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tax-free

American

[taks-free] / ˈtæksˌfri /

adjective

tax-exempt.

tax-free British

adjective

not needing to have tax paid on it

tax-free savings schemes

"Collins English Dictionary — Complete & Unabridged" 2012 Digital Edition © William Collins Sons & Co. Ltd. 1979, 1986 © HarperCollins Publishers 1998, 2000, 2003, 2005, 2006, 2007, 2009, 2012

Etymology

Origin of tax-free

First recorded in 1695–1705; tax + -free

Example Sentences

Examples are provided to illustrate real-world usage of words in context. Any opinions expressed do not reflect the views of Dictionary.com.

The pro-rata portion that is tax-free is calculated on Form 8606 every year a distribution is made, regardless of your age, as long as there are after-tax funds in any IRA you own.

From MarketWatch • Apr. 20, 2026

More than 20,000 people have made Covid-related claims to the Vaccine Damage Payment Scheme, a form of financial support paid by the government, but only about 1% have resulted in one-off tax-free awards of £120,000.

From BBC • Apr. 16, 2026

By comparison, there are around 17 million External link 529 plans, which are designed to be used to pay for college tuition after earnings accumulate tax-free over several years.

From Barron's • Apr. 15, 2026

But the money isn’t tax-free when you withdraw it down the road, either: It’s taxed on withdrawal as ordinary income, like with a traditional IRA.

From MarketWatch • Apr. 9, 2026

Delaware wasn’t the capital of anything except tax-free shopping.

From "The First State of Being" by Erin Entrada Kelly

Definitions and idiom definitions from Dictionary.com Unabridged, based on the Random House Unabridged Dictionary, © Random House, Inc. 2023