Taxonomies in Drupal 7 build on taxonomies in previous versions. However, taxonomies have been promoted to first class objects and can be extended with fields. You can now access the taxonomy system by selecting Structure from the administration toolbar. You can then select the Taxonomy link.
To add a new vocabulary, simply click on the Add vocabulary link and add a Name and Description for the new vocabulary. As you name the vocabulary, Drupal will automatically create the default Machine name for you. If you don't like the default machine name, you can always override it. If you edit the vocabulary, you will be taken to a form where you can modify the Name and Description of the vocabulary.
From this screen, you can also access the terms and fields that have been defined for the vocabulary. Terms are accessed via the LIST tab, and fields are accessed via the MANAGE FIELDS and MANAGE DISPLAY tabs.
Fields can be added in exactly the same manner that we used to add fields to...