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

The acquisition will be funded with tax-exempt revenue bond issuance by the Maryland Economic Development Corporation, and no general fund tax dollars will be used to pay for it, according to the governor's office. — Jt Moodee Lockman, CBS News, 18 June 2026

Massachusetts keeps sporting tickets tax-exempt. — Chris Weatherspoon, New York Times, 10 June 2026

Previously, only certain dispensaries sold such tax-exempt products, forcing purchases in some cases to drive long distances. — Robert McCoppin, Chicago Tribune, 8 June 2026

All money raised by the fundraisers goes to the FIU Foundation, a tax-exempt charity that raises funds for the university. — Daniel Rivero, Miami Herald, 30 May 2026

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