diff --git a/packages/block-library/src/query/edit/query-toolbar.js b/packages/block-library/src/query/edit/query-toolbar.js
index 2453c7ca7112d6..7bd16afb99ad0d 100644
--- a/packages/block-library/src/query/edit/query-toolbar.js
+++ b/packages/block-library/src/query/edit/query-toolbar.js
@@ -15,7 +15,7 @@ import { postList } from '@wordpress/icons';
 /**
  * Internal dependencies
  */
-import { getTaxonomyInfo } from '../utils';
+import { getTermsInfo } from '../utils';
 
 export default function QueryToolbar( { query, setQuery } ) {
 	const { categories, tags } = useSelect( ( select ) => {
@@ -23,10 +23,22 @@ export default function QueryToolbar( { query, setQuery } ) {
 		const _categories = getEntityRecords( 'taxonomy', 'category' );
 		const _tags = getEntityRecords( 'taxonomy', 'post_tag' );
 		return {
-			categories: getTaxonomyInfo( _categories ),
-			tags: getTaxonomyInfo( _tags ),
+			categories: getTermsInfo( _categories ),
+			tags: getTermsInfo( _tags ),
 		};
 	}, [] );
+
+	// Handles categories and tags changes.
+	const onTermsChange = ( terms, queryProperty ) => ( newTermNames ) => {
+		const termIds = newTermNames.map(
+			( name ) => terms.mapByName[ name ]?.id
+		);
+		if ( termIds.includes( undefined ) ) return;
+		setQuery( { [ queryProperty ]: termIds } );
+	};
+	const onCategoriesChange = onTermsChange( categories, 'categoryIds' );
+	const onTagsChange = onTermsChange( tags, 'tagIds' );
+
 	return (
 		<Toolbar>
 			<Dropdown
@@ -77,19 +89,8 @@ export default function QueryToolbar( { query, setQuery } ) {
 												.name,
 									} )
 								) }
-								suggestions={ categories.terms.map(
-									( { name } ) => name
-								) }
-								onChange={ ( newCategoryNames ) => {
-									const categoryIds = newCategoryNames.map(
-										( categoryName ) =>
-											categories.mapByName[ categoryName ]
-												?.id
-									);
-									if ( categoryIds.includes( undefined ) )
-										return;
-									setQuery( { categoryIds } );
-								} }
+								suggestions={ categories.names }
+								onChange={ onCategoriesChange }
 							/>
 						) }
 						{ tags?.terms && (
@@ -101,17 +102,8 @@ export default function QueryToolbar( { query, setQuery } ) {
 										value: tags.mapById[ tagId ].name,
 									} )
 								) }
-								suggestions={ tags.terms.map(
-									( { name } ) => name
-								) }
-								onChange={ ( newTagNames ) => {
-									const tagIds = newTagNames.map(
-										( tagName ) =>
-											tags.mapByName[ tagName ]?.id
-									);
-									if ( tagIds.includes( undefined ) ) return;
-									setQuery( { tagIds } );
-								} }
+								suggestions={ tags.names }
+								onChange={ onTagsChange }
 							/>
 						) }
 					</>
diff --git a/packages/block-library/src/query/test/fixtures/index.js b/packages/block-library/src/query/test/fixtures/index.js
new file mode 100644
index 00000000000000..c285343bf3db6e
--- /dev/null
+++ b/packages/block-library/src/query/test/fixtures/index.js
@@ -0,0 +1,21 @@
+export const terms = [
+	{
+		count: 2,
+		id: 4,
+		meta: [],
+		name: 'nba',
+		parent: 0,
+		slug: 'nba',
+		taxonomy: 'category',
+	},
+	{
+		count: 0,
+		id: 11,
+		link: 'http://localhost:8888/?tag=featured',
+		name: 'featured',
+		slug: 'featured',
+		taxonomy: 'post_tag',
+	},
+];
+
+export default { terms };
diff --git a/packages/block-library/src/query/test/utils.js b/packages/block-library/src/query/test/utils.js
new file mode 100644
index 00000000000000..c7acb4b6110bae
--- /dev/null
+++ b/packages/block-library/src/query/test/utils.js
@@ -0,0 +1,30 @@
+/**
+ * Internal dependencies
+ */
+import { terms } from './fixtures';
+import { getTermsInfo } from '../utils';
+
+describe( 'Query block utils', () => {
+	describe( 'getTermsInfo', () => {
+		it( 'should return an empty object when no terms provided', () => {
+			expect( getTermsInfo() ).toEqual( { terms: undefined } );
+		} );
+		it( 'should return proper terms info object', () => {
+			expect( getTermsInfo( terms ) ).toEqual(
+				expect.objectContaining( {
+					mapById: expect.objectContaining( {
+						'4': expect.objectContaining( { name: 'nba' } ),
+						'11': expect.objectContaining( {
+							name: 'featured',
+						} ),
+					} ),
+					mapByName: expect.objectContaining( {
+						nba: expect.objectContaining( { id: 4 } ),
+						featured: expect.objectContaining( { id: 11 } ),
+					} ),
+					names: expect.arrayContaining( [ 'nba', 'featured' ] ),
+				} )
+			);
+		} );
+	} );
+} );
diff --git a/packages/block-library/src/query/utils.js b/packages/block-library/src/query/utils.js
index a006225196cbc1..d865ecea8ec41c 100644
--- a/packages/block-library/src/query/utils.js
+++ b/packages/block-library/src/query/utils.js
@@ -1,17 +1,14 @@
 // TODO jsdoc and tests
-export const getTaxonomyInfo = ( terms ) => ( {
+export const getTermsInfo = ( terms ) => ( {
 	terms,
 	...terms?.reduce(
-		( acc, term ) => ( {
-			mapById: {
-				...acc.mapById,
-				[ term.id ]: term,
-			},
-			mapByName: {
-				...acc.mapByName,
-				[ term.name ]: term,
-			},
-		} ),
-		{ mapById: {}, mapByName: {} }
+		( accumulator, term ) => {
+			const { mapById, mapByName, names } = accumulator;
+			mapById[ term.id ] = term;
+			mapByName[ term.name ] = term;
+			names.push( term.name );
+			return accumulator;
+		},
+		{ mapById: {}, mapByName: {}, names: [] }
 	),
 } );