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Tax-exempt organizations

The government typically exempts organizations from income tax entirely when they serve the
public good, such as religious or charitable organizations. The government eliminates the tax
burden of certain organizations it helps them further promote public welfare.

In the United States, non-profit organizations are typically exempt from federal taxes.
These organizations include charities, churches, schools, and labor unions. Non-profit
tax exemptions depend on several factors, such as purpose, activities, and sources of
income. State tax laws vary; however, such organizations are generally exempt from
state income and property taxes, and sometimes sales tax. Tax-exempt organizations

The government typically exempts organizations from income tax entirely


when they serve the public good, such as religious or charitable organizations.
The government eliminates the tax burden of certain organizations it helps
them further promote public welfare.

In the United States, non-profit organizations are typically exempt from federal
taxes. These organizations include charities, churches, schools, and labor
unions. Non-profit tax exemptions depend on several factors, such as
purpose, activities, and sources of income. State tax laws vary; however, such
organizations are generally exempt from state income and property taxes, and
sometimes sales tax.

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