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 sides continued to discuss the tax-exempt, legal status of Catholic Church properties in Israel after Israel’s legislature didn’t ratify the pact. Lorenzino Estrada, AZCentral.com, 30 Dec. 2025 While the memo was non-binding, the IRS has since denied tax-exempt status to a number of aspiring nonprofit collectives. Daniel Libit, Sportico.com, 19 Dec. 2025 The organization obtained its tax-exempt status in 2014 under the name PRISM-Q LGBT & Allies Resource Center, but currently does business as the Placer LGBTQ+ Center. Camryn Dadey, Sacbee.com, 17 Dec. 2025 The Treasury Department has since confirmed that none of the tax-exempt entities Erika Kirk oversees are under investigation by the IRS. CBS News, 15 Dec. 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 6 Jan. 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

More from Merriam-Webster on tax-exempt

Last Updated: - Updated example sentences
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