What is the meaning of Tax Exempt?

Tax Exempt refers to income or property which is not subject to tax. Interest on Municipal bond is not subject to federal income tax. Similarly, interest on a treasury bond is not subject to state or local income taxes.

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APABarry Goldsmith. (2010). tax exempt. Retrieved September 20, 2026, from http://smartdefine.org/tax_exempt/definitions/1164893
ChicagoBarry Goldsmith. 2010. "tax exempt" http://smartdefine.org/tax_exempt/definitions/1164893 (accessed September 20, 2026).
HarvardBarry Goldsmith 2010, tax exempt, Smart Define, viewed 20 September, 2026, <http://smartdefine.org/tax_exempt/definitions/1164893>.
MLABarry Goldsmith. "tax exempt" 21 October 2010. Web. 20 September 2026. <http://smartdefine.org/tax_exempt/definitions/1164893>