diff --git a/screen/reports/src/main/java/com/ivy/reports/FilterOverlay.kt b/screen/reports/src/main/java/com/ivy/reports/FilterOverlay.kt
index 8aad381444..63ac3391fe 100644
--- a/screen/reports/src/main/java/com/ivy/reports/FilterOverlay.kt
+++ b/screen/reports/src/main/java/com/ivy/reports/FilterOverlay.kt
@@ -132,10 +132,16 @@ fun BoxWithConstraintsScope.FilterOverlay(
     var maxAmountModalShown by remember { mutableStateOf(false) }
     var includeKeywordModalShown by remember { mutableStateOf(false) }
     var excludeKeywordModalShown by remember { mutableStateOf(false) }
-    var tagModalVisible by remember { mutableStateOf(false) }
-    val selectedTags by remember(localFilter) {
+    var includedTagModalVisible by remember { mutableStateOf(false) }
+    var excludedTagModalVisible by remember { mutableStateOf(false) }
+    val includedTags by remember(localFilter) {
         derivedStateOf {
-            localFilter?.selectedTags?.toImmutableList() ?: persistentListOf()
+            localFilter?.includedTags?.toImmutableList() ?: persistentListOf()
+        }
+    }
+    val excludedTags by remember(localFilter) {
+        derivedStateOf {
+            localFilter?.excludedTags?.toImmutableList() ?: persistentListOf()
         }
     }
 
@@ -272,10 +278,13 @@ fun BoxWithConstraintsScope.FilterOverlay(
 
             FilterDivider()
 
-            OthersFilter(
+            TagsFilter(
                 filter = localFilter,
-                onTagButtonClick = {
-                    tagModalVisible = true
+                onIncludesTagButtonClick = {
+                    includedTagModalVisible = true
+                },
+                onExcludesTagButtonClick = {
+                    excludedTagModalVisible = true
                 }
             )
 
@@ -396,15 +405,49 @@ fun BoxWithConstraintsScope.FilterOverlay(
     }
 
     ShowTagModal(
-        visible = tagModalVisible,
+        visible = includedTagModalVisible,
+        selectOnlyMode = true,
+        onDismiss = {
+            includedTagModalVisible = false
+            // Reset TagList, avoids showing incorrect tag list if user had searched for a tag previously
+            onTagSearch("")
+        },
+        allTagList = allTags,
+        selectedTagList = includedTags,
+        onTagAdd = {
+            // Do Nothing
+        },
+        onTagEdit = { oldTag, newTag ->
+            // Do Nothing
+        },
+        onTagDelete = {
+            // Do Nothing
+        },
+        onTagSelected = {
+            localFilter = nonNullFilter(localFilter).copy(
+                includedTags = nonNullFilter(localFilter).includedTags.plus(it.id)
+            )
+        },
+        onTagDeSelected = {
+            localFilter = nonNullFilter(localFilter).copy(
+                includedTags = nonNullFilter(localFilter).includedTags.minus(it.id)
+            )
+        },
+        onTagSearch = {
+            onTagSearch(it)
+        }
+    )
+
+    ShowTagModal(
+        visible = excludedTagModalVisible,
         selectOnlyMode = true,
         onDismiss = {
-            tagModalVisible = false
+            excludedTagModalVisible = false
             // Reset TagList, avoids showing incorrect tag list if user had searched for a tag previously
             onTagSearch("")
         },
         allTagList = allTags,
-        selectedTagList = selectedTags,
+        selectedTagList = excludedTags,
         onTagAdd = {
             // Do Nothing
         },
@@ -416,12 +459,12 @@ fun BoxWithConstraintsScope.FilterOverlay(
         },
         onTagSelected = {
             localFilter = nonNullFilter(localFilter).copy(
-                selectedTags = nonNullFilter(localFilter).selectedTags.plus(it.id)
+                excludedTags = nonNullFilter(localFilter).excludedTags.plus(it.id)
             )
         },
         onTagDeSelected = {
             localFilter = nonNullFilter(localFilter).copy(
-                selectedTags = nonNullFilter(localFilter).selectedTags.minus(it.id)
+                excludedTags = nonNullFilter(localFilter).excludedTags.minus(it.id)
             )
         },
         onTagSearch = {
@@ -431,18 +474,45 @@ fun BoxWithConstraintsScope.FilterOverlay(
 }
 
 @Composable
-fun ColumnScope.OthersFilter(
+fun ColumnScope.TagsFilter(
     filter: ReportFilter?,
-    onTagButtonClick: () -> Unit,
+    onIncludesTagButtonClick: () -> Unit,
+    onExcludesTagButtonClick: () -> Unit,
+    @Suppress("UnusedParameter") modifier: Modifier = Modifier
 ) {
     FilterTitleText(
-        text = stringResource(R.string.others_optional),
+        text = stringResource(R.string.tags_optional),
         active = false
     )
 
+    Spacer(Modifier.height(12.dp))
+
+    Text(
+        modifier = Modifier.padding(start = 32.dp),
+        text = stringResource(R.string.includes_uppercase),
+        style = UI.typo.b2.style(
+            fontWeight = FontWeight.ExtraBold
+        )
+    )
+
+    TagFilter(
+        selectedTags = filter?.includedTags?.toImmutableList() ?: persistentListOf(),
+        onTagButtonClick = onIncludesTagButtonClick,
+    )
+
+    Spacer(Modifier.height(20.dp))
+
+    Text(
+        modifier = Modifier.padding(start = 32.dp),
+        text = stringResource(R.string.excludes_uppercase),
+        style = UI.typo.b2.style(
+            fontWeight = FontWeight.ExtraBold
+        )
+    )
+
     TagFilter(
-        selectedTags = filter?.selectedTags?.toImmutableList() ?: persistentListOf(),
-        onTagButtonClick = onTagButtonClick,
+        selectedTags = filter?.excludedTags?.toImmutableList() ?: persistentListOf(),
+        onTagButtonClick = onExcludesTagButtonClick,
     )
 }
 
@@ -452,14 +522,6 @@ fun ColumnScope.TagFilter(
     onTagButtonClick: () -> Unit,
     @Suppress("UnusedParameter") modifier: Modifier = Modifier
 ) {
-    Text(
-        modifier = Modifier.padding(start = 32.dp, top = 16.dp),
-        text = stringResource(R.string.tags),
-        style = UI.typo.b2.style(
-            fontWeight = FontWeight.ExtraBold
-        )
-    )
-
     Spacer(Modifier.height(12.dp))
 
     if (selectedTags.isEmpty()) {
diff --git a/screen/reports/src/main/java/com/ivy/reports/ReportFilter.kt b/screen/reports/src/main/java/com/ivy/reports/ReportFilter.kt
index 35c4abc52e..33bad9d880 100644
--- a/screen/reports/src/main/java/com/ivy/reports/ReportFilter.kt
+++ b/screen/reports/src/main/java/com/ivy/reports/ReportFilter.kt
@@ -18,7 +18,9 @@ data class ReportFilter(
     val maxAmount: Double?,
     val includeKeywords: List<String>,
     val excludeKeywords: List<String>,
-    val selectedTags: List<TagId>
+    val includedTags: List<TagId>,
+    val excludedTags: List<TagId>,
+
 ) {
     companion object {
         fun emptyFilter(
@@ -33,7 +35,8 @@ data class ReportFilter(
             excludeKeywords = emptyList(),
             minAmount = null,
             maxAmount = null,
-            selectedTags = emptyList()
+            includedTags = emptyList(),
+            excludedTags = emptyList()
         )
     }
 
diff --git a/screen/reports/src/main/java/com/ivy/reports/ReportViewModel.kt b/screen/reports/src/main/java/com/ivy/reports/ReportViewModel.kt
index 968c18ba27..0febff6874 100644
--- a/screen/reports/src/main/java/com/ivy/reports/ReportViewModel.kt
+++ b/screen/reports/src/main/java/com/ivy/reports/ReportViewModel.kt
@@ -111,9 +111,9 @@ class ReportViewModel @Inject constructor(
     private var overdueExpenses by mutableDoubleStateOf(0.0)
     private var history by mutableStateOf<ImmutableList<TransactionHistoryItem>>(persistentListOf())
     private var upcomingTransactions by
-        mutableStateOf<ImmutableList<LegacyTransaction>>(persistentListOf())
+    mutableStateOf<ImmutableList<LegacyTransaction>>(persistentListOf())
     private var overdueTransactions by
-        mutableStateOf<ImmutableList<LegacyTransaction>>(persistentListOf())
+    mutableStateOf<ImmutableList<LegacyTransaction>>(persistentListOf())
     private var accounts by mutableStateOf<ImmutableList<Account>>(persistentListOf())
     private var upcomingExpanded by mutableStateOf(false)
     private var overdueExpanded by mutableStateOf(false)
@@ -375,8 +375,8 @@ class ReportViewModel @Inject constructor(
         val filterRange =
             filter.period?.toRange(ivyContext.startDayOfMonth, timeConverter, timeProvider)
 
-        val transactions = if (filter.selectedTags.isNotEmpty()) {
-            tagRepository.findByAllAssociatedIdForTagId(filter.selectedTags)
+        val transactions = if (filter.includedTags.isNotEmpty()) {
+            tagRepository.findByAllAssociatedIdForTagId(filter.includedTags)
                 .asSequence()
                 .flatMap { it.value }
                 .map { TransactionId(it.associatedId.value) }
@@ -389,7 +389,24 @@ class ReportViewModel @Inject constructor(
             transactionRepository.findAll()
         }
 
+        val excludeableByTagTransactionsIds = if (filter.excludedTags.isNotEmpty()) {
+            tagRepository.findByAllAssociatedIdForTagId(filter.excludedTags)
+                .asSequence()
+                .flatMap { it.value }
+                .distinct()
+                .map { TransactionId(it.associatedId.value) }
+                .toList()
+                .let {
+                    transactionRepository.findByIds(it)
+                }.map {
+                    it.id
+                }
+        } else {
+            emptyList()
+        }
+
         return transactions
+            .filter { !excludeableByTagTransactionsIds.contains(it.id) }
             .filter {
                 with(transactionMapper) {
                     filter.trnTypes.contains(it.getTransactionType())
diff --git a/screen/reports/src/test/snapshots/images/com.ivy.report_ReportPaparazziTest_snapshot Report Screen no filter[Dark].png b/screen/reports/src/test/snapshots/images/com.ivy.report_ReportPaparazziTest_snapshot Report Screen no filter[Dark].png
index 1e8097f0fa..2cb02e579b 100644
Binary files a/screen/reports/src/test/snapshots/images/com.ivy.report_ReportPaparazziTest_snapshot Report Screen no filter[Dark].png and b/screen/reports/src/test/snapshots/images/com.ivy.report_ReportPaparazziTest_snapshot Report Screen no filter[Dark].png differ
diff --git a/screen/reports/src/test/snapshots/images/com.ivy.report_ReportPaparazziTest_snapshot Report Screen no filter[Light].png b/screen/reports/src/test/snapshots/images/com.ivy.report_ReportPaparazziTest_snapshot Report Screen no filter[Light].png
index f613991216..ed3f774020 100644
Binary files a/screen/reports/src/test/snapshots/images/com.ivy.report_ReportPaparazziTest_snapshot Report Screen no filter[Light].png and b/screen/reports/src/test/snapshots/images/com.ivy.report_ReportPaparazziTest_snapshot Report Screen no filter[Light].png differ
diff --git a/screen/reports/src/test/snapshots/images/com.ivy.report_ReportPaparazziTest_snapshot Report Screen[Dark].png b/screen/reports/src/test/snapshots/images/com.ivy.report_ReportPaparazziTest_snapshot Report Screen[Dark].png
index 284c34c880..9499ab9d66 100644
Binary files a/screen/reports/src/test/snapshots/images/com.ivy.report_ReportPaparazziTest_snapshot Report Screen[Dark].png and b/screen/reports/src/test/snapshots/images/com.ivy.report_ReportPaparazziTest_snapshot Report Screen[Dark].png differ
diff --git a/screen/reports/src/test/snapshots/images/com.ivy.report_ReportPaparazziTest_snapshot Report Screen[Light].png b/screen/reports/src/test/snapshots/images/com.ivy.report_ReportPaparazziTest_snapshot Report Screen[Light].png
index 1988435d01..3f1ded06c6 100644
Binary files a/screen/reports/src/test/snapshots/images/com.ivy.report_ReportPaparazziTest_snapshot Report Screen[Light].png and b/screen/reports/src/test/snapshots/images/com.ivy.report_ReportPaparazziTest_snapshot Report Screen[Light].png differ
diff --git a/shared/ui/core/src/main/res/values-de/strings.xml b/shared/ui/core/src/main/res/values-de/strings.xml
index b2fb198b0e..c5340a4a65 100644
--- a/shared/ui/core/src/main/res/values-de/strings.xml
+++ b/shared/ui/core/src/main/res/values-de/strings.xml
@@ -448,7 +448,7 @@
     <string name="decrease_loan">Verringern</string>
     <string name="msg_select_account_to_transfer">Wähle das Ziel für den Übertrag</string>
     <string name="msg_source_account_destination_account_same_for_transfer">Wählen ein anders Ziel-Konto für den Übertrag</string>
-    <string name="others_optional">Andere (optional)</string>
+    <string name="tags_optional">Tags (optional)</string>
     <string name="tags">Tags</string>
     <string name="search_tags">Tags durchsuchen</string>
     <string name="exchange_rates">Wechselkurse</string>
diff --git a/shared/ui/core/src/main/res/values-it/strings.xml b/shared/ui/core/src/main/res/values-it/strings.xml
index 3d5ea47da4..7265398c84 100644
--- a/shared/ui/core/src/main/res/values-it/strings.xml
+++ b/shared/ui/core/src/main/res/values-it/strings.xml
@@ -450,7 +450,7 @@
     <string name="decrease_loan">Diminuzione</string>
     <string name="msg_select_account_to_transfer">Seleziona la destinazione del trasferimento</string>
     <string name="msg_source_account_destination_account_same_for_transfer">Selezionare un altro conto come destinazione per il trasferimento</string>
-    <string name="others_optional">Altro (opzionale)</string>
+    <string name="tags_optional">Tags (optional)</string>
     <string name="tags">Etichette</string>
     <string name="search_tags">Tag di Ricerca</string>
     <string name="exchange_rates">Tassi di cambio</string>
diff --git a/shared/ui/core/src/main/res/values-pt-rBR/strings.xml b/shared/ui/core/src/main/res/values-pt-rBR/strings.xml
index dc1e8e1fc0..58661ec336 100644
--- a/shared/ui/core/src/main/res/values-pt-rBR/strings.xml
+++ b/shared/ui/core/src/main/res/values-pt-rBR/strings.xml
@@ -450,7 +450,7 @@
     <string name="decrease_loan">Diminuir</string>
     <string name="msg_select_account_to_transfer">Selecione o destino da transferência</string>
     <string name="msg_source_account_destination_account_same_for_transfer">Selecione uma conta de destino diferente para a transferência</string>
-    <string name="others_optional">Outro (opcional)</string>
+    <string name="tags_optional">Tags (optional)</string>
     <string name="tags">Tags</string>
     <string name="search_tags">Pesquisar Tags</string>
     <string name="exchange_rates">Taxas de câmbio</string>
diff --git a/shared/ui/core/src/main/res/values-vi/strings.xml b/shared/ui/core/src/main/res/values-vi/strings.xml
index 39e11f2f9a..11088cdee5 100644
--- a/shared/ui/core/src/main/res/values-vi/strings.xml
+++ b/shared/ui/core/src/main/res/values-vi/strings.xml
@@ -449,7 +449,7 @@
     <string name="decrease_loan">Giảm</string>
     <string name="msg_select_account_to_transfer">Chọn tài khoản đích</string>
     <string name="msg_source_account_destination_account_same_for_transfer">Chọn một tài khoản đích khác để chuyển</string>
-    <string name="others_optional">Khác (tùy chọn)</string>
+    <string name="tags_optional">Tags (optional)</string>
     <string name="tags">Thẻ</string>
     <string name="search_tags">Tìm thẻ</string>
     <string name="exchange_rates">Các tỷ giá hối đoái</string>
diff --git a/shared/ui/core/src/main/res/values-zh-rCN/strings.xml b/shared/ui/core/src/main/res/values-zh-rCN/strings.xml
index dcb0025bdc..6d83d63675 100644
--- a/shared/ui/core/src/main/res/values-zh-rCN/strings.xml
+++ b/shared/ui/core/src/main/res/values-zh-rCN/strings.xml
@@ -450,7 +450,7 @@
     <string name="decrease_loan">减少</string>
     <string name="msg_select_account_to_transfer">选择转账目标账户</string>
     <string name="msg_source_account_destination_account_same_for_transfer">请选择不同的目标账户进行转账</string>
-    <string name="others_optional">其他（可选）</string>
+    <string name="tags_optional">Tags (optional)</string>
     <string name="tags">标签</string>
     <string name="search_tags">搜索标签</string>
     <string name="exchange_rates">汇率</string>
diff --git a/shared/ui/core/src/main/res/values-zh-rTW/strings.xml b/shared/ui/core/src/main/res/values-zh-rTW/strings.xml
index cbad635d01..30db2b29cb 100644
--- a/shared/ui/core/src/main/res/values-zh-rTW/strings.xml
+++ b/shared/ui/core/src/main/res/values-zh-rTW/strings.xml
@@ -453,7 +453,7 @@
     <string name="decrease_loan">減少</string>
     <string name="msg_select_account_to_transfer">選擇傳輸目的地</string>
     <string name="msg_source_account_destination_account_same_for_transfer">選擇不同的目標帳戶進行轉帳</string>
-    <string name="others_optional">其他 (可選)</string>
+    <string name="tags_optional">Tags (optional)</string>
     <string name="tags">標籤</string>
     <string name="search_tags">搜尋標籤</string>
     <string name="exchange_rates">匯率</string>
diff --git a/shared/ui/core/src/main/res/values/strings.xml b/shared/ui/core/src/main/res/values/strings.xml
index 4b9184a7e1..8fb0dc95c0 100644
--- a/shared/ui/core/src/main/res/values/strings.xml
+++ b/shared/ui/core/src/main/res/values/strings.xml
@@ -453,7 +453,7 @@
     <string name="decrease_loan">Decrease</string>
     <string name="msg_select_account_to_transfer">Select the transfer destination</string>
     <string name="msg_source_account_destination_account_same_for_transfer">Select a different destination account for the transfer</string>
-    <string name="others_optional">Other (optional)</string>
+    <string name="tags_optional">Tags (optional)</string>
     <string name="tags">Tags</string>
     <string name="search_tags">Search Tags</string>
     <string name="exchange_rates">Exchange rates</string>