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 Internal Revenue Services is reversing a long-standing policy and will now allow religious institutions to endorse political candidates without jeopardizing their tax-exempt status — a move that has divided faith leaders and advocacy groups. Lauren Costantino updated July 20, Miami Herald, 20 July 2025 In April, the Trump Administration froze $2.2 billion in grants to Harvard and threatened the school’s tax-exempt status after the university refused to place itself in what amounted to federal receivership. Rob Wolfe, New Yorker, 18 July 2025 The tax-exempt status is one of these tools; prescription drug discounts offered under the 340B program are another. Joe Theine, Denver Post, 15 July 2025 Pastors are now permitted to make political endorsements from the pulpit without fear of their respective churches losing their tax-exempt status. Stephen Mitchell, Baltimore Sun, 14 July 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 Jul. 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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