noun ex·emp·tion \ig-ˈzem(p)-shən\

: freedom from being required to do something that others are required to do

: a source or amount of income that is not taxed

Full Definition of EXEMPTION

:  the act of exempting or state of being exempt :  immunity
:  one that exempts or is exempted; especially :  a source or amount of income exempted from taxation

Examples of EXEMPTION

  1. They were granted exemptions from military service.
  2. You can claim a tax exemption for each of your dependents.

First Known Use of EXEMPTION

14th century

Other Economics Terms

actuary, compound interest, globalization, indemnity, portfolio, rentier, stagflation, usurer


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