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.
Federal officials have viewed it as an effort to pressure tax-exempt groups to cut ties with people who have such criminal records and ensure that donors can make informed decisions about how to best direct their money, the sources said. — Gabe Kaminsky, CBS News, 18 Aug. 2026 Not because it was convicted or because the Internal Revenue Service revoked its tax-exempt status. — Ellis Simani, ProPublica, 14 Aug. 2026 But the law firm Skadden released tax guidance stating that Freedom 250 essentially borrows its tax-exempt status from the National Park Foundation, which is a 501(c)(3) organization eligible for tax-deductible donations. — Sarah Webber, The Conversation, 6 Aug. 2026 Gifts of up to 20 million won from parents to a minor child are tax-exempt within once in a 10-year period, according to the Ministry of Government Legislation. — Justina Lee,lisa Kim, CNBC, 6 Aug. 2026 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

Rhymes for tax-exempt

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Browse Nearby Words

taxer
tax-exempt
tax exile
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Cite this Entry

“Tax-exempt.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/tax-exempt. Accessed 23 Aug. 2026.

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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

Nglish: Translation of tax-exempt for Spanish Speakers

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