Definition

1. Adjective:
   • Not subject to taxation; exempt from taxes: Describes goods, income, funds, or investments on which no tax is levied by the government or relevant authority.

Usage

• The adjective "tax-free" is used to modify nouns, indicating that the item or sum of money is not liable for tax.
• It is typically hyphenated when used attributively (before a noun) but can sometimes be written as two words ("tax free") when used predicatively (after a linking verb like "is" or "are"), though the hyphenated form is more common in all positions.

Examples

• Attributive use (before a noun):
  • She invested in tax-free municipal bonds.
  • The airport has a large tax-free shopping zone.
• Predicative use (after a linking verb):
  • The interest earned on this account is completely tax-free.
  • These goods are tax-free for international travelers.

Advanced Usage

• "tax-free allowance": A specific amount of income or capital gain that one can earn without having to pay tax on it.
  • Everyone has a personal tax-free allowance each year.
• "tax-free savings account": A type of account where contributions, interest, and withdrawals are not subject to tax.
  • He maxed out his tax-free savings account this year.

Variants and Related Words

• Tax-exempt (adj): Often used interchangeably with "tax-free," especially in formal or legal contexts regarding bonds or organizations.
  • The charity has tax-exempt status.
• Untaxed (adj): Similar in meaning but can imply something that has simply not been taxed yet, rather than being legally exempt.
  • The untaxed income was later discovered by authorities. (This suggests it should have been taxed, unlike "tax-free.")

Synonyms

• Duty-free: Specifically refers to goods on which import taxes (duties) are not paid, often sold in airports or to travelers.
• Exempt: A broader term meaning free from an obligation or liability, which can include taxes.

Antonyms

• Taxable: Liable to be taxed; subject to taxation.
• Dutiable: Subject to payment of a duty or tax, especially on imports.

Adjective

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