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

The state created the authority in 1972 to issue tax-exempt bonds that help nonprofit hospitals and public universities borrow money at lower cost. —Joshua Haiar, States Newsroom, 9 Jan. 2026

Northwestern University, the University of Chicago, Rush, Northwestern Medicine and others sit on billions of dollars in tax-exempt real estate while surrounding neighborhoods and local governments strain to fund basic services and the rest of us face ever bigger tax bills. —Andy Shaw, Chicago Tribune, 7 Jan. 2026

The sides continued to discuss the tax-exempt, legal status of Catholic Church properties in Israel after Israel’s legislature didn’t ratify the pact. —Lorenzino Estrada, AZCentral.com, 30 Dec. 2025

While the memo was non-binding, the IRS has since denied tax-exempt status to a number of aspiring nonprofit collectives. —Daniel Libit, Sportico.com, 19 Dec. 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