Definition of "tax-free" []

• Not subject to taxation; tax-exempt. (adjective)

American Heritage(R) Dictionary of the English Language, Fifth Edition. Copyright (c) 2011 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

• "Distributions designated as return-of-capital are not taxed as ordinary income dividends and are sometimes referred to as tax-free dividends or nontaxable distributions."
• "The deal - officially called a tax-free cash-rich split - would not be considered a sale under Internal Revenue Service guidelines, allowing Yahoo and its Asian partners to avoid taxes."
• "M/M_____, I have some important information for investors on what’s called a tax-free municipal bond fund."