Quick answer: Use both. Folders give each file one home that other apps understand. Tags describe topics, so a file can belong to several categories without being copied. Keep a shallow folder structure and a small set of useful tags. Tag+ in Productivity Plus Pack adds tagging and indexed search filters to File Explorer.

The question every file system runs into

Where do you save the invoice for the kitchen renovation? In Invoices? In House\Kitchen? In 2026? With folders, you have to pick one — and six months later you'll look in the other two first.

Notes apps like Obsidian and email like Gmail made this debate familiar. On Windows, the same question applies to your documents, photos and projects.

What folders are good at

Their weakness is that a file can only be in one place. The moment a file belongs to two categories, a folder system forces a choice — or a copy that soon gets out of date.

What tags are good at

Their weaknesses are real too: tags only help if you apply them consistently, and not every app or file type understands them. In Windows, only some file types can be tagged at all — see How to tag PDFs, documents and more in Windows.

Side by side

FoldersTags
A file can belong toOne folderMany tags
Finding filesBrowse to the right placeFilter or search from anywhere
Works in every appYesDepends on the app and file type
Survives copying anywhereYesTags stored inside the file do; others may not
Effort to maintainPick a place when savingTag when saving — or let AI help
Best forWhere a file lives: projects, years, archivesWhat a file is about: topics, status, people

The answer: use both

The most practical system keeps a simple, shallow folder structure for where files live, and uses tags for what they're about. A few habits make it work:

  1. Keep folders broad: by project, area or year. Resist nesting them five levels deep.
  2. Start with a handful of tags you'll really use, like Invoice, Important and To do, and add more when you need them.
  3. Use ratings for quality and tags for topics, instead of tags like Best.
  4. Let search do the rest: file names, dates, comments and tags are all searchable.

Making tags practical on Windows

Tag+ from Productivity Plus Pack brings tags into File Explorer alongside your folders:

Step by step: How to organize files with tags instead of folders.