diff --git a/src/lib/actions/categoryCreateUpdate.ts b/src/lib/actions/categoryCreateUpdate.ts
new file mode 100644
index 0000000..4248bd3
--- /dev/null
+++ b/src/lib/actions/categoryCreateUpdate.ts
@@ -0,0 +1,65 @@
+import { z } from 'zod';
+import { ActionResponse } from '@/lib/types/ActionResponse';
+import { prismaClient } from '@/prisma';
+import { getUser } from '@/auth';
+import { URL_SIGN_IN } from '@/lib/constants';
+import { categoryFormSchema } from '@/lib/form-schemas/categoryFormSchema';
+
+export default async function categoryCreateUpdate({
+    id,
+    name,
+    color,
+}: z.infer<typeof categoryFormSchema>): Promise<ActionResponse> {
+    'use server';
+
+    // check that user is logged in
+    const user = await getUser();
+    if (!user) {
+        return {
+            type: 'error',
+            message: 'You must be logged in to create/update an category.',
+            redirect: URL_SIGN_IN,
+        };
+    }
+
+    // create/update category
+    try {
+        if (id) {
+            await prismaClient.category.update({
+                    where: {
+                        id: id,
+                    },
+                    data: {
+                        name: name,
+                        color: color,
+                    },
+                },
+            );
+
+            // return success
+            return {
+                type: 'success',
+                message: `'${name}' updated`,
+            };
+        } else {
+            await prismaClient.category.create({
+                data: {
+                    userId: user.id,
+                    name: name,
+                    color: color,
+                },
+            });
+
+            // return success
+            return {
+                type: 'success',
+                message: `'${name}' created`,
+            };
+        }
+    } catch (e) {
+        return {
+            type: 'error',
+            message: 'Failed creating/updating category',
+        };
+    }
+}
diff --git a/src/lib/actions/categoryDelete.ts b/src/lib/actions/categoryDelete.ts
new file mode 100644
index 0000000..1a7f55b
--- /dev/null
+++ b/src/lib/actions/categoryDelete.ts
@@ -0,0 +1,62 @@
+import { ActionResponse } from '@/lib/types/ActionResponse';
+import { prismaClient } from '@/prisma';
+import { getUser } from '@/auth';
+import { URL_SIGN_IN } from '@/lib/constants';
+
+export default async function categoryDelete(id: number): Promise<ActionResponse> {
+    'use server';
+
+    // check that id is a number
+    if (!id || isNaN(id)) {
+        return {
+            type: 'error',
+            message: 'Invalid category ID',
+        };
+    }
+
+    // check that user is logged in
+    const user = await getUser();
+    if (!user) {
+        return {
+            type: 'error',
+            message: 'You must be logged in to delete an category.',
+            redirect: URL_SIGN_IN,
+        };
+    }
+
+    // check that category is associated with user
+    const category = await prismaClient.category.findFirst({
+        where: {
+            id: id,
+            userId: user.id,
+        },
+    });
+    if (!category) {
+        return {
+            type: 'error',
+            message: 'Category not found',
+        };
+    }
+
+    // delete category
+    try {
+        await prismaClient.category.delete({
+                where: {
+                    id: category.id,
+                    userId: user.id,
+                },
+            },
+        );
+    } catch (e) {
+        return {
+            type: 'error',
+            message: 'Failed deleting category',
+        };
+    }
+
+    // return success
+    return {
+        type: 'success',
+        message: `'${category.name}' deleted`,
+    };
+}
diff --git a/src/lib/form-schemas/categoryFormSchema.ts b/src/lib/form-schemas/categoryFormSchema.ts
new file mode 100644
index 0000000..256ad89
--- /dev/null
+++ b/src/lib/form-schemas/categoryFormSchema.ts
@@ -0,0 +1,11 @@
+import { z } from 'zod';
+
+export const categoryFormSchema = z.object({
+    id: z.number().positive().optional(),
+    name: z.string().min(1).max(32),
+    color: z.string()
+        .min(7)
+        .max(7)
+        .startsWith('#')
+        .refine(value => value.split('#')[1].match(/^[0-9a-fA-F]{6}$/)),
+});