tax-exempt

[taks-ig-zempt]

adjective

1. not subject or liable to taxation.

   tax-exempt imports.

2. providing income that is not taxable.

   tax-exempt municipal bonds.

noun

1. a tax-exempt security.

tax-exempt

adjective

1. (of an income or property) exempt from taxation

2. (of an asset) earning income that is not subject to taxation

Word History and Origins

Origin of tax-exempt¹

First recorded in 1920–25

Example Sentences

For the stagflation concern, diversification with tax-exempt bonds with attractive tax-equivalent yields is wise.

Read more on Barron's

Remember when the Obama administration’s Internal Revenue Service targeted conservative nonprofits over their tax-exempt status—with the intent to limit speech it didn’t like?

Read more on The Wall Street Journal

For more than 70 years, churches and other religious institutions in the United States were told to steer clear of “any political activity” or risk losing their tax-exempt status.

Read more on Salon

On Monday, the IRS revoked a long-standing rule that stripped tax-exempt status from churches that endorse political candidates.

Read more on Salon

Blue Shield denied the accusations but ultimately relinquished its tax-exempt status, even as it has continued to pursue an appeal of an order requiring it to pay more than $100 million in back taxes.

Read more on Los Angeles Times