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

Harvard and its peers are tax-exempt charitable institutions. — Jayson Weingarten, Fortune, 26 Sep. 2026

The deduction applies to cash contributions made to eligible tax-exempt organizations. — Kate Dore, Cfp®, Ea, CNBC, 24 Sep. 2026

In the meantime, many nonprofit schools may end their programs that are designed to address the results of past discrimination out of a fear of potentially losing their tax-exempt status. — Elizabeth Schmidt, The Conversation, 11 Sep. 2026

Then there is the sector’s tax-exempt status, something those of us inside nonprofits can take for granted. — Brian Peckrill, Forbes.com, 10 Sep. 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