The term 'EXEMPT' is a six-letter word that means 'not subject to taxes'. It is often used in the context of taxation, where certain items or services are EXEMPT from taxation. This means that they are not subject to the same taxes as other items or services. For example, some medical expenses may be EXEMPT from taxation, while other items may be subject to taxation. Exemptions can also be granted to certain individuals or organizations, such as charities, which are not subject to taxation.