Is “Untaxed” a Scrabble word?

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Yes
UNTAXED
Valid in at least one Scrabble dictionary

Valid in these dictionaries

SOWPODS / CSW
Scrabble UK & International
Valid
TWL / NWL
Scrabble North America
Valid
Large English Dictionary
General English word list
Valid

Meaning of Untaxed

adjective
  1. 1.Not subject to being taxed.

    During August, clothes costing less than $75 are untaxed, to try to help the poor to buy clothes and the merchants to make money.

  2. 2.Not having had the required taxes paid on it.

    Bootleggers make good money selling untaxed cigarettes, until they are caught.

  3. 3.Not tired or strained, working well within capacity.

    The motor was untaxed by the steep hill because the vehicle was so lightly loaded.