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

Democrats also expressed concern that Long might allow political interference from the White House at the tax agency, an issue that has been in the spotlight more since Trump threatened to revoke Harvard University’s tax-exempt status. —Kelly Phillips Erb, Forbes.com, 13 June 2025

The tax does not apply to sales to tax-exempt organizations, including government agencies, and to businesses in the University of Maryland’s Discovery District in Prince George’s County. —Danielle J. Brown, Baltimore Sun, 12 June 2025

In 1976, the IRS revoked Bob Jones University's tax-exempt status. —Elissa Nadworny, NPR, 10 June 2025

Trump officials have criticized Harvard's handling of antisemitism allegations and pro-Palestinian protests, while also threatening to cut funding and revoke its tax-exempt status. —Amanda Castro, MSNBC Newsweek, 6 June 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