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
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All money raised by the fundraisers goes to the FIU Foundation, a tax-exempt charity that raises funds for the university. Daniel Rivero, Miami Herald, 30 May 2026 The Chula Vista City Council voted unanimously last week to authorize the issuance of up to $80 million in tax-exempt multifamily housing revenue bonds to finance an affordable apartment complex in the Otay Ranch area. Walker Armstrong, San Diego Union-Tribune, 25 May 2026 The proposal also would have reduced the percentage of tax-exempt parcels within the city from approximately 40% to approximately 21%, increasing the taxable property base. Cbs News Atlanta Digital Team, CBS News, 20 May 2026 Higher education, religious literacy, tax-exempt hospitals and more, in readers' eyes. Letters To The Editor, Washington Post, 12 May 2026 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 4 Jun. 2026.

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

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