diff --git a/internal/handler/space.go b/internal/handler/space.go
index 82cc08b..fa19015 100644
--- a/internal/handler/space.go
+++ b/internal/handler/space.go
@@ -1607,6 +1607,50 @@ func (h *spaceHandler) HandleEditTransaction(w http.ResponseWriter, r *http.Requ
 	w.WriteHeader(http.StatusOK)
 }
 
+func (h *spaceHandler) HandleDeleteTransaction(w http.ResponseWriter, r *http.Request) {
+	spaceID := r.PathValue("spaceID")
+	accountID := r.PathValue("accountID")
+	transactionID := r.PathValue("transactionID")
+
+	account, err := h.accountService.GetAccount(accountID)
+	if err != nil || account.SpaceID != spaceID {
+		ui.RenderError(w, r, "Account not found", http.StatusNotFound)
+		return
+	}
+
+	txn, err := h.transactionService.GetTransaction(transactionID)
+	if err != nil || txn.AccountID != accountID {
+		ui.RenderError(w, r, "Transaction not found", http.StatusNotFound)
+		return
+	}
+
+	actorID := ""
+	if u := ctxkeys.User(r.Context()); u != nil {
+		actorID = u.ID
+	}
+
+	if _, err := h.transactionService.DeleteTransaction(service.DeleteTransactionInput{
+		TransactionID: transactionID,
+		ActorID:       actorID,
+	}); err != nil {
+		if errors.Is(err, service.ErrTransactionPartOfTransfer) {
+			ui.RenderError(w, r, "Transfer transactions cannot be deleted.", http.StatusBadRequest)
+			return
+		}
+		slog.Error("failed to delete transaction", "error", err, "transaction_id", transactionID)
+		ui.RenderError(w, r, "Failed to delete transaction", http.StatusInternalServerError)
+		return
+	}
+
+	redirectTo := routeurl.URL(
+		"page.app.spaces.space.accounts.account.overview",
+		"spaceID", spaceID,
+		"accountID", accountID,
+	)
+	w.Header().Set("HX-Redirect", redirectTo)
+	w.WriteHeader(http.StatusOK)
+}
+
 func (h *spaceHandler) SpaceCreateTransferPage(w http.ResponseWriter, r *http.Request) {
 	spaceID := r.PathValue("spaceID")
 	accountID := r.PathValue("accountID")
diff --git a/internal/repository/transaction.go b/internal/repository/transaction.go
index d304664..fb1d63c 100644
--- a/internal/repository/transaction.go
+++ b/internal/repository/transaction.go
@@ -14,6 +14,7 @@ type TransactionRepository interface {
 	CreateDepositAtomic(t *model.Transaction, newBalance decimal.Decimal) error
 	UpdateBillAtomic(t *model.Transaction, newBalance decimal.Decimal, categoryID *string) error
 	UpdateDepositAtomic(t *model.Transaction, newBalance decimal.Decimal) error
+	DeleteAtomic(transactionID, accountID string, newBalance decimal.Decimal) error
 	TransferAtomic(withdrawal, deposit *model.Transaction, sourceNewBalance, destNewBalance decimal.Decimal) error
 	GetByID(id string) (*model.Transaction, error)
 	GetCategoryID(transactionID string) (*string, error)
@@ -141,6 +142,23 @@ func (r *transactionRepository) UpdateDepositAtomic(t *model.Transaction, newBal
 	})
 }
 
+// DeleteAtomic removes a standalone (non-transfer) transaction and reverses
+// its effect on the account balance in a single SQL transaction. The caller is
+// responsible for computing the new balance — bills credit it back, deposits
+// debit it. transaction_categories is removed via ON DELETE CASCADE.
+func (r *transactionRepository) DeleteAtomic(transactionID, accountID string, newBalance decimal.Decimal) error {
+	return WithTx(r.db, func(tx *sqlx.Tx) error {
+		if _, err := tx.Exec(`DELETE FROM transactions WHERE id = $1;`, transactionID); err != nil {
+			return err
+		}
+		updateBalance := `UPDATE accounts SET balance = $1, updated_at = $2 WHERE id = $3;`
+		if _, err := tx.Exec(updateBalance, newBalance, time.Now(), accountID); err != nil {
+			return err
+		}
+		return nil
+	})
+}
+
 // TransferAtomic creates the withdrawal + deposit transaction pair, updates both
 // account balances, and links the two via related_transactions in a single SQL
 // transaction. Negative balances are allowed — overdraft enforcement is a product
diff --git a/internal/routes/routes.go b/internal/routes/routes.go
index bd3415e..2beaad6 100644
--- a/internal/routes/routes.go
+++ b/internal/routes/routes.go
@@ -124,6 +124,7 @@ func SetupRoutes(a *app.App) http.Handler {
 					g.Get("/transactions/{transactionID}", spaceH.SpaceTransactionPage).Name("page.app.spaces.space.accounts.account.transactions.transaction")
 					g.Get("/transactions/{transactionID}/edit", spaceH.SpaceEditTransactionPage).Name("page.app.spaces.space.accounts.account.transactions.transaction.edit")
 					g.Post("/transactions/{transactionID}/edit", spaceH.HandleEditTransaction).Name("action.app.spaces.space.accounts.account.transactions.transaction.edit")
+					g.Post("/transactions/{transactionID}/delete", spaceH.HandleDeleteTransaction).Name("action.app.spaces.space.accounts.account.transactions.transaction.delete")
 					g.Get("/transactions/{transactionID}/activity", spaceH.SpaceTransactionActivityPage).Name("page.app.spaces.space.accounts.account.transactions.transaction.activity")
 					g.Get("/settings", spaceH.SpaceAccountSettingsPage).Name("page.app.spaces.space.accounts.account.settings")
 					g.Post("/settings/rename", spaceH.HandleRenameAccount).Name("action.app.spaces.space.accounts.account.settings.rename")
diff --git a/internal/service/transaction.go b/internal/service/transaction.go
index 1bdee9a..e497efb 100644
--- a/internal/service/transaction.go
+++ b/internal/service/transaction.go
@@ -517,6 +517,64 @@ func (s *TransactionService) UpdateDeposit(input UpdateDepositInput) (*model.Tra
 	return existing, nil
 }
 
+type DeleteTransactionInput struct {
+	TransactionID string
+	ActorID       string
+}
+
+// DeleteTransaction removes a standalone bill or deposit. Transfers are
+// rejected with ErrTransactionPartOfTransfer — they must be undone via the
+// transfer flow so both halves stay consistent. Deleting a bill credits the
+// account; deleting a deposit debits it.
+func (s *TransactionService) DeleteTransaction(input DeleteTransactionInput) (*model.Transaction, error) {
+	if input.TransactionID == "" {
+		return nil, fmt.Errorf("transaction id is required")
+	}
+
+	existing, err := s.transactionRepo.GetByID(input.TransactionID)
+	if err != nil {
+		return nil, fmt.Errorf("failed to load transaction: %w", err)
+	}
+	if related, err := s.transactionRepo.GetRelatedID(existing.ID); err != nil {
+		return nil, fmt.Errorf("failed to check transfer linkage: %w", err)
+	} else if related != nil {
+		return nil, ErrTransactionPartOfTransfer
+	}
+
+	account, err := s.accountService.GetAccount(existing.AccountID)
+	if err != nil {
+		return nil, fmt.Errorf("failed to load account: %w", err)
+	}
+
+	var newBalance decimal.Decimal
+	switch existing.Type {
+	case model.TransactionTypeWithdrawal:
+		newBalance = account.Balance.Add(existing.Value)
+	case model.TransactionTypeDeposit:
+		newBalance = account.Balance.Sub(existing.Value)
+	default:
+		return nil, fmt.Errorf("unsupported transaction type: %s", existing.Type)
+	}
+
+	if err := s.transactionRepo.DeleteAtomic(existing.ID, existing.AccountID, newBalance); err != nil {
+		return nil, fmt.Errorf("failed to delete transaction: %w", err)
+	}
+
+	s.auditSvc.Record(TransactionRecordOptions{
+		TransactionID: existing.ID,
+		ActorID:       input.ActorID,
+		Action:        model.TransactionAuditActionDeleted,
+		Metadata: map[string]any{
+			"account_id":       existing.AccountID,
+			"transaction_type": string(existing.Type),
+			"title":            existing.Title,
+			"amount":           existing.Value.StringFixedBank(2),
+		},
+	})
+
+	return existing, nil
+}
+
 // diffTransactionFields returns a map of field name to {old, new} for fields whose
 // new value differs from the existing transaction.
 func diffTransactionFields(existing *model.Transaction, newTitle string, newAmount decimal.Decimal, newOccurredAt time.Time, newDescription *string) map[string]any {
diff --git a/internal/service/transaction_test.go b/internal/service/transaction_test.go
index 14741bc..75e18e6 100644
--- a/internal/service/transaction_test.go
+++ b/internal/service/transaction_test.go
@@ -481,6 +481,187 @@ func TestTransactionService_Update_RejectsTransferTransactions(t *testing.T) {
 	})
 }
 
+func TestTransactionService_DeleteTransaction_Bill_CreditsBalance(t *testing.T) {
+	testutil.ForEachDB(t, func(t *testing.T, dbi testutil.DBInfo) {
+		f := newTxnFixture(t, dbi)
+
+		// Seed 100 then pay a 30 bill, leaving balance at 70.
+		_, err := f.svc.Deposit(DepositInput{
+			AccountID: f.account.ID, Title: "seed", Amount: decimal.NewFromInt(100),
+			OccurredAt: time.Now(), ActorID: f.user.ID,
+		})
+		require.NoError(t, err)
+		bill, err := f.svc.PayBill(PayBillInput{
+			AccountID: f.account.ID, Title: "Cable", Amount: decimal.NewFromInt(30),
+			OccurredAt: time.Now(), ActorID: f.user.ID,
+		})
+		require.NoError(t, err)
+
+		updated, err := f.accounts.ByID(f.account.ID)
+		require.NoError(t, err)
+		require.True(t, decimal.NewFromInt(70).Equal(updated.Balance))
+
+		deleted, err := f.svc.DeleteTransaction(DeleteTransactionInput{
+			TransactionID: bill.ID,
+			ActorID:       f.user.ID,
+		})
+		require.NoError(t, err)
+		assert.Equal(t, bill.ID, deleted.ID)
+
+		// 70 + 30 = 100 (credit back).
+		updated, err = f.accounts.ByID(f.account.ID)
+		require.NoError(t, err)
+		assert.True(t, decimal.NewFromInt(100).Equal(updated.Balance))
+
+		// Transaction is gone.
+		_, err = f.svc.GetTransaction(bill.ID)
+		assert.Error(t, err)
+
+		// Audit log records the deletion (created + deleted, newest first).
+		logs, err := f.txAudit.ListByTransaction(bill.ID, 10, 0)
+		require.NoError(t, err)
+		require.Len(t, logs, 2)
+		assert.Equal(t, model.TransactionAuditActionDeleted, logs[0].Action)
+
+		var meta map[string]any
+		require.NoError(t, json.Unmarshal(logs[0].Metadata, &meta))
+		assert.Equal(t, "withdrawal", meta["transaction_type"])
+		assert.Equal(t, f.account.ID, meta["account_id"])
+		assert.Equal(t, "Cable", meta["title"])
+		assert.Equal(t, "30.00", meta["amount"])
+	})
+}
+
+func TestTransactionService_DeleteTransaction_Deposit_DebitsBalance(t *testing.T) {
+	testutil.ForEachDB(t, func(t *testing.T, dbi testutil.DBInfo) {
+		f := newTxnFixture(t, dbi)
+
+		dep, err := f.svc.Deposit(DepositInput{
+			AccountID: f.account.ID, Title: "Paycheck", Amount: decimal.NewFromInt(150),
+			OccurredAt: time.Now(), ActorID: f.user.ID,
+		})
+		require.NoError(t, err)
+
+		updated, err := f.accounts.ByID(f.account.ID)
+		require.NoError(t, err)
+		require.True(t, decimal.NewFromInt(150).Equal(updated.Balance))
+
+		_, err = f.svc.DeleteTransaction(DeleteTransactionInput{
+			TransactionID: dep.ID,
+			ActorID:       f.user.ID,
+		})
+		require.NoError(t, err)
+
+		// 150 - 150 = 0.
+		updated, err = f.accounts.ByID(f.account.ID)
+		require.NoError(t, err)
+		assert.True(t, decimal.Zero.Equal(updated.Balance))
+
+		logs, err := f.txAudit.ListByTransaction(dep.ID, 10, 0)
+		require.NoError(t, err)
+		require.Len(t, logs, 2)
+		assert.Equal(t, model.TransactionAuditActionDeleted, logs[0].Action)
+		var meta map[string]any
+		require.NoError(t, json.Unmarshal(logs[0].Metadata, &meta))
+		assert.Equal(t, "deposit", meta["transaction_type"])
+	})
+}
+
+func TestTransactionService_DeleteTransaction_RejectsTransferHalves(t *testing.T) {
+	testutil.ForEachDB(t, func(t *testing.T, dbi testutil.DBInfo) {
+		f := newTxnFixture(t, dbi)
+		dest := testutil.CreateTestAccount(t, dbi.DB, f.account.SpaceID, "Savings")
+
+		result, err := f.svc.Transfer(TransferInput{
+			SourceAccountID: f.account.ID,
+			DestAccountID:   dest.ID,
+			Title:           "Initial",
+			Amount:          decimal.NewFromInt(20),
+			OccurredAt:      time.Now(),
+			ActorID:         f.user.ID,
+		})
+		require.NoError(t, err)
+
+		_, err = f.svc.DeleteTransaction(DeleteTransactionInput{
+			TransactionID: result.Withdrawal.ID,
+			ActorID:       f.user.ID,
+		})
+		require.ErrorIs(t, err, ErrTransactionPartOfTransfer)
+
+		_, err = f.svc.DeleteTransaction(DeleteTransactionInput{
+			TransactionID: result.Deposit.ID,
+			ActorID:       f.user.ID,
+		})
+		require.ErrorIs(t, err, ErrTransactionPartOfTransfer)
+
+		// Both halves still exist with untouched balances and no extra audit rows.
+		_, err = f.svc.GetTransaction(result.Withdrawal.ID)
+		require.NoError(t, err)
+		_, err = f.svc.GetTransaction(result.Deposit.ID)
+		require.NoError(t, err)
+
+		src, err := f.accounts.ByID(f.account.ID)
+		require.NoError(t, err)
+		assert.True(t, decimal.NewFromInt(-20).Equal(src.Balance))
+		dst, err := f.accounts.ByID(dest.ID)
+		require.NoError(t, err)
+		assert.True(t, decimal.NewFromInt(20).Equal(dst.Balance))
+
+		count, err := f.txAudit.CountByTransaction(result.Withdrawal.ID)
+		require.NoError(t, err)
+		assert.Equal(t, 1, count)
+	})
+}
+
+func TestTransactionService_DeleteTransaction_RemovesCategoryLink(t *testing.T) {
+	testutil.ForEachDB(t, func(t *testing.T, dbi testutil.DBInfo) {
+		f := newTxnFixture(t, dbi)
+
+		categories, err := f.svc.ListCategories()
+		require.NoError(t, err)
+		require.NotEmpty(t, categories, "expected at least one seeded category")
+		categoryID := categories[0].ID
+
+		_, err = f.svc.Deposit(DepositInput{
+			AccountID: f.account.ID, Title: "seed", Amount: decimal.NewFromInt(100),
+			OccurredAt: time.Now(), ActorID: f.user.ID,
+		})
+		require.NoError(t, err)
+		bill, err := f.svc.PayBill(PayBillInput{
+			AccountID:  f.account.ID,
+			Title:      "Groceries",
+			Amount:     decimal.NewFromInt(40),
+			OccurredAt: time.Now(),
+			CategoryID: categoryID,
+			ActorID:    f.user.ID,
+		})
+		require.NoError(t, err)
+
+		got, err := f.svc.GetTransactionCategoryID(bill.ID)
+		require.NoError(t, err)
+		require.Equal(t, categoryID, got)
+
+		_, err = f.svc.DeleteTransaction(DeleteTransactionInput{
+			TransactionID: bill.ID,
+			ActorID:       f.user.ID,
+		})
+		require.NoError(t, err)
+
+		// transaction_categories cascades on the FK; the link is gone.
+		got, err = f.svc.GetTransactionCategoryID(bill.ID)
+		require.NoError(t, err)
+		assert.Equal(t, "", got)
+	})
+}
+
+func TestTransactionService_DeleteTransaction_RequiresID(t *testing.T) {
+	testutil.ForEachDB(t, func(t *testing.T, dbi testutil.DBInfo) {
+		f := newTxnFixture(t, dbi)
+		_, err := f.svc.DeleteTransaction(DeleteTransactionInput{ActorID: f.user.ID})
+		assert.Error(t, err)
+	})
+}
+
 func TestTransactionService_Validations(t *testing.T) {
 	testutil.ForEachDB(t, func(t *testing.T, dbi testutil.DBInfo) {
 		f := newTxnFixture(t, dbi)
diff --git a/internal/ui/pages/space_transaction.templ b/internal/ui/pages/space_transaction.templ
index d031e7b..d6be94e 100644
--- a/internal/ui/pages/space_transaction.templ
+++ b/internal/ui/pages/space_transaction.templ
@@ -4,6 +4,7 @@ import "git.juancwu.dev/juancwu/budgit/internal/model"
 import "git.juancwu.dev/juancwu/budgit/internal/routeurl"
 import "git.juancwu.dev/juancwu/budgit/internal/ui/components/button"
 import "git.juancwu.dev/juancwu/budgit/internal/ui/components/card"
+import "git.juancwu.dev/juancwu/budgit/internal/ui/components/dialog"
 import "git.juancwu.dev/juancwu/budgit/internal/ui/components/icon"
 import "git.juancwu.dev/juancwu/budgit/internal/ui/layouts"
 import "git.juancwu.dev/juancwu/budgit/internal/ui/utils"
@@ -56,14 +57,58 @@ templ SpaceTransactionPage(props SpaceTransactionPageProps) {
 					</p>
 				</div>
 				if props.RelatedTransaction == nil {
-					@button.Button(button.Props{
-						Variant: button.VariantDefault,
-						Href:    routeurl.URL("page.app.spaces.space.accounts.account.transactions.transaction.edit", "spaceID", props.SpaceID, "accountID", props.AccountID, "transactionID", props.Transaction.ID),
-						Class:   "flex items-center gap-2",
-					}) {
-						@icon.Pencil(icon.Props{Class: "size-4"})
-						Edit
-					}
+					<div class="flex items-center gap-2">
+						@button.Button(button.Props{
+							Variant: button.VariantDefault,
+							Href:    routeurl.URL("page.app.spaces.space.accounts.account.transactions.transaction.edit", "spaceID", props.SpaceID, "accountID", props.AccountID, "transactionID", props.Transaction.ID),
+							Class:   "flex items-center gap-2",
+						}) {
+							@icon.Pencil(icon.Props{Class: "size-4"})
+							Edit
+						}
+						@dialog.Dialog() {
+							@dialog.Trigger() {
+								@button.Button(button.Props{
+									Variant: button.VariantDestructive,
+									Class:   "flex items-center gap-2",
+								}) {
+									@icon.Trash2(icon.Props{Class: "size-4"})
+									Delete
+								}
+							}
+							@dialog.Content() {
+								@dialog.Header() {
+									@dialog.Title() {
+										Delete { props.Transaction.Title }?
+									}
+									@dialog.Description() {
+										if props.Transaction.Type == model.TransactionTypeDeposit {
+											This permanently removes the deposit and debits the amount from the account balance.
+										} else {
+											This permanently removes the bill and credits the amount back to the account balance.
+										}
+									}
+								}
+								@dialog.Footer(dialog.FooterProps{Class: "mt-2"}) {
+									@dialog.Close() {
+										@button.Button(button.Props{Variant: button.VariantOutline}) {
+											Cancel
+										}
+									}
+									<form hx-post={ routeurl.URL("action.app.spaces.space.accounts.account.transactions.transaction.delete", "spaceID", props.SpaceID, "accountID", props.AccountID, "transactionID", props.Transaction.ID) }>
+										@button.Button(button.Props{
+											Type:    button.TypeSubmit,
+											Variant: button.VariantDestructive,
+											Class:   "flex gap-2 items-center",
+										}) {
+											@icon.Trash2(icon.Props{Class: "size-4"})
+											Delete
+										}
+									</form>
+								}
+							}
+						}
+					</div>
 				}
 			</div>
 			@card.Card() {