diff --git a/app/javascript/controllers/rule/conditions_controller.js b/app/javascript/controllers/rule/conditions_controller.js
index 1a20d00da..2999ca0d9 100644
--- a/app/javascript/controllers/rule/conditions_controller.js
+++ b/app/javascript/controllers/rule/conditions_controller.js
@@ -11,6 +11,11 @@ export default class extends Controller {
     "subConditionsList",
   ];
 
+  connect() {
+    // Hide value field on initial load if operator is "is_null"
+    this.#toggleValueFieldVisibility();
+  }
+
   addSubCondition() {
     const html = this.subConditionTemplateTarget.innerHTML.replaceAll(
       "IDX_CHILD_PLACEHOLDER",
@@ -52,6 +57,11 @@ export default class extends Controller {
     }
 
     this.#updateOperatorsField(conditionFilter);
+    this.#toggleValueFieldVisibility();
+  }
+
+  handleOperatorChange(e) {
+    this.#toggleValueFieldVisibility();
   }
 
   get valueInputEl() {
@@ -112,4 +122,18 @@ export default class extends Controller {
   #uniqueKey() {
     return Date.now();
   }
+
+  #toggleValueFieldVisibility() {
+    const operator = this.operatorSelectTarget.value;
+
+    if (operator === "is_null") {
+      this.filterValueTarget.classList.add("hidden");
+      // Clear the value since it's not needed
+      if (this.valueInputEl) {
+        this.valueInputEl.value = "";
+      }
+    } else {
+      this.filterValueTarget.classList.remove("hidden");
+    }
+  }
 }
diff --git a/app/models/rule/condition.rb b/app/models/rule/condition.rb
index b10d30ca8..ab5138cba 100644
--- a/app/models/rule/condition.rb
+++ b/app/models/rule/condition.rb
@@ -6,7 +6,7 @@ class Rule::Condition < ApplicationRecord
 
   validates :condition_type, presence: true
   validates :operator, presence: true
-  validates :value, presence: true, unless: -> { compound? }
+  validates :value, presence: true, unless: -> { compound? || operator == "is_null" }
 
   accepts_nested_attributes_for :sub_conditions, allow_destroy: true
 
diff --git a/app/models/rule/condition_filter.rb b/app/models/rule/condition_filter.rb
index 86d40ea20..6fa463a50 100644
--- a/app/models/rule/condition_filter.rb
+++ b/app/models/rule/condition_filter.rb
@@ -4,9 +4,9 @@ class Rule::ConditionFilter
   TYPES = [ "text", "number", "select" ]
 
   OPERATORS_MAP = {
-    "text" => [ [ "Contains", "like" ], [ "Equal to", "=" ] ],
+    "text" => [ [ "Contains", "like" ], [ "Equal to", "=" ], [ "Is empty", "is_null" ] ],
     "number" => [ [ "Greater than", ">" ], [ "Greater or equal to", ">=" ], [ "Less than", "<" ], [ "Less than or equal to", "<=" ], [ "Is equal to", "=" ] ],
-    "select" => [ [ "Equal to", "=" ] ]
+    "select" => [ [ "Equal to", "=" ], [ "Is empty", "is_null" ] ]
   }
 
   def initialize(rule)
@@ -67,19 +67,28 @@ class Rule::ConditionFilter
     end
 
     def build_sanitized_where_condition(field, operator, value)
-      sanitized_value = operator == "like" ? "%#{ActiveRecord::Base.sanitize_sql_like(value)}%" : value
+      if operator == "is_null"
+        ActiveRecord::Base.sanitize_sql_for_conditions(
+          "#{field} #{sanitize_operator(operator)}"
+        )
+      else
+        sanitized_value = operator == "like" ? "%#{ActiveRecord::Base.sanitize_sql_like(value)}%" : value
 
-      ActiveRecord::Base.sanitize_sql_for_conditions([
-        "#{field} #{sanitize_operator(operator)} ?",
-        sanitized_value
-      ])
+        ActiveRecord::Base.sanitize_sql_for_conditions([
+          "#{field} #{sanitize_operator(operator)} ?",
+          sanitized_value
+        ])
+      end
     end
 
     def sanitize_operator(operator)
       raise UnsupportedOperatorError, "Unsupported operator: #{operator} for type: #{type}" unless operators.map(&:last).include?(operator)
 
-      if operator == "like"
+      case operator
+      when "like"
         "ILIKE"
+      when "is_null"
+        "IS NULL"
       else
         operator
       end
diff --git a/app/models/rule/condition_filter/transaction_category.rb b/app/models/rule/condition_filter/transaction_category.rb
new file mode 100644
index 000000000..71f87bbdf
--- /dev/null
+++ b/app/models/rule/condition_filter/transaction_category.rb
@@ -0,0 +1,18 @@
+class Rule::ConditionFilter::TransactionCategory < Rule::ConditionFilter
+  def type
+    "select"
+  end
+
+  def options
+    family.categories.alphabetically.pluck(:name, :id)
+  end
+
+  def prepare(scope)
+    scope.left_joins(:category)
+  end
+
+  def apply(scope, operator, value)
+    expression = build_sanitized_where_condition("categories.id", operator, value)
+    scope.where(expression)
+  end
+end
diff --git a/app/models/rule/registry/transaction_resource.rb b/app/models/rule/registry/transaction_resource.rb
index d00f2b1ea..115a747fd 100644
--- a/app/models/rule/registry/transaction_resource.rb
+++ b/app/models/rule/registry/transaction_resource.rb
@@ -7,7 +7,8 @@ class Rule::Registry::TransactionResource < Rule::Registry
     [
       Rule::ConditionFilter::TransactionName.new(rule),
       Rule::ConditionFilter::TransactionAmount.new(rule),
-      Rule::ConditionFilter::TransactionMerchant.new(rule)
+      Rule::ConditionFilter::TransactionMerchant.new(rule),
+      Rule::ConditionFilter::TransactionCategory.new(rule)
     ]
   end
 
diff --git a/app/views/rule/conditions/_condition.html.erb b/app/views/rule/conditions/_condition.html.erb
index 60c38eab2..84eff713d 100644
--- a/app/views/rule/conditions/_condition.html.erb
+++ b/app/views/rule/conditions/_condition.html.erb
@@ -20,7 +20,7 @@
       <%= form.select :condition_type, rule.condition_filters.map { |filter| [ filter.label, filter.key ] }, {}, data: { action: "rule--conditions#handleConditionTypeChange" } %>
     </div>
 
-    <%= form.select :operator, condition.operators, { container_class: "w-fit min-w-36" }, data: { rule__conditions_target: "operatorSelect" } %>
+    <%= form.select :operator, condition.operators, { container_class: "w-fit min-w-36" }, data: { rule__conditions_target: "operatorSelect", action: "rule--conditions#handleOperatorChange" } %>
 
     <div data-rule--conditions-target="filterValue" class="grow">
       <% if condition.filter.type == "select" %>
diff --git a/test/models/rule/condition_test.rb b/test/models/rule/condition_test.rb
index 3010673d9..2fbfb375d 100644
--- a/test/models/rule/condition_test.rb
+++ b/test/models/rule/condition_test.rb
@@ -125,4 +125,61 @@ class Rule::ConditionTest < ActiveSupport::TestCase
     filtered = parent_condition.apply(scope)
     assert_equal 2, filtered.count
   end
+
+  test "applies transaction_category condition" do
+    scope = @rule_scope
+
+    # Set category for one transaction
+    @account.transactions.first.update!(category: @grocery_category)
+
+    condition = Rule::Condition.new(
+      rule: @transaction_rule,
+      condition_type: "transaction_category",
+      operator: "=",
+      value: @grocery_category.id
+    )
+
+    scope = condition.prepare(scope)
+    filtered = condition.apply(scope)
+
+    assert_equal 1, filtered.count
+    assert_equal @grocery_category.id, filtered.first.category_id
+  end
+
+  test "applies is_null condition for transaction_category" do
+    scope = @rule_scope
+
+    # Set category for one transaction
+    @account.transactions.first.update!(category: @grocery_category)
+
+    condition = Rule::Condition.new(
+      rule: @transaction_rule,
+      condition_type: "transaction_category",
+      operator: "is_null",
+      value: nil
+    )
+
+    scope = condition.prepare(scope)
+    filtered = condition.apply(scope)
+
+    assert_equal 4, filtered.count
+    assert filtered.all? { |t| t.category_id.nil? }
+  end
+
+  test "applies is_null condition for transaction_merchant" do
+    scope = @rule_scope
+
+    condition = Rule::Condition.new(
+      rule: @transaction_rule,
+      condition_type: "transaction_merchant",
+      operator: "is_null",
+      value: nil
+    )
+
+    scope = condition.prepare(scope)
+    filtered = condition.apply(scope)
+
+    assert_equal 3, filtered.count
+    assert filtered.all? { |t| t.merchant_id.nil? }
+  end
 end