Amount of money a taxpayer can exclude from personal income for each member of the household in calculation of a tax obligation. Bloomberg Financial Dictionary
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the amount of income that each person can have each year without paying tax on it; = personal allowance Bre:
• The basic personal exemption would increase by more than the rate of inflation.
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personal exemption UK US noun [C] US (UK personal allowance)
► TAX the amount of income you can earn each year before paying tax: »
The personal exemption for all taxpayers has been increased by $200 to $2,600.
Financial and business terms. 2012.