diff --git a/app/models/rule/condition_filter/transaction_type.rb b/app/models/rule/condition_filter/transaction_type.rb
new file mode 100644
index 000000000..4c852d236
--- /dev/null
+++ b/app/models/rule/condition_filter/transaction_type.rb
@@ -0,0 +1,42 @@
+class Rule::ConditionFilter::TransactionType < Rule::ConditionFilter
+  # Transfer kinds matching Transaction#transfer? method
+  TRANSFER_KINDS = %w[funds_movement cc_payment loan_payment].freeze
+
+  def type
+    "select"
+  end
+
+  def options
+    [
+      [ I18n.t("rules.condition_filters.transaction_type.income"), "income" ],
+      [ I18n.t("rules.condition_filters.transaction_type.expense"), "expense" ],
+      [ I18n.t("rules.condition_filters.transaction_type.transfer"), "transfer" ]
+    ]
+  end
+
+  def operators
+    [ [ I18n.t("rules.condition_filters.transaction_type.equal_to"), "=" ] ]
+  end
+
+  def prepare(scope)
+    scope.with_entry
+  end
+
+  def apply(scope, operator, value)
+    # Logic matches Transaction::Search#apply_type_filter for consistency
+    case value
+    when "income"
+      # Negative amounts, excluding transfers and investment_contribution
+      scope.where("entries.amount < 0")
+           .where.not(kind: TRANSFER_KINDS + %w[investment_contribution])
+    when "expense"
+      # Positive amounts OR investment_contribution (regardless of sign), excluding transfers
+      scope.where("entries.amount >= 0 OR transactions.kind = 'investment_contribution'")
+           .where.not(kind: TRANSFER_KINDS)
+    when "transfer"
+      scope.where(kind: TRANSFER_KINDS)
+    else
+      scope
+    end
+  end
+end
diff --git a/app/models/rule/registry/transaction_resource.rb b/app/models/rule/registry/transaction_resource.rb
index fac1d6667..3e0117fc7 100644
--- a/app/models/rule/registry/transaction_resource.rb
+++ b/app/models/rule/registry/transaction_resource.rb
@@ -7,6 +7,7 @@ class Rule::Registry::TransactionResource < Rule::Registry
     [
       Rule::ConditionFilter::TransactionName.new(rule),
       Rule::ConditionFilter::TransactionAmount.new(rule),
+      Rule::ConditionFilter::TransactionType.new(rule),
       Rule::ConditionFilter::TransactionMerchant.new(rule),
       Rule::ConditionFilter::TransactionCategory.new(rule),
       Rule::ConditionFilter::TransactionDetails.new(rule),
diff --git a/config/locales/views/rules/en.yml b/config/locales/views/rules/en.yml
index 5cbd252d5..905dca236 100644
--- a/config/locales/views/rules/en.yml
+++ b/config/locales/views/rules/en.yml
@@ -37,3 +37,9 @@ en:
         pending: Pending
         success: Success
         failed: Failed
+    condition_filters:
+      transaction_type:
+        income: Income
+        expense: Expense
+        transfer: Transfer
+        equal_to: Equal to
diff --git a/test/models/rule/condition_test.rb b/test/models/rule/condition_test.rb
index 353963629..774e77812 100644
--- a/test/models/rule/condition_test.rb
+++ b/test/models/rule/condition_test.rb
@@ -331,4 +331,171 @@ class Rule::ConditionTest < ActiveSupport::TestCase
     assert_equal 4, filtered.count
     assert_not filtered.map(&:id).include?(transaction_entry.transaction.id)
   end
+
+  test "applies transaction_type condition for income" do
+    scope = @rule_scope
+
+    condition = Rule::Condition.new(
+      rule: @transaction_rule,
+      condition_type: "transaction_type",
+      operator: "=",
+      value: "income"
+    )
+
+    scope = condition.prepare(scope)
+    filtered = condition.apply(scope)
+
+    # transaction2 has amount -200 (income)
+    assert_equal 1, filtered.count
+    assert filtered.all? { |t| t.entry.amount.negative? }
+  end
+
+  test "applies transaction_type condition for expense" do
+    scope = @rule_scope
+
+    condition = Rule::Condition.new(
+      rule: @transaction_rule,
+      condition_type: "transaction_type",
+      operator: "=",
+      value: "expense"
+    )
+
+    scope = condition.prepare(scope)
+    filtered = condition.apply(scope)
+
+    # transaction1, 3, 4, 5 have positive amounts (expenses)
+    assert_equal 4, filtered.count
+    assert filtered.all? { |t| t.entry.amount.positive? && !t.transfer? }
+  end
+
+  test "applies transaction_type condition for transfer" do
+    scope = @rule_scope
+
+    # Create a transfer transaction
+    transfer_entry = create_transaction(
+      date: Date.current,
+      account: @account,
+      amount: 500,
+      name: "Transfer to savings"
+    )
+    transfer_entry.transaction.update!(kind: "funds_movement")
+
+    condition = Rule::Condition.new(
+      rule: @transaction_rule,
+      condition_type: "transaction_type",
+      operator: "=",
+      value: "transfer"
+    )
+
+    scope = condition.prepare(scope)
+    filtered = condition.apply(scope)
+
+    assert_equal 1, filtered.count
+    assert_equal transfer_entry.transaction.id, filtered.first.id
+    assert filtered.first.transfer?
+  end
+
+  test "transaction_type expense excludes transfers" do
+    scope = @rule_scope
+
+    # Create a transfer with positive amount (would look like expense)
+    transfer_entry = create_transaction(
+      date: Date.current,
+      account: @account,
+      amount: 500,
+      name: "Transfer to savings"
+    )
+    transfer_entry.transaction.update!(kind: "funds_movement")
+
+    condition = Rule::Condition.new(
+      rule: @transaction_rule,
+      condition_type: "transaction_type",
+      operator: "=",
+      value: "expense"
+    )
+
+    scope = condition.prepare(scope)
+    filtered = condition.apply(scope)
+
+    # Should NOT include the transfer even though it has positive amount
+    assert_not filtered.map(&:id).include?(transfer_entry.transaction.id)
+  end
+
+  test "transaction_type income excludes transfers" do
+    scope = @rule_scope
+
+    # Create a transfer inflow (negative amount)
+    transfer_entry = create_transaction(
+      date: Date.current,
+      account: @account,
+      amount: -500,
+      name: "Transfer from savings"
+    )
+    transfer_entry.transaction.update!(kind: "funds_movement")
+
+    condition = Rule::Condition.new(
+      rule: @transaction_rule,
+      condition_type: "transaction_type",
+      operator: "=",
+      value: "income"
+    )
+
+    scope = condition.prepare(scope)
+    filtered = condition.apply(scope)
+
+    # Should NOT include the transfer even though it has negative amount
+    assert_not filtered.map(&:id).include?(transfer_entry.transaction.id)
+  end
+
+  test "transaction_type expense includes investment_contribution regardless of amount sign" do
+    scope = @rule_scope
+
+    # Create investment contribution with negative amount (inflow from provider)
+    contribution_entry = create_transaction(
+      date: Date.current,
+      account: @account,
+      amount: -1000,
+      name: "401k contribution"
+    )
+    contribution_entry.transaction.update!(kind: "investment_contribution")
+
+    condition = Rule::Condition.new(
+      rule: @transaction_rule,
+      condition_type: "transaction_type",
+      operator: "=",
+      value: "expense"
+    )
+
+    scope = condition.prepare(scope)
+    filtered = condition.apply(scope)
+
+    # Should include investment_contribution even with negative amount
+    assert filtered.map(&:id).include?(contribution_entry.transaction.id)
+  end
+
+  test "transaction_type income excludes investment_contribution" do
+    scope = @rule_scope
+
+    # Create investment contribution with negative amount
+    contribution_entry = create_transaction(
+      date: Date.current,
+      account: @account,
+      amount: -1000,
+      name: "401k contribution"
+    )
+    contribution_entry.transaction.update!(kind: "investment_contribution")
+
+    condition = Rule::Condition.new(
+      rule: @transaction_rule,
+      condition_type: "transaction_type",
+      operator: "=",
+      value: "income"
+    )
+
+    scope = condition.prepare(scope)
+    filtered = condition.apply(scope)
+
+    # Should NOT include investment_contribution even with negative amount
+    assert_not filtered.map(&:id).include?(contribution_entry.transaction.id)
+  end
 end