Definitions for "Tax Exempt"
A legal status, bestowed by the IRS, which states that organizations have adequately demonstrated their charitable, education, religious, scientific or literary nature. By far the largest part, but not all, of tax-exempt organizations are non-profit corporations. Others include trusts and benevolent associations.
Income that by law is not subject to income tax.
Income that is not subject to tax. Income exempt from federal tax may, however, be subject to provincial taxation.
Tax-free status given to certain nonprofit organizations and governmental entities.