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

This would result in thousands of new jobs and, ultimately, put property that has been historically tax-exempt back on the tax rolls. —Kathryn Wylde, New York Daily News, 21 Mar. 2025

Agents typically plan and conduct examinations of individuals, businesses, tax-exempt and government entities to determine their federal tax bill. —Susan Tompor, USA TODAY, 13 Mar. 2025

When the state forced the tax-exempt foundation to open to the public two days a week, Barnes students picketed. —Susan Tallman, The Atlantic, 12 Mar. 2025

The company reported an effective tax rate of 15.5% for 2024, down from 17.2% in the previous year, due to tax-exempt income and tax credits. —Quartz Intelligence Newsroom, Quartz, 12 Mar. 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