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 Alaska volunteer effort is run by the tax-exempt Alaska Business Development Center in concert with the American Bar Association Section of Taxation, getting help from the IRS’ Volunteer Income Tax Assistance (VITA) grant program. Danielle Chemtob, Forbes, 11 Mar. 2025 One way to check is with the IRS’s tax-exempt organization search tool: irs.gov/charities-non-profits/search-for-tax-exempt-organizations Also, no charity will ask for your Social Security Number. Roxana Popescu, The Mercury News, 6 Mar. 2025 How much of people’s Social Security benefits will get taxed depends on the total amount of their income, including tax-exempt interest like from a municipal bond, plus one-half of their Social Security benefits for the taxable year. Medora Lee, USA TODAY, 4 Mar. 2025 In 2015, Glorieta Partners received $24 million of tax-exempt bonds for to buy and renovate the property, including new roofs, doors, and installing new appliances. Raisa Habersham, Miami Herald, 28 Feb. 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 Mar. 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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