tax-exempt

American

[taks-ig-zempt] / ˈtæks ɪgˌzɛmpt /

adjective

not subject or liable to taxation.

tax-exempt imports.
providing income that is not taxable.

tax-exempt municipal bonds.

noun

a tax-exempt security.

tax-exempt British

adjective

(of an income or property) exempt from taxation
(of an asset) earning income that is not subject to taxation

"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-exempt

First recorded in 1920–25

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.

They also needed to offer at least two taxable bond funds and one national tax-exempt bond fund.

From Barron's

Note: Income is defined as adjusted gross income plus tax-exempt interest for 2024.

From The Wall Street Journal

Although municipalities can issue tax-exempt debt, credit agencies might look askance at the higher burdens.

From The Wall Street Journal

Fiscal sponsorship allows new nonprofit groups to attach themselves to existing tax-exempt entities.

From The Wall Street Journal

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

From Barron's

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