tax-ex·​empt ˌtaks-ig-ˈzem(p)t How to pronounce tax-exempt (audio)
: exempted from a tax
: bearing interest that is free from federal or state income tax

Example Sentences

Recent Examples on the Web The project would be financed with tax-exempt bonds. J.k. Dineen, San Francisco Chronicle, 3 Apr. 2023 The Woods Family Foundation mentioned on the family office website has never filed the IRS’s 990 form for tax-exempt organizations. Tim Fernholz, Quartz, 31 Mar. 2023 Gabe Bankman-Fried incorporated the group in Delaware as a 501(c)(4) nonprofit — a tax-exempt organization that is permitted to engage in some political campaign activity and make political donations. Lora Kelley, New York Times, 24 Mar. 2023 Health care industry groups hope to block any change with the argument that the FTC lacks statutory authority to regulate nonprofit, or tax-exempt, hospitals, which account for nearly 60% of all U.S. community hospitals. Harris Meyer, Fortune, 23 Mar. 2023 The state’s Democrats have already prepared companion legislation that would exempt unions from contribution limits, make union dues tax-exempt, and allow labor organizations to make independent expenditures in support of or opposition to candidates without having to register as a PAC. The Editors, National Review, 14 Mar. 2023 Twenty-four of the past 27 winners have founded a 501(c)(3) tax-exempt organization since the award was named in honor of Payton in 1999. Jason Wolf, The Arizona Republic, 6 Mar. 2023 That resolution, which also requires Common Council approval, would waive the plan's prohibition against new tax-exempt land uses within the Park East area. Tom Daykin, Journal Sentinel, 2 Mar. 2023 Related: Are tax-exempt hospitals giving back their fair share to communities? Sanjay Kishore And Suhas Gondi, STAT, 27 Feb. 2023 See More

These examples are programmatically compiled from various online sources to illustrate current usage of the word 'tax-exempt.' Any opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback about these examples.

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

Dictionary Entries Near tax-exempt

Cite this Entry

“Tax-exempt.” Dictionary, Merriam-Webster, Accessed 28 May. 2023.

Legal Definition


: exempted from taxation
also : based on such exemption
tax-exempt status
: 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!