How to exclude nodes with a taxonomy term from XML Sitemap?
You can use hook_xmlsitemap_element_alter() to check if the node has a particular taxonomy term &amp; exclude it.

function MYMODULE_xmlsitemap_element_alter(&amp;$element, $link, $sitemap) {
  // Check if link is a node link
  if ($link['type'] == 'node') {
    $node = node_load($link['id']);

    // Code to check if $node has taxonomy term goes here
    if ($node has taxonomy term) {
      $element['disabled'] = TRUE; // This removes the node link from sitemap
    }
  }
}