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

At the national level, senators Chuck Grassley, R-Iowa, and Elizabeth Warren, D-Mass, have called for the IRS to hold tax-exempt hospitals accountable. —Megan Garnai, IndyStar, 10 Sep. 2025

Only Arizona charitable tax-exempt organizations can conduct raffles, according to the Gaming Department. —Catherine Reagor, AZCentral.com, 10 Sep. 2025

The $5 million will serve as a sort of down payment, and the commission will use tax-exempt bonds to finance the rest of the purchase. —David Garrick, San Diego Union-Tribune, 8 Sep. 2025

Others want to encourage people of retirement age, 67 and above, to continue working and earn up to €2,000 per month, tax-exempt, thereby encouraging more people to stay working for longer. —Alex Ledsom, Fortune, 7 Sep. 2025

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