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 project can't be taken off the township's tax rolls by being sold or leased to a nonprofit charitable or other tax-exempt entity. Keith Matheny, Freep.com, 7 Nov. 2025 This story is based on a review of corporation documents, court filings, news archives and IRS documentation for tax-exempt nonprofits. Miami Herald, 7 Nov. 2025 The Reagan foundation is a tax-exempt nonprofit that helps fund his library, which is part of the National Archives and Records Administration. Bill Barrow, Fortune, 25 Oct. 2025 The issuer, MassDevelopment, has also signed over tax-exempt millions to developers of affordable housing. Boston Herald Editorial Staff, Boston Herald, 22 Oct. 2025 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

Browse Nearby Words

Cite this Entry

“Tax-exempt.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/tax-exempt. Accessed 9 Nov. 2025.

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
Love words? Need even more definitions?

Subscribe to America's largest dictionary and get thousands more definitions and advanced search—ad free!