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

These generally include entities that are already required to register their ownership with the federal government, such as public companies and tax-exempt entities. —Kelly Phillips Erb, Forbes, 11 Feb. 2025

The company's effective tax rate decreased, reflecting a higher mix of tax-exempt income and solar investment tax credits. —Quartz Intelligence Newsroom, Quartz, 7 Feb. 2025

But just because a hospital’s name goes up on a building doesn’t mean that property has become tax-exempt, Lawson said. —Sarah Cutler, Idaho Statesman, 6 Feb. 2025

Both nonprofit entities now seek to restructure their debt through tax-exempt conduit revenue notes, Hutchinson Finance Director Andy Reid said. —Janean Sorrell, Twin Cities, 6 Feb. 2025

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