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
Examples are automatically compiled from online sources to show current usage. Read More Opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback.
The organization obtained its tax-exempt status in 2014 under the name PRISM-Q LGBT & Allies Resource Center, but currently does business as the Placer LGBTQ+ Center. Camryn Dadey, Sacbee.com, 17 Dec. 2025 The Treasury Department has since confirmed that none of the tax-exempt entities Erika Kirk oversees are under investigation by the IRS. CBS News, 15 Dec. 2025 Recapture taxes, which means paying back the federal government for the benefits of using tax-exempt mortgage bonds for financing. Andrea Riquier, USA Today, 14 Dec. 2025 That surge has been driven mainly by trust banks and asset managers benefiting from retail inflows under the Japanese government's tax-exempt investment program. Lim Hui Jie, CNBC, 4 Dec. 2025 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 21 Dec. 2025.

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

More from Merriam-Webster on tax-exempt

Last Updated: - Updated example sentences
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