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.
When asked directly in the survey if churches that endorse political candidates should lose their tax-exempt status, around 48% of respondents agreed, 31% disagreed and 21% weren’t sure. Angele Latham, The Tennessean, 9 July 2025 The Administration has also sought to revoke the university’s tax-exempt status and its ability to enroll international students. Solcyré Burga, Time, 9 July 2025 The Transportation Security Administration will no longer require travelers to remove their shoes at airport security checkpoints in the U.S. Places of worship can now endorse political candidates without losing their tax-exempt status, according to the Internal Revenue Service. Brittney Melton, NPR, 9 July 2025 The Johnson Amendment is a 1954 amendment to the U.S. tax code that prohibits tax-exempt organizations, including churches, from endorsing or opposing political candidates. Fatima Hussein, Chicago Tribune, 8 July 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 21 Jul. 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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