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
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Tax forms for the national Indivisible, a tax-exempt social welfare group, show the group reported $5 million in assets in 2024. Taylor Seely, AZCentral.com, 10 Feb. 2026 Nate Testman, the fund's interim director, said the agency has ramped up efforts to preserve properties by working with owners and using tax-exempt bonds to help finance renovations. CBS News, 8 Feb. 2026 Defend the 612 appears to do business as the tax-exempt entity. Mia Cathell, The Washington Examiner, 4 Feb. 2026 The city would offer the incentives under the state’s Chapter 100 bond program, which allows a municipality to loan out its tax-exempt status to incentivize economic development. Nathan Pilling, Kansas City Star, 4 Feb. 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

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Cite this Entry

“Tax-exempt.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/tax-exempt. Accessed 15 Feb. 2026.

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

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