tax-free

/'tæks'fri:n/

Friendly

Word: Tax-free

Part of Speech: Adjective

Definition: "Tax-free" means that something is not subject to taxes. This can apply to money, goods, or certain types of income that do not require you to pay tax on them.

Usage Instructions

You can use "tax-free" to describe things like products, investments, or any income that isn't taxed.

Examples:

1. Goods: "The store is having a tax-free weekend, so you won't have to pay sales tax on your purchases."
2. Income: "Some types of savings accounts are tax-free, meaning you won't have to pay taxes on the interest you earn."
3. Investment: "I invested in tax-free bonds, which means I won’t have to pay taxes on the interest."

Advanced Usage:

In finance and economics, "tax-free" often refers to investments or accounts designed to provide returns without tax implications. For example, a "tax-free savings account" allows individuals to save money and earn interest without paying taxes on that interest.

Word Variants:

1. Taxation (noun): The process of collecting taxes.
2. Taxable (adjective): Describes something that is subject to taxes.

Different Meanings:

• Tax-exempt: Similar to tax-free, it usually refers to organizations or certain types of income that are not required to pay taxes.

Synonyms:

• Untaxed
• Duty-free (often used for goods purchased in specific situations, like at airports)

Idioms and Phrasal Verbs:

While "tax-free" does not have specific idioms or phrasal verbs, you might hear phrases like "tax-free zone," which refers to an area where no taxes are applied.

Conclusion:

"Tax-free" is a useful term to understand, especially when discussing finances, shopping, or investments.

Academic

Adjective

1. (of goods or funds) not taxed
   • tax-exempt bonds
   • an untaxed expense account

Synonyms

• tax-exempt
• untaxed