Tax Exemption

Tax exemption refers to a legal status that relieves individuals or organizations from having to pay certain taxes. For example, non-profit organizations often qualify for tax exemptions, meaning they don’t pay income tax on the funds they receive, allowing more resources to be directed toward their mission. Similarly, some individuals may be exempt from certain taxes due to income level or specific conditions, like being a veteran. Tax exemptions aim to provide financial relief and support to specific groups, encouraging charitable activities or helping those in need.