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

Or, regulators could complain that some donations were not used for tax-exempt purposes. —Beth Gazley, The Conversation, 24 Apr. 2026

Dispensary operators are still hoping for state lawmakers to lower cannabis taxes and allow all dispensaries to sell tax-exempt medical cannabis. —Robert McCoppin, Chicago Tribune, 21 Apr. 2026

Gift this article Democrats around the country are pushing forward on plans to tax the rich — moves that are supportive for the tax-exempt municipal-bond market. —Amanda Albright, Bloomberg, 21 Apr. 2026

Adding to the mystery, the name of the nonprofit matches that of another organization that saw its tax-exempt status revoked after failing to file financial disclosures, as well as its corporate status canceled in 2022 by the Ohio secretary of state. —Gabe Kaminsky, CBS News, 15 Apr. 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