Categories are only used for categorizing regular transactions. Learn more about the different transaction types here. Categories can have a budget associated with them, and can be grouped together under a single Category Group. Categories also have their own tab in Copilot for review and management. Learn more about Categories here.

Tags can be used to associate any type of transaction, and do not have any budget associated with them. You can view Tag totals by month by filtering by one or more tags in the Transactions tab. Tags can be managed in several locations, including transaction lists, the transaction detail view, and in Settings under Features > Tags. Learn more about Tags here.

For example, there are different tags associated with this list of transactions, but all of the transactions are part of the Shops category.