Custom Post Type Category Page

Hello. I am having trouble with creating a category page for my custom post type.

Here is the function for my post type:

add_action( 'init', 'create_post_type' );
function create_post_type() {
	register_post_type( 'backgrounds',
		array(
			'labels' => array(
				'name' => __( 'Backgrounds' ),
				'singular_name' => __( 'Background' ),
				'add_new' => __ ('Add Background'),
				'add_new_item' => __ ('Add New Background')
			),
		'public' => true,
		'has_archive' => true,
		'supports' => array('title','editor','custom-fields', 'tags'),
		'taxonomies' => array('post_tag','category'),
		'menu_position' => 5,
		'rewrite' => array('slug' =>'backgrounds','with_front' => true)
		)
	);

	flush_rewrite_rules();
}

Here is my wp_query:

<?php query_posts(array('post_type' => 'backgrounds', 'posts_per_page' => 10 )); ?>

				<?php while ( have_posts() ) : the_post(); ?>

					<a href="<?php the_permalink(); ?>"><div id="thumb" style="background: url(https://fresh-profile.com/backgrounds/<?php echo get_post_meta($post->ID, "file", $single = true); ?>) center center repeat;">
						<div id="thumb-bg"></div>
					</div></a>

				<?php endwhile; ?>

But on the category page, it just displays all the posts, and doesn’t filter by the categories. Please help?