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.
Also, partnership returns, S corporation returns, gift, and generation-skipping transfer tax returns; annual information returns of tax-exempt organizations and employment and certain excise tax returns. Howard Cohen, Miami Herald, 11 Apr. 2025 Education and Access: Survivors must be informed of their rights under nonprofit codes of conduct and be given access to independent legal or advocacy resources if harmed by a tax-exempt organization. Sughnen Yongo, Forbes.com, 9 Apr. 2025 Proposals include changing the tax-exempt status of nonprofit hospitals, which could eliminate PSLF eligibility for millions of healthcare workers, and not extending federal tax relief on certain federal student loan forgiveness programs. Follow me on Twitter or LinkedIn. Adam S. Minsky, Forbes.com, 4 Apr. 2025 Named after President Lyndon B. Johnson, the amendment prohibits all 501(c)(3) tax-exempt organizations—like churches, where contributions are tax-deductible—from supporting or opposing candidates in political campaigns. Ron Estes, MSNBC Newsweek, 31 Mar. 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 25 Apr. 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

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