tax shelter

American  

noun

1. any financial arrangement (as a certain kind of investment or allowance) that results in a reduction or elimination of taxes due.

---

tax shelter British  

noun

1. commerce a form into which business or financial activities may be organized to minimize taxation

---

tax shelter Cultural  

1. A type of investment that allows a reduction in one's taxable income. Examples include investments in pension plans and real estate.

---

Other Word Forms

• tax-sheltered
  adjective

Example Sentences

See Examples For:

tax shelter

After 1999, Ireland’s 12.5% corporate tax rate and English-speaking workforce made it a tax shelter for foreign companies—many of them American—similar to the Cayman Islands.

From The Wall Street Journal ● Dec. 7, 2025

The island of Jersey, a British Crown dependency that has long served as a tax shelter for the wealthy, froze an estimated $7 billion in Abramovich accounts on April 12.

From Washington Post ● May 5, 2022

Philanthropy has a reputation problem because it has been “abused” as a tax shelter by too many wealthy donors, said Alexander-Young, who previously served as vice president for strategy and equity at the Meyer Foundation.

From Seattle Times ● Oct. 14, 2021

Over the past several decades, Ireland has served as a tax shelter for many large tech companies, thanks to its low corporate tax rate.

From The Verge ● Oct. 7, 2021

“There has always been a tax shelter industry in America,” he said.

From New York Times ● Sep. 20, 2019