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.
Add back items like tax-exempt interest. James Brewer, Forbes.com, 19 Sep. 2025 Also, the House Ways and Means Oversight Subcommittee hosted a hearing on tax-exempt hospitals this week. Alexis Kayser, MSNBC Newsweek, 18 Sep. 2025 Trump’s executive actions have rattled nonprofit groups with attempts to limit their work or freeze federal funding, but more aggressive proposals to revoke tax-exempt status never materialized. Sydney Lake, Fortune, 17 Sep. 2025 At the national level, senators Chuck Grassley, R-Iowa, and Elizabeth Warren, D-Mass, have called for the IRS to hold tax-exempt hospitals accountable. Megan Garnai, IndyStar, 10 Sep. 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 21 Sep. 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

Last Updated: - Updated example sentences
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