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.
So, unless the data is structured correctly, tax-exempt transactions could still downgrade. Robert Day, Forbes.com, 27 June 2025 Trump signed the proclamation after his administration had already frozen billions of dollars in funding to the oldest and wealthiest U.S. university, threatened Harvard's tax-exempt status, and launched several investigations into the school. Nate Raymond, USA Today, 24 June 2025 The Trump administration has also cut more than $2.6 billion in research grants, ended federal contracts and threatened to revoke Harvard's tax-exempt status. Khaleda Rahman, MSNBC Newsweek, 24 June 2025 The Trump administration has also paused billions of dollars in funding to Harvard, threatened its tax-exempt status and launched numerous investigations against the university. Lexi Lonas Cochran, The Hill, 24 June 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 30 Jun. 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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