How to Create Folders in Gmail

Gmail does not use traditional folders the way Outlook does. Instead, Gmail uses labels — a tagging system that lets you assign one or more categories to any email without moving it out of your inbox. Labels appear in your left sidebar and function like clickable folders, but with significantly more flexibility. You can apply multiple labels to a single message, nest labels inside other labels to create subfolder structures, and automatically assign labels to incoming emails using Gmail filters. This guide covers how to create labels in Gmail, how to apply them manually and automatically, how they compare to Outlook folders, and practical ideas for organizing your inbox.

What Are Gmail Labels and How Do They Work?

Gmail labels are Gmail’s equivalent of Outlook folders. Outlook calls them “folders” while Gmail calls them “labels,” but they serve the same organizational purpose. You can create as many labels as you want, and each one assigns a category or meaning to an email. For example, you could create a label for “Marketing” emails and another for “Legacy Client” correspondence.

The key difference from folders: you can assign multiple labels to a single message, or leave some messages completely unlabeled. You can also nest labels, creating sublabels that function as subfolders within a parent label. When created, your labels appear in the left-hand sidebar. Clicking a label displays all emails tagged with that label — essentially the same experience as opening a folder.

How Do You Create Folders (Labels) in Gmail?

Step 1: Open Settings. Click the gear icon in the upper-right corner of Gmail and select “See all settings.”

Step 2: Go to the Labels tab. The second tab from the left is “Labels,” where you can manage existing labels and create new ones.

Step 3: Create a new label. Scroll past “System labels” and “Categories” to the “Labels” section at the bottom. Click “Create new label” and name your label. You will also see a “Nest label under” option — checking this box lets you select an existing label from a dropdown menu and place your new label underneath it as a sublabel (subfolder).

Once you create labels, you can manage them from the same Settings menu. You can choose to show a label by default, hide it by default, or show it only when it has unread messages. You can edit or remove labels at any time. Removing a label does not delete the emails tagged with it — only the label itself is removed.

How Do You Apply Labels to Existing Gmail Messages?

Step 1: Open the email and click the tag icon. With the email open, look for the tag-like icon in the top row of icons. Click it to open the label menu.

Step 2: Select your labels. Check any labels you want to apply to the message. You can apply multiple labels at once. The submenu also includes a search bar for finding labels by name, a “Create new” option for creating labels on the fly, and a “Manage labels” shortcut that takes you directly to the Settings menu.

You can label and relabel emails at any time. You can also label outgoing (Sent) emails: when composing an email, click the vertical ellipses in the lower-right corner of the Compose window to access the same label submenu.

How Do You Apply Gmail Labels Automatically with Filters?

Gmail filters let you automatically apply labels to incoming emails based on criteria you define. You can create filters within the Settings menu or by using the search bar and saving your search criteria as a filter. For a complete walkthrough, see our complete guide on Gmail filters.

As a basic example: you could enter several email addresses in the “From” field that belong to one of your clients. When satisfied with the search parameters, click “Create filter.”

On the next screen, check the box next to “Apply the label” and choose which label to assign. In this example, you would select your “Client A” label.

You can use many different search parameters (sender, subject, keywords, size, attachment status) individually or in combination to create complex filters. When you save the filter, it automatically applies your label to all new incoming emails that match the criteria. Note that filters do not apply retroactively to existing emails — to label older messages, you need to apply labels manually.

How Are Gmail Labels Better Than Outlook Folders?

Multiple label assignment. The biggest advantage of Gmail labels is that you can apply multiple labels to a single email. Labels function as a tagging system rather than a relocation system. With Outlook folders, you must move an email to one folder. If you want it in multiple folders, you have to copy the email — wasting time and creating unnecessary duplicates. With Gmail labels, you can apply as many or as few tags as needed per message.

Searchability. Gmail labels are significantly more searchable than Outlook folders. You can search for one or more labels simultaneously using Gmail search operators and find your desired messages with a single search. With Outlook folders, you either search the content of a specific message or manually dig through folders until you find the right one.

Core inbox retention. Applying a label does not permanently alter your inbox view. Moving an email to an Outlook folder removes it from its original position, which eliminates immediate visibility and can disrupt your perception of email timing and organization. With Gmail labels, you can group emails however you want while your core inbox view stays intact — at least until you start archiving or deleting.

What Are the Best Ideas for Gmail Labels?

Clients. Use filters based on specific contacts or entire email domains to automatically label emails by client. This is one of the most common and immediately useful label structures for professionals managing multiple client relationships.

Projects. Apply labels to different projects, either manually or by creating filters for keywords in the subject line or email body. This works well for cross-functional projects where emails come from multiple senders.

Urgency levels or due dates. Labels based on urgency can be helpful, though levels of urgency often change. You might also create labels grouped by due date (weekly labels to keep yourself on task). For simpler urgency tracking, Gmail’s built-in stars and “important” markers may be more practical since they toggle on and off quickly.

Attachment types. If you want to keep certain types of attachments grouped together — videos, invoices, spreadsheets — you can apply labels to the emails containing them. This makes it easy to locate specific files later without searching through your entire inbox.

Memos and updates. A “Memos” or “Updates” label helps you track messages you will need to reference regularly in the future. The value of this label increases over time as your archive of reference material grows.

Notifications. Gmail automatically groups notification emails using the “Social,” “Updates,” and “Forums” categories. However, you may want more control over how these messages are organized. Creating custom notification labels lets you separate the notifications that matter from the ones that do not.