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.
Officials also demanded reforms to admissions and oversight of course content and threatened to remove its tax-exempt status. Martha McHardy, MSNBC Newsweek, 30 Aug. 2025 In 2019, the nonprofit tax-exempt status for JMMI was revoked. Louis Casiano, FOXNews.com, 29 Aug. 2025 The structure is especially powerful because the trust itself is a tax-exempt entity under Section 664 of the Internal Revenue Code. Andre Pennington, Forbes.com, 27 Aug. 2025 Only one church has lost its tax-exempt status over politics, NPR reported. Sophie Carson, jsonline.com, 21 Aug. 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 11 Sep. 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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