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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.
Under the law, SGOs must be tax-exempt nonprofits, such as educational charities, universities or churches. Aliss Higham, MSNBC Newsweek, 26 Nov. 2025 His successor, Republican Richard Nixon, sought to use federal tax authorities to assail universities’ tax-exempt status over Vietnam War protests, according to National Public Radio, in a precursor to Trump’s plan to strip Harvard University of the same privilege. Seth Klamann, Denver Post, 25 Nov. 2025 Loans that are eligible for tax-exempt forgiveness on or before December 31, 2025 will remain tax-exempt at the federal level, even if the forgiveness is processed in 2026 or later. Anna Kleiber, jsonline.com, 12 Nov. 2025 The thing to keep in mind on a taxpayer basis is that the entirety of the college sports and higher education ecosystem is underpinned on those all being nonprofit tax-exempt organizations. Dana Taylor, USA Today, 11 Nov. 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 1 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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