tax-exempt

UK: ˌtæks ɪɡˈzempt | US: ˌtæks ɪɡˈzempt

Definition

  1. adj. not subject to taxation; free from tax liability

  2. vt. to grant exemption from taxes

Structure
tax <charge, levy>exempt <free from>
Etymology

tax-exempt = tax<charge, levy> + exempt<free from>

  1. tax (from Latin taxare, "to assess, charge")

    • Originally referred to a financial charge imposed by authority.

  2. exempt (from Latin eximere, "to take out, remove")

    • Combines ex- (out) + emere (take), implying freedom from obligation.

Etymology Origin:
The compound tax-exempt emerged in the early 19th century, blending tax (a levied charge) with exempt (to remove or exclude). The term logically reflects the removal (exempt) of a financial burden (tax), often applied to income, goods, or organizations.

Examples

  1. Nonprofit organizations are often tax-exempt under federal law.

  2. The government declared agricultural equipment tax-exempt to support farmers.

  3. Scholarships may be tax-exempt if used for tuition.

  4. Imported medicines were made tax-exempt during the crisis.

  5. Donations to this charity are tax-exempt in most jurisdictions.