Is there a Legal Way to NOT pay tax on the money you make from the stock market?

Yes.

Become a clergyman who has taken a vow of poverty, and then live off your church.

Your church income can never be taxed, and because you are not paid to be a clergyman in your church (and have no income that is taxable), you will never pay any taxes.

Have the church be the owner of the stock market shares.

And check with an attorney, before doing ANY of the things I mentioned.

September 4, 2008, 4:24 PM EDT

Sell it at a lower price than you bought it. Then you can count it as a loss on your taxes.

Invest it into something else that allows tax deferment.

To become a legally-ordained clergyman, free of any charges, go here

September 4, 2008, 4:46 PM EDT

To have to pay NO taxes
....have the money in a Roth IRA, Educational Savings Account (ESA) or College 529 Plan

To have the tax payments DEFERRED (meaning allow taxes to work to earn even more money and theoretically pay at a lower tax rate when you w/d the money)
.....have money in a qualified retirement account (e.g. 401K, SEP IRA, Solo 401K/Keogh, etc.)

Yes, Retirement funds are tax sheltered.