There are many different types of benefits in regards to taxable income. The different options can result in lowering someone's tax bracket or taxable income, therefore saving money. Tax deferment is one example, tax deductions are another. Both of those methods often result in lower taxes that an individual or business must comply with, but they still require taxes to be paid. A tax exemption means that a person or an organization does not have to pay taxes. There are a few different methods of tax exemptions that are used. There are a number of different factors that can qualify a person or a business for tax exemption. Some of these considerations include the age of the person, whether or not they are a veteran, what type of property they own (for example farm or home) and the income level of that person.