Tax-free
What it means
Legally not subject to a specified tax.
Reach for it when describing income, goods, savings, or status covered by an actual tax exemption
Residents may place the grant in a tax-free savings account under the new program.
Legally not subject to a specified tax.
Reach for it when describing income, goods, savings, or status covered by an actual tax exemption
Residents may place the grant in a tax-free savings account under the new program.
| everyday | |
|---|---|
| professional |
|
| formal |
everyday
net
Fits when an amount remaining after deductions is intended
Careful Net income may already have had tax removed; it is not inherently tax-free.
everyday
untaxed
Fits when no tax was charged and legality is already clear
Careful Untaxed can imply that a liability was overlooked or evaded.
professional
duty-free
Fits when customs duties on goods are specifically absent
Careful Duty-free applies to customs charges, not income or sales tax generally.
professional
tax-exempt
Fits when formal legal status is the point
Careful Tax-exempt often describes an organization or category, while tax-free can describe a transaction or return.
formal
free of tax
Fits when explanatory prose is clearer than a compound adjective
Careful The phrase is cumbersome before a noun and may obscure which tax is meant.
tax-free income
The rules cap how much tax-free income the account can generate.
tax-free allowance
Each volunteer received a lawful tax-free allowance for travel.
tax-free savings
Tax-free savings helped the family plan for university costs.
Keep in mind
Tax treatment depends on jurisdiction, taxpayer status, and the specific transaction.
Definitions and examples are written for this site. How words are chosen Recording: Vealhurl, Southern England accent, from Wikimedia Commons, CC BY 4.0 Updated
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