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

Not-for-profit, or tax-exempt hospitals, account for most hospitals and health systems in the U.S. —Bruce Japsen, Forbes, 11 Dec. 2024

Many exempt businesses — such as large companies, banks, credit unions, tax-exempt entities and public utilities — already furnish similar data. —Greg Iacurci, CNBC, 9 Dec. 2024

Nonprofit collective operators have complained that they are being held to a different standard than hundreds of other college sports organizations—from universities to athletic foundations—that have long enjoyed their tax-exempt status. —Daniel Libit, Sportico.com, 2 Dec. 2024

The charity’s tax filing also disclosed the couple’s nominal one-hour-per-week involvement in Archewell’s operations, a standard practice for directors of U.S. tax-exempt organizations. —Erin Hill, People.com, 2 Dec. 2024

Word History

First Known Use

1923, in the meaning defined at sense 1

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