If you have been working on a demo store – or yours is still in the early stages of construction, you will probably find it necessary to remove all the categories to start fresh at some point

So here is the code to delete all categories in magento, Run these queries in database

TRUNCATE TABLE `catalog_category_entity`;
    TRUNCATE TABLE `catalog_category_entity_datetime`;
    TRUNCATE TABLE `catalog_category_entity_decimal`;
    TRUNCATE TABLE `catalog_category_entity_int`;
    TRUNCATE TABLE `catalog_category_entity_text`;
    TRUNCATE TABLE `catalog_category_entity_varchar`;
    TRUNCATE TABLE `catalog_category_product`;
    TRUNCATE TABLE `catalog_category_product_index`;
 
    insert  into `catalog_category_entity`(`entity_id`,`entity_type_id`,`attribute_set_id`,`parent_id`,`created_at`,`updated_at`,`path`,`position`,`level`,`children_count`) values (1,3,0,0,'0000-00-00 00:00:00','2009-02-20 00:25:34','1',1,0,1),(2,3,3,0,'2009-02-20 00:25:34','2009-02-20 00:25:34','1/2',1,1,0);
    insert  into `catalog_category_entity_int`(`value_id`,`entity_type_id`,`attribute_id`,`store_id`,`entity_id`,`value`) values (1,3,32,0,2,1),(2,3,32,1,2,1);
    insert  into `catalog_category_entity_varchar`(`value_id`,`entity_type_id`,`attribute_id`,`store_id`,`entity_id`,`value`) values (1,3,31,0,1,'Root Catalog'),(2,3,33,0,1,'root-catalog'),(3,3,31,0,2,'Default Category'),(4,3,39,0,2,'PRODUCTS'),(5,3,33,0,2,'default-category');

Detailed documentation can be found at Magento Wiki

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