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 Internal Revenue Service is also considering revoking Harvard's tax-exempt status, sources told ABC News earlier this month. Arthur Jones Ii, ABC News, 28 Apr. 2025 The tax-exempt organization also was sued by former Pedal Ahead manager Rodrigo Rodriguez, who alleged he was fired after raising questions about compliance and other records the organization sent to the state. Jeff McDonald, Mercury News, 28 Apr. 2025 As the May 15 filing deadline approaches, the Internal Revenue Service (IRS) is urging tax-exempt organizations to review filing requirements and avoid common mistakes that could result in penalties or loss of tax-exempt status. Thomas G. Moukawsher, MSNBC Newsweek, 25 Apr. 2025 Ed Chaney, a lawyer who advises tax-exempt organizations, said some of his private foundation clients have even stopped giving to causes singled out by the Trump organization. Hayley Cuccinello,robert Frank, CNBC, 25 Apr. 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

Browse Nearby Words

Cite this Entry

“Tax-exempt.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/tax-exempt. Accessed 3 May. 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
Love words? Need even more definitions?

Subscribe to America's largest dictionary and get thousands more definitions and advanced search—ad free!