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

However, the Indiana attorney general's powers are focused on operational changes, so the office cannot revoke a nonprofit's tax-exempt status and force an organization to pay state taxes, such as corporate income, property and sales taxes. —Cate Charron, IndyStar, 14 Aug. 2025

Historically, an affordable project needs to cover half of its costs with particular tax-exempt bonds — which, like the 9% credits, are in short supply — to make full use of the 4% credits. —Calmatters, Mercury News, 12 Aug. 2025

Through the tax-exempt status of nonprofit hospitals, taxpayers are effectively subsidizing some of this charity care for the uninsured. —Emily Crawford, NPR, 12 Aug. 2025

That coincides with the current administration’s stance, including signals from President Donald Trump that his administration could crack down on tax-exempt organizations. —Kelly Phillips Erb, Forbes.com, 11 Aug. 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