Tax exemption is the reduction or removal of a liability to make a compulsory payment that would otherwise be imposed by a ruling power upon persons, property, income, or transactions. Tax-exempt status may provide complete relief from taxes, reduced rates, or tax on only a portion of items.

What's an example of exemption?

Exemption is defined as freedom from an obligation, duty or consequence. When everyone else is required to attend a meeting and you don't have to attend, this is an example of a situation where you have an exemption.

What does being exempt from something mean?

1 : free or released from some liability or requirement to which others are subject was exempt from jury duty the estate was exempt from taxes. 2 obsolete : set apart. exempt. verb. exempted; exempting; exempts.