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

While Vance’s critique of the Ford Foundation’s tax-exempt status was limited to its support of The Nation during his podcast appearance, other administration officials have provided clues as to how the government will conduct its scrutiny of liberal philanthropies. —Robert Schmad, The Washington Examiner, 24 Sep. 2025

The president has also floated the idea of revoking liberal nonprofits' tax-exempt status, CNN reports. —Meredith Kile, PEOPLE, 23 Sep. 2025

Advertisement To get tax-exempt status, an organization has to describe itself to the Internal Revenue Service and explain its intention to further charitable, educational, scientific or religious purposes. —Brian Bennett, Time, 22 Sep. 2025

The administration has moved to target left-leaning groups with racketeering probes and the potential loss of their tax-exempt status. —Fortune, 22 Sep. 2025

Word History

First Known Use

1923, in the meaning defined at sense 1

Rhymes for tax-exempt

• nonexempt
• attempt
• contempt
• exempt
• preempt
• unkempt
• empt
• tempt

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