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.
Unlike the 9% housing tax credit program, this tax credit is automatically available to developers that agree to use tax-exempt bonds to fund half of the project. Emily Holshouser, Fort Worth Star-Telegram, 6 Apr. 2026 But the idea that athletic departments and their associated fundraising arms should be classified as tax-exempt nonprofits promoting education and amateur sports strains credulity. Andrew Urbaczewski, The Conversation, 2 Apr. 2026 COPs are tax-exempt lease financing agreements that do not need to be approved by voters. Olivia Young, CBS News, 1 Apr. 2026 The board was to vote on whether to approve the project and issue tax-exempt revenue bonds to fund it. Lev Akabas, Sportico.com, 27 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 8 Apr. 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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