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

Then there is the sector’s tax-exempt status, something those of us inside nonprofits can take for granted. — Brian Peckrill, Forbes.com, 10 Sep. 2026

There is still legal uncertainty over whether the IRS can redefine racial discrimination in this way and revoke an institution's tax-exempt status as a result. — Steve Inskeep, NPR, 4 Sep. 2026

The school has since ended the ban and regained tax-exempt status in 2017. — Jaweed Kaleem, Los Angeles Times, 3 Sep. 2026

Melissa Sue Gerrits | Getty Images Federal law provides tax-exempt status under section 501(c)(3) to organizations that operate exclusively for charitable and educational purposes. — Greg Iacurci,jessica Dickler, CNBC, 3 Sep. 2026

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