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

But the law firm Skadden released tax guidance stating that Freedom 250 essentially borrows its tax-exempt status from the National Park Foundation, which is a 501(c)(3) organization eligible for tax-deductible donations. — Sarah Webber, The Conversation, 6 Aug. 2026

Gifts of up to 20 million won from parents to a minor child are tax-exempt within once in a 10-year period, according to the Ministry of Government Legislation. — Justina Lee,lisa Kim, CNBC, 6 Aug. 2026

Strong governance, transparency, and meticulous record-keeping are crucial for maintaining tax-exempt status and ensuring the collection's long-term stewardship. — Matthew F. Erskine, Forbes.com, 4 Aug. 2026

Governor Moore's Office said the acquisition is funded with a tax-exempt revenue bond, not by taxpayer money. — Kaicey Baylor, CBS News, 4 Aug. 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