Tax-Exempt Income

(redirected from Tax-Free Incomes)

Tax-exempt income

Dividends and interest not subject to federal and, in some cases, state and local income taxes.

Tax-Exempt Income

Income that is not subject to taxation. Additionally, certain income an individual or corporation derives may be tax exempt, even though the individual or corporation would owe taxes otherwise. For example, coupons from a municipal bond are tax exempt at the federal level. See also: Tax credit, tax deduction.

Tax-Exempt Income

Income that by law is not subject to income tax.
References in periodicals archive ?
Britons living in the country benefit from tax-free incomes and many boast that they can enjoy privileged lifestyles they could not afford in the UK.
Britons living in the country benefit from tax-free incomes and many who move there boast that they can enjoy privileged lifestyles that they could not afford in the UK.
For individuals, the capital gains from securities transaction will be added to the existing five tax-free incomes in the calculation of basic income but the NT$6 million deduction amount will be lowered.