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.
All retailers are required to participate and may not charge tax on items that are legally tax-exempt during the sales tax holiday. Kelly Phillips Erb, Forbes.com, 31 July 2025 In on Potential Ghislaine Maxwell Trump Pardon Donald Trump Hit With Epstein Question During EU Deal Announcement The administration has cut more than $2.6 billion in research grants, ended federal contracts and threatened to revoke Harvard's tax-exempt status. Khaleda Rahman, MSNBC Newsweek, 30 July 2025 All retailers must participate and are not permitted to charge tax on items that are legally tax-exempt for the weekend holiday. Keelin Fisher, Arkansas Online, 30 July 2025 But the White House's attacks on Harvard have extended far beyond money for research: The Trump administration has threatened to revoke its tax-exempt status, tried to ban its ability to enroll international students, warned its accreditor, and considered placing a lien on the university's assets. Zachary Schermele, USA Today, 26 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 7 Aug. 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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