tax-exempt

adjective

tax-ex·​empt ˌtaks-ig-ˈzem(p)t How to pronounce tax-exempt (audio)
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
Examples are automatically compiled from online sources to show current usage. Read More Opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback.
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 See all Example Sentences for tax-exempt 

Word History

First Known Use

1923, in the meaning defined at sense 1

Time Traveler
The first known use of tax-exempt was in 1923

Dictionary Entries Near tax-exempt

Cite this Entry

“Tax-exempt.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/tax-exempt. Accessed 25 Nov. 2024.

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

More from Merriam-Webster on tax-exempt

Last Updated: - Updated example sentences
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