Nontaxable (adjective)

Not subject to or liable for taxation.

Origin:

Non- + taxable, from tax (verb).

Examples:

1. The interest on municipal bonds is generally nontaxable.
2. The sale of a primary residence is generally nontaxable.
3. Certain types of income, such as gifts and inheritances, may be nontaxable.
4. Nontaxable items include most types of food, medical supplies, and education expenses.
5. The employee's nontaxable allowances are used to reduce the tax liability.