Exemption Definition and Legal Meaning

On this page, you'll find the legal definition and meaning of Exemption, written in plain English, along with examples of how it is used.

What is Exemption?

n. 1) Credit given for each dependent, disability, or age over 65 which result in a lower tax level. Not to be confused with deductions that reduce gross income when taxes are paid. 2) The right to be excluded from taxation if one is in a low-income bracket, not being subject to the military draft if employed in an essential industry, having several children, or being a college student.