tax shelter

noun

: a strategy, investment, or tax code provision that reduces tax liability

tax-sheltered

ˈtaks-ˌshel-tərd 

adjective

Examples of tax shelter in a Sentence

Recent Examples on the Web

Foundations are required to distribute at least 5 percent of their assets annually, a rule created precisely to prevent charitable vehicles from becoming indefinite tax shelters. — Nick Allardice, Fortune, 15 Aug. 2026

Dean is also right about tax shelters favoring families with higher taxable incomes. — Teresa Ghilarducci, Forbes.com, 7 July 2026

In the Reagan era, housing experts began to worry rents would become unaffordable amid deep cuts to housing programs and the drafting of the Tax Reform Act, which eliminated several tax shelters for real estate. — Tony Schick, ProPublica, 3 June 2026

He is also charged with falsifying tax returns; those of the tax shelter's clients and his own. — Logan Smith, CBS News, 28 Dec. 2025

Word History

First Known Use

1952, in the meaning defined above

Rhymes for tax shelter

• belter
• melter
• skelter
• smelter
• spelter
• welter

Legal Definition

tax shelter

noun

: an entity (as a partnership) or investment plan or arrangement whose principal purpose is the avoidance or evasion of income tax

also : an interest offered or purchased on the premise that it will provide favorable tax consequences