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The phrase "categories based on" is correct and can be used in written English.
It can be used any time you need to introduce two or more distinct groups of people, things, or ideas. For example, "Thanksgiving meals can be divided into categories based on what is served."
Exact(60)
Ultimately, patients were placed into one of two categories based on their response to all boluses.
Google will assign those users to categories based on the content of the pages they visit.
These workers fell into two basic categories, based on their quality and their strength.
We separate and divide people into social categories based on race, ethnicity, gender and creed.
The state's Megan's Law divides convicted sex offenders into three categories based on the perceived danger they present.
Athletes formerly competed in different categories based on the severity of their blindness.
Manual wheelchairs can be divided into numerous categories based on their intended use and design.
On these we did find evidence for categories based on sex.
The health care law classifies insurance into several categories, based on the generosity of coverage.
New York soils can be grouped into categories based on their parent material.
They conventionally are subdivided into categories based on mode of genesis.
More suggestions(18)
orders based on
divisions based on
professionals based on
tiers based on
frames based on
constituencies based on
titles based on
subjects based on
grades based on
section based on
classification based on
professional based on
category based on
title based on
frame based on
tier based on
grade based on
gender based on
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Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com