From the left side of the Inbox screen, click the Delete link next to the folder you want to delete.
The Delete Folder dialog box opens.
Click Yes to confirm deletion.
The folder is deleted and the messages are moved into the Trash folder.
You can delete any personal folder that you've created. Default folders (i.e. Inbox, Drafts, Sent Items, Spam and Trash) can't be deleted.
Warning: Deleting a folder also deletes any email messages that folder contains. Ensure that you want to delete these emails or move them to another folder.
To delete a folder: