Drop down with CMS

So I am starting a blog and considering the amount of different content I want there to be clear nav. So, I am trying to create my nav bar so that all the categories to be listed on top on 1st level nav and link to the category page. However, I need there to be sub categories as well and was hoping to create a drop down menu that links to tag pages. Is there any way to do this?

This can be done by making Static Dropdowns followed by CMS Collection lists with specific category links. You would effectively be building a nested CMS list within static list.