Meaning of “tax-exempt” in the English Dictionary

"tax-exempt" in American English

See all translations

tax-exemptadjective [ not gradable ]

us /ˈtæks ɪɡˌzempt/

not considered as part of your income when you calculate your taxes:

tax-exempt municipal bonds

(Definition of “tax-exempt” from the Cambridge Academic Content Dictionary © Cambridge University Press)

"tax-exempt" in Business English

See all translations


uk us also tax exempt TAX, GOVERNMENT

used to describe a product, service, or financial arrangement on which no tax is paid:

The poorest families pay no grocery tax because their food stamp purchases are tax exempt.
tax-exempt income/contribution The savings account will be limited to €50,000 for tax-exempt contributions.
a tax-exempt bond/fund/plan

used to describe an organization that does not have to pay tax:

The federal tax code prohibits using income and assets from tax-exempt organizations for personal gain.
tax-exempt status

the condition of being tax-exempt:

The settlement preserved the tax-exempt status of the bonds issued, thereby protecting investors.
We are studying the impact of the federal tax-exempt status provided to college athletic departments.

(Definition of “tax-exempt” from the Cambridge Business English Dictionary © Cambridge University Press)