A tax exemption is a provision that allows certain individuals or organizations to reduce or eliminate their tax liability. This means they do not have to pay taxes on specific income or property. Common examples include exemptions for charitable organizations, nonprofits, and certain types of income, such as gifts or inheritances. Tax exemptions can also apply to specific groups, such as students or disabled individuals, who may qualify for reduced tax rates or complete exemptions. These exemptions help to alleviate financial burdens and encourage certain behaviors, like charitable giving or supporting education.