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

Department of Treasury authority to revoke tax-exempt status of “terrorist-supporting groups.”

From Salon

“I want the candidate who will allow tips to be tax-exempt,” she answered.

From Salon

Donald Trump, in his determined effort to claim the mantle of friend of the working man and woman, unveiled a proposal the other day to make overtime pay tax-exempt.

From Los Angeles Times

They threatened the tax-exempt status of the university for failing to integrate racially in the seventies.

From Salon

Never mind that the idea of making tips tax-exempt has flaws.

From Los Angeles Times