You can use a few different types of drill bits for cutting ceramic tiles. One option is to use a carbide tipped drill bit. Another option is to use a diamond tipped drill bit, which will easily cut through the ceramic tile surface and provide you with a smooth hole with which to work. When you are using this type of drill bit, you need to be very careful not to chip the tile. Put some tape around the edge of the area where you are working to help prevent chipping.