Etymology
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exempt (adj.)

late 14c., "not subject to (a rule, law, authority, etc.)," from Old French exempt (13c.) and directly from Latin exemptus, past participle of eximere "remove, take out, take away; free, release, deliver, make an exception of," from ex "out" (see ex-) + emere "to buy," originally "to take," from PIE root *em- "to take, distribute." Also in Middle English in a more general sense, "taken away, cut off (from), removed (from)."

exempt (v.)

c. 1400, exempten, "to relieve, to free or permit to be free" (from some requirement or condition, usually undesirable), from Anglo-French exempter, from exempt (adj.); see exempt (adj.). Related: Exempted; exempting.

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Definitions of exempt
1
exempt (v.)
grant relief or an exemption from a rule or requirement to;
She exempted me from the exam
Synonyms: relieve / free
exempt (v.)
grant exemption or release to;
Synonyms: excuse / relieve / let off
2
exempt (adj.)
(of persons) freed from or not subject to an obligation or liability (as e.g. taxes) to which others or other things are subject;
exempt from jury duty
only the very poorest citizens should be exempt from income taxes
a beauty somehow exempt from the aging process
exempt (adj.)
(of goods or funds) not subject to taxation;
income exempt from taxation
Synonyms: nontaxable
From wordnet.princeton.edu