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.
The bills announced Wednesday morning will tackle prices at the gas pump, create tax credits for low-income renters, and make tips tax-exempt for workers such as bartenders and manicurists. Anabel Sosa, Los Angeles Times, 27 Feb. 2025 The tax-exempt organization also was investigated by the San Diego Association of Governments, or SANDAG, for its handling of some $440,000 for a local e-bike program before the regional planning agency last year took over administration of that effort. Jeff McDonald, San Diego Union-Tribune, 23 Feb. 2025 These generally include entities already required to register their ownership with the federal government, such as public companies and tax-exempt entities. Kelly Phillips Erb, Forbes, 19 Feb. 2025 Much of the concern centers on legislation in Congress that would remove the tax-exempt status of nonprofit groups that are found to be supporting terrorist organizations. Lisa Lerer, New York Times, 16 Feb. 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 5 Mar. 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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