Arizona law does not recognize federal property exemptions, but establishes exemptions specific to Arizona residents. More information on the Homestead Exemption may be found in the Department publication entitled Overview of the Arizona Property Tax System . 4.It involves completing a form and submitting it to the county recorder's office. What is Arizona's Homestead Exemption? To qualify, you must live in the home as your primary residence. Any person eighteen years of age or over, married or single, who resides within this state may hold as a homestead exempt from execution and forced sale. To qualify, you must live in the home as your primary residence. What is the Arizona Homestead Exemption? It can also protect your home from bankruptcy or provide a surviving spouse with ongoing property tax relief. You must live in the home to qualify for the tax break.