Custom Post Type with Custom Taxonomy

<?php
function create_custom_post_type_and_taxonomy() {
    // Custom Post Type
    register_post_type('portfolio', array(
        'labels' => array(
            'name' => __('Portfolios'),
            'singular_name' => __('Portfolio')
        ),
        'public' => true,
        'has_archive' => true,
        'supports' => array('title', 'editor', 'thumbnail', 'excerpt'),
        'rewrite' => array('slug' => 'portfolio'),
        'menu_icon' => 'dashicons-portfolio',
    ));

    // Custom Taxonomy
    register_taxonomy('portfolio_category', 'portfolio', array(
        'labels' => array(
            'name' => __('Portfolio Categories'),
            'singular_name' => __('Portfolio Category')
        ),
        'hierarchical' => true,
        'rewrite' => array('slug' => 'portfolio-category'),
    ));
}
add_action('init', 'create_custom_post_type_and_taxonomy');
?>