tax-exempt

adjective

tax-ex·​empt ˌtaks-ig-ˈzem(p)t 

1

: exempted from a tax

2

: bearing interest that is free from federal or state income tax

Examples of tax-exempt in a Sentence

Recent Examples on the Web

The effective tax rate decreased to 6.4% from 13.0%, influenced by a higher mix of tax-exempt income. —Quartz Bot, Quartz, 8 Nov. 2024

For example, HOAs recognized by the IRS as section 501(c)(4) social welfare organizations (or that claim such status and meet the requirements) may qualify for the tax-exempt entity exemption. —Jay Adkisson, Forbes, 2 Nov. 2024

Advertisement Never mind that the idea of making tips tax-exempt has flaws. —George Skelton, Los Angeles Times, 22 Sep. 2024

Some $45 billion of tax-exempt bonds were issued in September and supply has remained strong in October as issuers pull forward deals before voters head to the polls, Mukherjee wrote. —Michelle Fox, CNBC, 22 Oct. 2024

Word History

First Known Use

1923, in the meaning defined at sense 1

Legal Definition

tax-exempt

adjective

1

: exempted from taxation

also : based on such exemption

tax-exempt status

2

: providing interest or income that is exempted from taxation

a tax-exempt municipal bond