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 trust, as a tax-exempt entity, sells the asset without triggering capital gains. — Andre Pennington, Forbes.com, 8 June 2026 Massachusetts keeps sporting tickets tax-exempt. — Chris Weatherspoon, New York Times, 10 June 2026 Previously, only certain dispensaries sold such tax-exempt products, forcing purchases in some cases to drive long distances. — Robert McCoppin, Chicago Tribune, 8 June 2026 All money raised by the fundraisers goes to the FIU Foundation, a tax-exempt charity that raises funds for the university. — Daniel Rivero, Miami Herald, 30 May 2026 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

Rhymes for tax-exempt

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Browse Nearby Words

taxer
tax-exempt
tax exile
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Cite this Entry

“Tax-exempt.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/tax-exempt. Accessed 7 Jul. 2026.

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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

Nglish: Translation of tax-exempt for Spanish Speakers

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