An "exemption limit" refers to the maximum amount of income or value that is not subject to taxation or legal claims. This limit allows individuals or entities to retain a certain portion of their earnings without having to pay taxes on it. For example, in the context of income tax, if the exemption limit is set at $10,000, any income earned below this threshold would not be taxed. Exemption limits can vary based on different factors, such as jurisdiction, tax laws, and the type of income. They are often adjusted annually to account for inflation or changes in economic conditions. Understanding these limits is essential for effective financial planning and compliance with tax regulations.