None taken is a reply meaning you were not upset by the remark. No offence meant, none taken.
It answers no offence and closes the exchange neatly. Said flatly it can mean the opposite, and both people know it.
1phrasenone takenA reply meaning you were not upset by the remark.
“He apologised for the joke and she said none taken.”
none taken is a phrase.
Practised in Small Talk & Everyday Phrases