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 government dissolved Aum as a tax-exempt religious organization, effectively bankrupting it, and began to scrutinize other new religions, including the Unification Church. —E. Tammy Kim, New Yorker, 26 Jan. 2026

Previously, county tax officials ruled that much of the school’s campus didn’t qualify for tax-exempt status, because of how it was used. —Rebecca Noel, Charlotte Observer, 19 Jan. 2026

Tarrant County commissioners voted Tuesday to approve issuing more than $1 billion in tax-exempt bonds to benefit Baylor Scott & White Health, the state’s largest nonprofit health system. —Ciara McCarthy 13, Fort Worth Star-Telegram, 13 Jan. 2026

Arkansas has tweaked its tax code so that NIL income is tax-exempt as an incentive to induce athletes to sign at the University of Arkansas or other in-state schools. —Alex Valdes, New York Times, 11 Jan. 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