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

Strong governance, transparency, and meticulous record-keeping are crucial for maintaining tax-exempt status and ensuring the collection's long-term stewardship. — Matthew F. Erskine, Forbes.com, 4 Aug. 2026

Governor Moore's Office said the acquisition is funded with a tax-exempt revenue bond, not by taxpayer money. — Kaicey Baylor, CBS News, 4 Aug. 2026

Nonprofit experts told the Herald/Times earlier this year that the foundation’s actions could jeopardize its tax-exempt status because of the strict restrictions on how nonprofits can engage in politics or lobbying. — Claire Heddles, Miami Herald, 31 July 2026

The memorandum from the group, which is a conservative nonprofit that advocates for free speech, also said the DAR was unlikely to be in danger of losing its tax-exempt status by not allowing transgender members. — Matthew Adams, Fort Worth Star-Telegram, 28 July 2026

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