In addition, it is very common that religious institutions are exempted from tax. Naturally, this gives rise to the question of what constitutes an actual religion which, in some cases, is not always clear. The tax exemption given to organizations such as charities or religious institutions may carry with it certain obligations too. For example, tax exemption may be a requirement that the organizations refrain from political campaigning.

It is also common for educational institutions such as schools and universities to be exempted from tax. In some countries, some or all of the employees of the government or of other governments may be exempted from tax.

In the case of sales or value added taxes, many countries declare certain types of good to be exempt from the tax. For example, it is common for books to be declared free of such taxes.