Definitions for "tax-exempt"
Accounts or investments that generally are free from tax liability.
(of goods or funds) not taxed; "tax-exempt bonds"; "an untaxed expense account"
Some investments are tax-exempt, which means you don't have to pay income tax on the earnings they produce.
Not subject to taxation.
free from or not subject to tax.
Not subject to tax by federal, state, and/or local authorities.
Refers to organizations that do not have to pay taxes such as federal or state corporate tax or state sales tax.