exemption

noun

ex·​emp·​tion ig-ˈzem(p)-shən 

1

: the act of exempting or state of being exempt : immunity

2

: one that exempts or is exempted

especially : a source or amount of income exempted from taxation

Synonyms

• immunity
• impunity

Examples of exemption in a Sentence

They were granted exemptions from military service.

You can claim a tax exemption for each of your dependents.

Recent Examples on the Web

In an effort to offset the TCJA’s costs, the law repealed certain deductions, including the personal and dependency exemptions, and limited the state and local tax (SALT) deduction to $10,000. —Tribune News Service, Twin Cities, 15 Nov. 2024

The trial in Ada County District Court seeks to clarify the medical exemptions in the laws. —Elizabeth Robinson, NBC News, 12 Nov. 2024

Meanwhile, the changes to the AMT exemptions has left far fewer taxpayers actually paying the tax, said Craig Brandon, co-head of municipals at Morgan Stanley Investment Management. —Michelle Fox, CNBC, 5 Nov. 2024

There are exemptions, and policies can vary from country to country. —Laura Kelly, The Hill, 2 Nov. 2024

Word History

First Known Use

14th century, in the meaning defined at sense 1

Kids Definition

exemption

noun

ex·​emp·​tion ig-ˈzem(p)-shən 

1

: the act of exempting : the state of being exempt

2

: something that is exempted

Legal Definition

exemption

noun

ex·​emp·​tion ig-ˈzemp-shən 

1

: the act of exempting or state of being exempt

2

: one that exempts or is exempted: as

a

: an amount of income exempted from taxation that may be deducted from adjusted gross income under the tax laws see also Internal Revenue Code compare deduction, exclusion, tax credit

— dependency exemption \ də-​ˈpen-​dən-​sē-​ \

: an exemption that is allowed for each dependent who qualifies under the tax laws (as sections 151 and 152 of the Internal Revenue Code)

Note: Under the federal income tax laws, the dependency exemption is allowed for each dependent whose gross income is less than the exemption or who is a child of the taxpayer and is under 19 or a student under 24.

— personal exemption

: an exemption that is allowed for the taxpayer or for the taxpayer and spouse if filing a joint return

b

: the right created by federal and state laws to exempt specified types of property from a bankruptcy estate

precludes the debtor from using the exemptions in the Bankruptcy Code

also : a type of property that may be claimed as exempt see also Bankruptcy Code

c

: homestead exemption