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.
At the national level, senators Chuck Grassley, R-Iowa, and Elizabeth Warren, D-Mass, have called for the IRS to hold tax-exempt hospitals accountable. Megan Garnai, IndyStar, 10 Sep. 2025 Only Arizona charitable tax-exempt organizations can conduct raffles, according to the Gaming Department. Catherine Reagor, AZCentral.com, 10 Sep. 2025 The $5 million will serve as a sort of down payment, and the commission will use tax-exempt bonds to finance the rest of the purchase. David Garrick, San Diego Union-Tribune, 8 Sep. 2025 Others want to encourage people of retirement age, 67 and above, to continue working and earn up to €2,000 per month, tax-exempt, thereby encouraging more people to stay working for longer. Alex Ledsom, Fortune, 7 Sep. 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 14 Sep. 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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