB.
 
diff --git a/src/tagstudio/core/library/alchemy/models.py b/src/tagstudio/core/library/alchemy/models.py
index 0b0a31c22..c7bd0731b 100644
--- a/src/tagstudio/core/library/alchemy/models.py
+++ b/src/tagstudio/core/library/alchemy/models.py
@@ -16,7 +16,7 @@
     DatetimeField,
     TextField,
 )
-from tagstudio.core.library.alchemy.joins import TagParent
+from tagstudio.core.library.alchemy.joins import CategoryExclusion, TagParent
 
 
 class Namespace(Base):
@@ -104,6 +104,12 @@ class Tag(Base):
         back_populates="parent_tags",
     )
     disambiguation_id: Mapped[int | None]
+    category_exclusions: Mapped[set["Tag"]] = relationship(
+        secondary=CategoryExclusion.__tablename__,
+        primaryjoin="Tag.id == CategoryExclusion.tag_id",
+        secondaryjoin="Tag.id == CategoryExclusion.category_id",
+        back_populates="category_exclusions",
+    )
 
     __table_args__ = (
         ForeignKeyConstraint(
@@ -124,6 +130,10 @@ def alias_strings(self) -> list[str]:
     def alias_ids(self) -> list[int]:
         return [tag.id for tag in self.aliases]
 
+    @property
+    def exclusion_ids(self) -> list[int]:
+        return [tag.id for tag in self.category_exclusions]
+
     def __init__(
         self,
         name: str,
@@ -137,6 +147,7 @@ def __init__(
         disambiguation_id: int | None = None,
         is_category: bool = False,
         is_hidden: bool = False,
+        category_exclusions: set["Tag"] | None = None,
     ):
         self.name = name
         self.aliases = aliases or set()
@@ -149,6 +160,7 @@ def __init__(
         self.is_category = is_category
         self.is_hidden = is_hidden
         self.id = id  # pyright: ignore[reportAttributeAccessIssue]
+        self.category_exclusions = category_exclusions or set()
         super().__init__()
 
     @override
diff --git a/src/tagstudio/qt/controllers/tag_box_controller.py b/src/tagstudio/qt/controllers/tag_box_controller.py
index 11dc2a911..42e52232f 100644
--- a/src/tagstudio/qt/controllers/tag_box_controller.py
+++ b/src/tagstudio/qt/controllers/tag_box_controller.py
@@ -88,6 +88,7 @@ def _update_tag_callback(self, build_tag_panel: BuildTagPanel):
             build_tag_panel.build_tag(),
             parent_ids=set(build_tag_panel.parent_ids),
             aliases=set(build_tag_panel.aliases),
+            exclusion_ids=set(build_tag_panel.exclusion_ids),
         )
         self.on_update.emit()
 
diff --git a/src/tagstudio/qt/controllers/tag_search_panel_controller.py b/src/tagstudio/qt/controllers/tag_search_panel_controller.py
index f3de4b165..ed2f248cf 100644
--- a/src/tagstudio/qt/controllers/tag_search_panel_controller.py
+++ b/src/tagstudio/qt/controllers/tag_search_panel_controller.py
@@ -166,7 +166,10 @@ def create_item(self, edit_item_panel: ModalContent, choose_item: bool = False)
         if isinstance(edit_item_panel, BuildTagPanel):
             tag: Tag = edit_item_panel.build_tag()
             self._lib.add_tag(
-                tag, parent_ids=edit_item_panel.parent_ids, aliases=edit_item_panel.aliases
+                tag,
+                parent_ids=edit_item_panel.parent_ids,
+                aliases=edit_item_panel.aliases,
+                exclusion_ids=edit_item_panel.exclusion_ids,
             )
 
             if choose_item:
@@ -188,6 +191,7 @@ def edit_item(self, edit_item_panel: ModalContent) -> None:
             tag=edit_item_panel.build_tag(),
             parent_ids=edit_item_panel.parent_ids,
             aliases=edit_item_panel.aliases,
+            exclusion_ids=edit_item_panel.exclusion_ids,
         )
         self.update_items(self.layout().search_field.text())
 
diff --git a/src/tagstudio/qt/controllers/tag_suggest_box.py b/src/tagstudio/qt/controllers/tag_suggest_box.py
index 27f9030a8..d801de12f 100644
--- a/src/tagstudio/qt/controllers/tag_suggest_box.py
+++ b/src/tagstudio/qt/controllers/tag_suggest_box.py
@@ -141,7 +141,10 @@ def _create_item_from_modal(self, edit_item_panel: ModalContent) -> None:
         if isinstance(edit_item_panel, BuildTagPanel):
             tag: Tag = edit_item_panel.build_tag()
             self._lib.add_tag(
-                tag, parent_ids=edit_item_panel.parent_ids, aliases=edit_item_panel.aliases
+                tag,
+                parent_ids=edit_item_panel.parent_ids,
+                aliases=edit_item_panel.aliases,
+                exclusion_ids=edit_item_panel.exclusion_ids,
             )
             self._on_item_chosen(tag)
             self._clear_search_query()
@@ -158,6 +161,7 @@ def _edit_item(self, edit_item_panel: ModalContent) -> None:
             tag=edit_item_panel.build_tag(),
             parent_ids=edit_item_panel.parent_ids,
             aliases=edit_item_panel.aliases,
+            exclusion_ids=edit_item_panel.exclusion_ids,
         )
         self._update_items(self.layout().search_field.text())
 
diff --git a/src/tagstudio/qt/mixed/build_tag.py b/src/tagstudio/qt/mixed/build_tag.py
index c5492122a..631e3fce9 100644
--- a/src/tagstudio/qt/mixed/build_tag.py
+++ b/src/tagstudio/qt/mixed/build_tag.py
@@ -38,6 +38,7 @@
 from tagstudio.qt.views.search_panel_view import SearchPanelView
 from tagstudio.qt.views.stylesheets.stylesheets import (
     checkbox_style,
+    colored_checkbox_style,
     colored_radio_button_style,
     get_tag_border_color,
     get_tag_highlight_color,
@@ -86,6 +87,7 @@ def __init__(self, library: Library, tag: Tag | None = None) -> None:
         self.tag_color_slug: str | None
         self.disambiguation_id: int | None
         self.parent_ids: set[int] = set()
+        self.exclusion_ids: set[int] = set()
         self.aliases: list[TagAlias] = []
 
         self.setMinimumSize(300, 460)
@@ -184,6 +186,31 @@ def __init__(self, library: Library, tag: Tag | None = None) -> None:
 
         self.parent_tags_add_button.clicked.connect(self.add_tag_modal.show)
 
+        # Categories -----------------------------------------------------------
+        self.category_widget = QWidget()
+        self.category_widget.setMinimumHeight(128)
+
+        self.category_layout = QVBoxLayout(self.category_widget)
+        self.category_layout.setStretch(1, 1)
+        self.category_layout.setContentsMargins(0, 0, 0, 0)
+        self.category_layout.setSpacing(0)
+        self.category_layout.setAlignment(Qt.AlignmentFlag.AlignLeft)
+        self.category_layout.addWidget(QLabel(Translations["tag.categories"]))
+
+        self.category_scroll_contents = QWidget()
+
+        self.category_scroll_layout = QVBoxLayout(self.category_scroll_contents)
+        self.category_scroll_layout.setContentsMargins(6, 6, 6, 0)
+        self.category_scroll_layout.setAlignment(Qt.AlignmentFlag.AlignTop)
+
+        self.category_scroll_area = QScrollArea()
+        self.category_scroll_area.setFocusPolicy(Qt.FocusPolicy.NoFocus)
+        self.category_scroll_area.setWidgetResizable(True)
+        self.category_scroll_area.setFrameShadow(QFrame.Shadow.Plain)
+        self.category_scroll_area.setFrameShape(QFrame.Shape.NoFrame)
+        self.category_scroll_area.setWidget(self.category_scroll_contents)
+        self.category_layout.addWidget(self.category_scroll_area)
+
         # Color ----------------------------------------------------------------
         self.color_widget = QWidget()
         self.color_layout = QVBoxLayout(self.color_widget)
@@ -247,6 +274,7 @@ def __init__(self, library: Library, tag: Tag | None = None) -> None:
         self.root_layout.addWidget(self.aliases_table)
         self.root_layout.addWidget(self.aliases_add_button)
         self.root_layout.addWidget(self.parent_tags_widget)
+        self.root_layout.addWidget(self.category_widget)
         self.root_layout.addWidget(self.color_widget)
         self.root_layout.addWidget(QLabel(header(Translations["tag.properties"], 3)))
         self.root_layout.addWidget(self.cat_widget)
@@ -285,10 +313,12 @@ def enter(self):
     def _add_parent_tag_callback(self, tag_id: int):
         self.parent_ids.add(tag_id)
         self.set_parent_tags()
+        self.set_categories(added_parent_id=tag_id)
 
     def _remove_parent_tag_callback(self, tag_id: int):
         self.parent_ids.remove(tag_id)
         self.set_parent_tags()
+        self.set_categories(removed_parent_id=tag_id)
 
     def _create_alias_callback(self):
         alias = TagAlias("", tag_id=self.tag.id)
@@ -315,6 +345,139 @@ def choose_color_callback(self, tag_color_group: TagColorGroup | None):
             self.tag_color_slug = None
         self.color_button.set_tag_color_group(tag_color_group)
 
+    def set_categories(
+        self, added_parent_id: int | None = None, removed_parent_id: int | None = None
+    ):
+        while self.category_scroll_layout.itemAt(0):
+            self.category_scroll_layout.takeAt(0).widget().deleteLater()
+
+        c = QWidget()
+        layout = QVBoxLayout(c)
+        layout.setContentsMargins(0, 0, 0, 0)
+        layout.setSpacing(3)
+
+        if removed_parent_id is not None:
+            tags_by_category: dict[Tag, set[Tag]] = {}
+            hierarchy = set(self._lib.get_tag_hierarchy([self.tag.id]).values())
+            hierarchy.remove(self.tag)
+            for tag in hierarchy:
+                if self._is_removed_parent(tag):
+                    continue
+                if tag.is_category:
+                    tags_by_category[tag] = set()
+            for tag in hierarchy:
+                if self._is_removed_parent(tag):
+                    continue
+                for parent in self._lib.get_tag_hierarchy([tag.id]).values():
+                    if parent in tags_by_category:
+                        if tag == parent and parent.id not in self.parent_ids:
+                            continue
+                        tags_by_category[parent].add(tag)
+
+            for category, tags in tags_by_category.items():
+                if len(tags) == 0:
+                    continue
+
+                last_tab, next_tab, container = self._build_category_row_widget(category)
+                layout.addWidget(container)
+                self.setTabOrder(last_tab, next_tab)
+        else:
+            tag_ids = {self.tag.id}
+            tag_ids.update(self.parent_ids)
+            if added_parent_id is not None:
+                tag_ids.add(added_parent_id)
+
+            for tag in self._lib.get_tag_hierarchy(tag_ids).values():
+                if not tag.is_category or tag == self.tag:
+                    continue
+                last_tab, next_tab, container = self._build_category_row_widget(tag)
+                layout.addWidget(container)
+                self.setTabOrder(last_tab, next_tab)
+        self.category_scroll_layout.addWidget(c)
+
+    def _is_removed_parent(self, tag: Tag) -> bool:
+        return tag in self.tag.parent_tags and tag.id not in self.parent_ids
+
+    def _build_category_row_widget(self, category: Tag) -> tuple[QPushButton, QCheckBox, QWidget]:
+        container = QWidget()
+        row = QHBoxLayout(container)
+        row.setContentsMargins(0, 0, 0, 0)
+        row.setSpacing(3)
+
+        def update_parent_tag_callback(build_tag_panel: BuildTagPanel):
+            self._lib.update_tag(
+                build_tag_panel.build_tag(),
+                parent_ids=set(build_tag_panel.parent_ids),
+                aliases=set(build_tag_panel.aliases),
+                exclusion_ids=set(build_tag_panel.exclusion_ids),
+            )
+            self.set_categories()
+
+        def on_category_edit(category_tag: Tag) -> None:
+            build_tag_panel = BuildTagPanel(self._lib, tag=category_tag)
+            edit_modal = Modal(
+                build_tag_panel,
+                self._lib.tag_display_name(category_tag),
+                "Edit Tag",
+                is_savable=True,
+            )
+            edit_modal.saved.connect(partial(update_parent_tag_callback, build_tag_panel))
+            edit_modal.show()
+
+        def update_category_exclusion(category_tag: Tag, checked: bool) -> None:
+            if checked:
+                self.exclusion_ids.remove(category_tag.id)
+            else:
+                self.exclusion_ids.add(category_tag.id)
+
+        # Add Tag Widget
+        tag_widget = TagWidget(
+            category,
+            library=self._lib,
+            has_edit=True,
+            has_remove=False,
+        )
+        tag_widget.on_edit.connect(partial(on_category_edit, category))
+        row.addWidget(tag_widget)
+
+        # Add Category Exclusion Tag Button
+        include_checkbox = QCheckBox()
+        include_checkbox.setFixedSize(22, 22)
+        include_checkbox.setToolTip(Translations["tag.categories.tooltip"])
+        include_checkbox.setStyleSheet(colored_checkbox_style(*self._tag_colors(category)))
+
+        if category.id not in self.exclusion_ids:
+            include_checkbox.setChecked(True)
+        include_checkbox.toggled.connect(partial(update_category_exclusion, category))
+
+        row.addWidget(include_checkbox)
+
+        return tag_widget.bg_button, include_checkbox, container
+
+    @staticmethod
+    def _tag_colors(tag: Tag) -> tuple[QColor, QColor, QColor, QColor]:
+        primary_color = get_tag_primary_color(tag)
+
+        border_color = (
+            get_tag_border_color(primary_color)
+            if not (tag.color and tag.color.secondary and tag.color.color_border)
+            else (QColor(tag.color.secondary))
+        )
+
+        highlight_color = get_tag_highlight_color(
+            primary_color
+            if not (tag.color and tag.color.secondary)
+            else QColor(tag.color.secondary)
+        )
+
+        text_color: QColor
+        if tag.color and tag.color.secondary:
+            text_color = QColor(tag.color.secondary)
+        else:
+            text_color = get_tag_text_color(primary_color, highlight_color)
+
+        return primary_color, border_color, highlight_color, text_color
+
     def set_parent_tags(self):
         while self.parent_tags_scroll_layout.itemAt(0):
             self.parent_tags_scroll_layout.takeAt(0).widget().deleteLater()
@@ -346,29 +509,12 @@ def __build_row_item_widget(self, tag: Tag, parent_id: int, is_disambiguation: b
         row.setContentsMargins(0, 0, 0, 0)
         row.setSpacing(3)
 
-        # Init Colors
-        primary_color = get_tag_primary_color(tag)
-        border_color = (
-            get_tag_border_color(primary_color)
-            if not (tag.color and tag.color.secondary and tag.color.color_border)
-            else (QColor(tag.color.secondary))
-        )
-        highlight_color = get_tag_highlight_color(
-            primary_color
-            if not (tag.color and tag.color.secondary)
-            else QColor(tag.color.secondary)
-        )
-        text_color: QColor
-        if tag.color and tag.color.secondary:
-            text_color = QColor(tag.color.secondary)
-        else:
-            text_color = get_tag_text_color(primary_color, highlight_color)
-
         def update_parent_tag_callback(build_tag_panel: BuildTagPanel):
             self._lib.update_tag(
                 build_tag_panel.build_tag(),
                 parent_ids=set(build_tag_panel.parent_ids),
                 aliases=set(build_tag_panel.aliases),
+                exclusion_ids=set(build_tag_panel.exclusion_ids),
             )
             self.set_parent_tags()
 
@@ -395,9 +541,7 @@ def on_parent_tag_edit(tag: Tag) -> None:
         disam_button.setObjectName(f"disambiguationButton.{parent_id}")
         disam_button.setFixedSize(22, 22)
         disam_button.setToolTip(Translations["tag.disambiguation.tooltip"])
-        disam_button.setStyleSheet(
-            colored_radio_button_style(primary_color, text_color, border_color, highlight_color)
-        )
+        disam_button.setStyleSheet(colored_radio_button_style(*self._tag_colors(tag)))
 
         self.disam_button_group.addButton(disam_button)
         if is_disambiguation:
@@ -478,6 +622,10 @@ def set_tag(self, tag: Tag):
             self.parent_ids.add(parent_id)
         self.set_parent_tags()
 
+        for exclusion_id in tag.exclusion_ids:
+            self.exclusion_ids.add(exclusion_id)
+        self.set_categories()
+
         try:
             self.tag_color_namespace = tag.color_namespace
             self.tag_color_slug = tag.color_slug
diff --git a/src/tagstudio/qt/mixed/field_containers.py b/src/tagstudio/qt/mixed/field_containers.py
index 1a6ae897d..8e8fd01de 100644
--- a/src/tagstudio/qt/mixed/field_containers.py
+++ b/src/tagstudio/qt/mixed/field_containers.py
@@ -185,7 +185,7 @@ def get_tag_categories(self, tags: set[Tag]) -> dict[Tag | None, set[Tag]]:
 
                 grandparent_tags: set[Tag] = set()
                 for parent_tag in parent_tags:
-                    if parent_tag in categories:
+                    if parent_tag in categories and parent_tag.id not in tag.exclusion_ids:
                         categories[parent_tag].add(tag)
                         has_category_parent = True
                     grandparent_tags.update(parent_tag.parent_tags)
diff --git a/src/tagstudio/qt/ts_qt.py b/src/tagstudio/qt/ts_qt.py
index ea3a65040..8a64f8a4f 100644
--- a/src/tagstudio/qt/ts_qt.py
+++ b/src/tagstudio/qt/ts_qt.py
@@ -887,6 +887,7 @@ def add_tag_action_callback(self):
                     panel.build_tag(),
                     set(panel.parent_ids),
                     set(panel.aliases),
+                    set(panel.exclusion_ids),
                 ),
                 self.modal.hide(),
             )
diff --git a/src/tagstudio/qt/views/stylesheets/stylesheets.py b/src/tagstudio/qt/views/stylesheets/stylesheets.py
index 07b80f54a..b4b484927 100644
--- a/src/tagstudio/qt/views/stylesheets/stylesheets.py
+++ b/src/tagstudio/qt/views/stylesheets/stylesheets.py
@@ -118,37 +118,50 @@ def line_edit_style_main() -> str:
 
 
 def checkbox_style() -> str:
-    """Style used for QCheckBoxes."""
+    """Style used for common QCheckBoxes."""
     primary_color = QColor(get_tag_color(ColorType.PRIMARY, TagColorEnum.DEFAULT))
-    border_color = get_tag_border_color(primary_color)
     highlight_color = get_tag_highlight_color(primary_color)
-    text_color: QColor = get_tag_text_color(primary_color, highlight_color)
+    return colored_checkbox_style(
+        primary_color,
+        get_tag_border_color(primary_color),
+        highlight_color,
+        get_tag_text_color(primary_color, highlight_color),
+    )
+
+
+def colored_checkbox_style(
+    primary_color: QColor,
+    border_color: QColor,
+    highlight_color: QColor,
+    text_color: QColor,
+) -> str:
+    """Style used for QCheckBoxes."""
     return f"""
-    QCheckBox{{
-        background: rgba{primary_color.toTuple()};
-        color: rgba{text_color.toTuple()};
-        border-color: rgba{border_color.toTuple()};
-        border-radius: 6px;
-        border-style: solid;
-        border-width: 2px;
-    }}
-    QCheckBox::indicator{{
-        width: 10px;
-        height: 10px;
-        border-radius: 2px;
-        margin: 4px;
-    }}
-    QCheckBox::indicator:checked{{
-        background: rgba{text_color.toTuple()};
-    }}
-    QCheckBox::hover{{
-        border-color: rgba{highlight_color.toTuple()};
-    }}
-    QCheckBox::focus{{
-        border-color: rgba{highlight_color.toTuple()};
-        outline: none;
-    }}
-    """
+        QCheckBox{{
+            background: rgba{primary_color.toTuple()};
+            color: rgba{text_color.toTuple()};
+            border-color: rgba{border_color.toTuple()};
+            border-radius: 6px;
+            border-style: solid;
+            border-width: 2px;
+        }}
+        QCheckBox::indicator{{
+            width: 10px;
+            height: 10px;
+            border-radius: 2px;
+            margin: 4px;
+        }}
+        QCheckBox::indicator:checked{{
+            background: rgba{text_color.toTuple()};
+        }}
+        QCheckBox::hover{{
+            border-color: rgba{highlight_color.toTuple()};
+        }}
+        QCheckBox::focus{{
+            border-color: rgba{highlight_color.toTuple()};
+            outline: none;
+        }}
+        """
 
 
 def colored_radio_button_style(
diff --git a/src/tagstudio/resources/translations/en.json b/src/tagstudio/resources/translations/en.json
index 2766729e7..0dad48c7e 100644
--- a/src/tagstudio/resources/translations/en.json
+++ b/src/tagstudio/resources/translations/en.json
@@ -384,6 +384,8 @@
     "tag.add.plural": "Add Tags",
     "tag.aliases": "Aliases",
     "tag.all_tags": "All Tags",
+    "tag.categories": "Categories",
+    "tag.categories.tooltip": "Show tag in this category",
     "tag.choose_color": "Choose Tag Color",
     "tag.color": "Color",
     "tag.confirm_delete": "Are you sure you want to delete the tag \"{tag_name}\"?",
diff --git a/tests/qt/test_build_tag_panel.py b/tests/qt/test_build_tag_panel.py
index c53072ef1..e170a8c09 100644
--- a/tests/qt/test_build_tag_panel.py
+++ b/tests/qt/test_build_tag_panel.py
@@ -4,13 +4,16 @@
 # pyright: reportPrivateUsage = false
 
 from collections.abc import Callable
+from typing import cast
 
+from PySide6.QtWidgets import QCheckBox
 from pytestqt.qtbot import QtBot
 
 from tagstudio.core.library.alchemy.library import Library
 from tagstudio.core.library.alchemy.models import Tag, TagAlias
 from tagstudio.core.utils.types import unwrap
 from tagstudio.qt.mixed.build_tag import BuildTagPanel, CustomTableItem
+from tagstudio.qt.mixed.tag_widget import TagWidget
 from tagstudio.qt.translations import Translations
 
 
@@ -171,3 +174,241 @@ def test_build_tag_panel_build_tag(qtbot: QtBot, library: Library):
     tag: Tag = panel.build_tag()
 
     assert tag.name == Translations["tag.new"]
+
+
+def test_build_tag_panel_show_category_from_parent(
+    qtbot: QtBot, library: Library, generate_tag: Callable[..., Tag]
+):
+    parent = unwrap(library.add_tag(generate_tag("parent", id=123, is_category=True)))
+    child = unwrap(library.add_tag(generate_tag("child", id=124, parent_tags={parent})))
+
+    panel: BuildTagPanel = BuildTagPanel(library, child)
+    qtbot.addWidget(panel)
+
+    tag_widget = __find_category_tag_widget(panel)
+    assert tag_widget is not None
+    assert tag_widget.tag == parent
+
+
+def test_build_tag_panel_show_category_from_grandparent(
+    qtbot: QtBot, library: Library, generate_tag: Callable[..., Tag]
+):
+    grandparent = unwrap(library.add_tag(generate_tag("grandparent", id=122, is_category=True)))
+    parent = unwrap(library.add_tag(generate_tag("parent", id=123, parent_tags={grandparent})))
+    child = unwrap(library.add_tag(generate_tag("child", id=124, parent_tags={parent})))
+
+    panel: BuildTagPanel = BuildTagPanel(library, child)
+    qtbot.addWidget(panel)
+
+    tag_widget = __find_category_tag_widget(panel)
+    assert tag_widget is not None
+    assert tag_widget.tag == grandparent
+
+
+def test_build_tag_panel_add_category_through_parent(
+    qtbot: QtBot, library: Library, generate_tag: Callable[..., Tag]
+):
+    parent = unwrap(library.add_tag(generate_tag("parent", id=123, is_category=True)))
+    child = unwrap(library.add_tag(generate_tag("child", id=124)))
+
+    panel: BuildTagPanel = BuildTagPanel(library, child)
+    qtbot.addWidget(panel)
+
+    assert __find_category_tag_widget(panel) is None
+
+    child.parent_tags.add(parent)
+
+    panel._add_parent_tag_callback(parent.id)
+    tag_widget = __find_category_tag_widget(panel)
+    assert tag_widget is not None
+    assert tag_widget.tag == parent
+
+
+def test_build_tag_panel_add_category_through_grandparent(
+    qtbot: QtBot, library: Library, generate_tag: Callable[..., Tag]
+):
+    grandparent = unwrap(library.add_tag(generate_tag("grandparent", id=122, is_category=True)))
+    parent = unwrap(library.add_tag(generate_tag("parent", id=123, parent_tags={grandparent})))
+    child = unwrap(library.add_tag(generate_tag("child", id=124)))
+
+    panel: BuildTagPanel = BuildTagPanel(library, child)
+    qtbot.addWidget(panel)
+
+    assert __find_category_tag_widget(panel) is None
+
+    child.parent_tags.add(parent)
+
+    panel._add_parent_tag_callback(parent.id)
+    tag_widget = __find_category_tag_widget(panel)
+    assert tag_widget is not None
+    assert tag_widget.tag == grandparent
+
+
+def test_build_tag_panel_remove_category_through_parent(
+    qtbot: QtBot, library: Library, generate_tag: Callable[..., Tag]
+):
+    parent = unwrap(library.add_tag(generate_tag("parent", id=123, is_category=True)))
+    child = unwrap(library.add_tag(generate_tag("child", id=124, parent_tags={parent})))
+
+    panel: BuildTagPanel = BuildTagPanel(library, child)
+    qtbot.addWidget(panel)
+
+    tag_widget = __find_category_tag_widget(panel)
+    assert tag_widget is not None
+    assert tag_widget.tag == parent
+
+    panel._remove_parent_tag_callback(parent.id)
+
+    assert __find_category_tag_widget(panel) is None
+
+
+def test_build_tag_panel_remove_category_through_grandparent(
+    qtbot: QtBot, library: Library, generate_tag: Callable[..., Tag]
+):
+    grandparent = unwrap(library.add_tag(generate_tag("grandparent", id=122, is_category=True)))
+    parent = unwrap(library.add_tag(generate_tag("parent", id=123, parent_tags={grandparent})))
+    child = unwrap(library.add_tag(generate_tag("child", id=124, parent_tags={parent})))
+
+    panel: BuildTagPanel = BuildTagPanel(library, child)
+    qtbot.addWidget(panel)
+
+    tag_widget = __find_category_tag_widget(panel)
+    assert tag_widget is not None
+    assert tag_widget.tag == grandparent
+
+    panel._remove_parent_tag_callback(parent.id)
+
+    assert __find_category_tag_widget(panel) is None
+
+
+def test_build_tag_panel_exclude_from_category(
+    qtbot: QtBot, library: Library, generate_tag: Callable[..., Tag]
+):
+    parent = unwrap(library.add_tag(generate_tag("parent", id=123, is_category=True)))
+    child = unwrap(library.add_tag(generate_tag("child", id=124, parent_tags={parent})))
+
+    panel: BuildTagPanel = BuildTagPanel(library, child)
+    qtbot.addWidget(panel)
+
+    assert len(panel.exclusion_ids) == 0
+
+    tag_widget = __find_category_tag_widget(panel)
+    assert tag_widget is not None
+
+    checkbox = __find_include_checkbox(tag_widget)
+    assert checkbox.isChecked()
+
+    checkbox.click()
+
+    assert parent.id in panel.exclusion_ids
+
+
+def test_build_tag_panel_include_in_category(
+    qtbot: QtBot, library: Library, generate_tag: Callable[..., Tag]
+):
+    parent = unwrap(library.add_tag(generate_tag("parent", id=123, is_category=True)))
+    child = unwrap(
+        library.add_tag(
+            generate_tag("child", id=124, parent_tags={parent}, category_exclusions={parent})
+        )
+    )
+
+    panel: BuildTagPanel = BuildTagPanel(library, child)
+    qtbot.addWidget(panel)
+
+    assert parent.id in panel.exclusion_ids
+
+    tag_widget = __find_category_tag_widget(panel)
+    assert tag_widget is not None
+
+    checkbox = __find_include_checkbox(tag_widget)
+    assert not checkbox.isChecked()
+
+    checkbox.click()
+
+    assert len(panel.exclusion_ids) == 0
+
+
+def test_build_tag_panel_remove_duplicate_category_retained(
+    qtbot: QtBot, library: Library, generate_tag: Callable[..., Tag]
+):
+    grandparent = unwrap(library.add_tag(generate_tag("grandparent", id=122, is_category=True)))
+    parent = unwrap(library.add_tag(generate_tag("parent", id=123, parent_tags={grandparent})))
+    other_parent = unwrap(
+        library.add_tag(generate_tag("other_parent", id=124, parent_tags={grandparent}))
+    )
+    child = unwrap(
+        library.add_tag(generate_tag("child", id=125, parent_tags={parent, other_parent}))
+    )
+
+    panel: BuildTagPanel = BuildTagPanel(library, child)
+    qtbot.addWidget(panel)
+
+    tag_widget = __find_category_tag_widget(panel)
+    assert tag_widget is not None
+    assert tag_widget.tag == grandparent
+
+    panel._remove_parent_tag_callback(parent.id)
+
+    tag_widget = __find_category_tag_widget(panel)
+    assert tag_widget is not None
+    assert tag_widget.tag == grandparent
+
+
+def test_build_tag_panel_new_tag_multiple_categories(
+    qtbot: QtBot, library: Library, generate_tag: Callable[..., Tag]
+):
+    parent = unwrap(library.add_tag(generate_tag("parent", id=123, is_category=True)))
+    other_parent = unwrap(library.add_tag(generate_tag("other_parent", id=124, is_category=True)))
+
+    panel: BuildTagPanel = BuildTagPanel(library)
+    qtbot.addWidget(panel)
+
+    tag_widget = __find_category_tag_widget(panel)
+    assert tag_widget is None
+
+    panel._add_parent_tag_callback(parent.id)
+
+    tag_widget = __find_category_tag_widget(panel)
+    assert tag_widget is not None
+    assert tag_widget.tag == parent
+
+    panel._add_parent_tag_callback(other_parent.id)
+
+    tag_widget = __find_category_tag_widget(panel, 1)
+    assert tag_widget is not None
+    assert tag_widget.tag == other_parent
+
+
+def test_build_tag_panel_category_not_shown_for_self(
+    qtbot: QtBot, library: Library, generate_tag: Callable[..., Tag]
+):
+    library.add_tag(generate_tag("category", id=123, is_category=True))
+
+    panel: BuildTagPanel = BuildTagPanel(library)
+    qtbot.addWidget(panel)
+
+    tag_widget = __find_category_tag_widget(panel)
+    assert tag_widget is None
+
+
+def __find_category_tag_widget(panel: BuildTagPanel, index: int = 0) -> TagWidget | None:
+    item = panel.category_scroll_layout.itemAt(0).widget().layout().itemAt(index)
+    while item is not None:
+        if isinstance(item.widget(), TagWidget):
+            break
+        item = item.widget().layout().itemAt(0)
+
+    if item is not None:
+        return cast(TagWidget, item.widget())
+    return None
+
+
+def __find_include_checkbox(tag_widget: TagWidget) -> QCheckBox:
+    layout_item = tag_widget.parentWidget().layout().itemAt(1)
+    assert layout_item is not None
+
+    widget = layout_item.widget()
+    assert isinstance(widget, QCheckBox)
+
+    return widget
diff --git a/tests/qt/test_field_containers.py b/tests/qt/test_field_containers.py
index 3307239e4..21f0e7d51 100644
--- a/tests/qt/test_field_containers.py
+++ b/tests/qt/test_field_containers.py
@@ -1,8 +1,11 @@
 # SPDX-FileCopyrightText: (c) TagStudio Contributors
 # SPDX-License-Identifier: GPL-3.0-only
+from collections.abc import Callable
+from pathlib import Path
 
-# pyright: reportPrivateUsage=false
+from tagstudio.core.library.alchemy.library import Library
 
+# pyright: reportPrivateUsage=false
 from tagstudio.core.library.alchemy.models import Entry, Tag
 from tagstudio.core.utils.types import unwrap
 from tagstudio.qt.controllers.preview_panel_controller import PreviewPanel
@@ -182,3 +185,26 @@ def test_custom_tag_category(qt_driver: QtDriver, entry_full: Entry):
                 assert container.title != "<h4>Tags</h4>"
             case _:
                 pass
+
+
+def test_exclude_tag_category(
+    qt_driver: QtDriver, library: Library, generate_tag: Callable[..., Tag]
+):
+    panel = PreviewPanel(qt_driver)
+
+    category_parent = unwrap(generate_tag("category_parent", id=123, is_category=True))
+    library.add_tag(category_parent)
+
+    tag = unwrap(generate_tag("tag", id=124))
+    library.add_tag(tag, parent_ids={category_parent.id}, exclusion_ids={category_parent.id})
+
+    entry = Entry(id=777, path=Path("test.txt"), fields=[])
+
+    library.add_entries([entry])
+    library.add_tags_to_entries(entry.id, tag.id)
+
+    qt_driver.toggle_item_selection(entry.id, append=False, bridge=False)
+    panel.set_selection(qt_driver.selected)
+
+    assert len(panel.containers._containers) == 1
+    assert panel.containers._containers[0].title == "<h4>Tags</h4>"