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

In 2006, the IRS revoked or moved to revoke the tax-exempt status of 41 credit counseling agencies, including some of the largest, after finding that many were operating more like businesses than charities. — Lucy Jones, Sacbee.com, 28 Oct. 2026

The Democrats’ answer to billionaire contributors is found in the political abuse of tax-exempt philanthropic foundations, which President William Taft’s Attorney General George Wickersham warned against in 1910. — George Liebmann, Baltimore Sun, 28 Oct. 2026

Some online platforms, like Relay, also ask for an IRS determination letter confirming tax-exempt status. — Andreina Rodriguez, CNBC, 21 Oct. 2026

Cuban Americans for Cuba debuted on social media the following year and, in August, secured tax-exempt nonprofit status from the IRS with a New York address. — Hudson Crozier, The Washington Examiner, 9 Oct. 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