tax-exempt

adjective

tax-ex·​empt ˌtaks-ig-ˈzem(p)t How to pronounce tax-exempt (audio)
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
Examples are automatically compiled from online sources to show current usage. Read More Opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback.
The Administration's decision adds to a growing list of federal penalties levied against Harvard, including the loss of billions in federal research funding and recent threats to strip the university of its tax-exempt status. Nik Popli, Time, 22 May 2025 Here’s why How student loan borrowers can avoid default as Trump ramps up collection efforts Sen. Elizabeth Warren, D-Mass., who provided her questions to Long in advance, asked whether Trump could legally end Harvard University’s tax-exempt status. Kate Dore, Cfp®, Ea, CNBC, 20 May 2025 The president, angry that Harvard has resisted his demands for overhauling its campus practices, has called for the I.R.S. to strip Harvard of its tax-exempt status. Andrew Duehren, New York Times, 20 May 2025 President Donald Trump is pushing to strip the school of its tax-exempt status, while the Department of Homeland Security has threatened to revoke the school's eligibility to host foreign students. Khaleda Rahman, MSNBC Newsweek, 20 May 2025 See All Example Sentences for tax-exempt

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

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Cite this Entry

“Tax-exempt.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/tax-exempt. Accessed 28 May. 2025.

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

More from Merriam-Webster on tax-exempt

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