tax-exempt

adjective

tax-ex·​empt ˌtaks-ig-ˈzem(p)t 

1

: exempted from a tax

2

: bearing interest that is free from federal or state income tax

Examples of tax-exempt in a Sentence

Recent Examples on the Web

High-income investors can get extra bang for their buck from buying tax-exempt municipal bonds or using the selloff to harvest tax losses and reinvest in better-yielding debt, according to Jason Katz of UBS. — Hayley Cuccinello, CNBC, 10 Oct. 2026

Cuban Americans for Cuba debuted on social media the following year and, in August, secured tax-exempt nonprofit status from the IRS with a New York address. — Hudson Crozier, The Washington Examiner, 9 Oct. 2026

Allowing broad use of tax-exempt diesel could be especially helpful for truckers grappling with a historic spike in diesel set off by the war in Iran and amplified by attacks on Russian refineries and export restrictions in China. — Matt Egan, CNN Money, 6 Oct. 2026

The move could shed nearly 25 cents per gallon from the cost of diesel for vehicle owners newly allowed to access the tax-exempt fuel, but those savings make up a small share of the price increase for diesel set off by the Iran war, analysts said. — ABC News, 30 Sep. 2026

Word History

First Known Use

1923, in the meaning defined at sense 1

Rhymes for tax-exempt

• nonexempt
• attempt
• contempt
• exempt
• preempt
• unkempt
• empt
• tempt

Legal Definition

tax-exempt

adjective

1

: exempted from taxation

also : based on such exemption

tax-exempt status

2

: providing interest or income that is exempted from taxation

a tax-exempt municipal bond