A system and method for categorizing data objects with designation tools. A designation tool is provided for categorizing data in an electronic document. A user may select a designation tool corresponding to a data category with which to categorize data to be inputted into an electronic document. The data category is displayed in association with the data entered with the designation tool. The designation tool may also be used to categorize existing data content in an electronic document. Data that is selected with a designation tool is categorized into the data category associated with that designation tool.