Arizona law does not recognize federal property exemptions, but establishes exemptions specific to Arizona residents. The Arizona homestead exemption is automatic you don't have to file a homestead declaration to claim the homestead exemption in bankruptcy.Application for Property Tax Exemption. To establish eligibility for property tax exemption, the claimant must sign and file an affidavit with the County. Alternatively, you can visit your state's Department of Revenue website for details on how to file a property tax exemption with your county. What is Arizona's Homestead Exemption? Homestead tax exemptions allow homeowners to lower the amount of property taxes they pay. These exemptions might be based on a percentage of the home's value. A homestead exemption is a legal provision that shields a home from some creditors following the death of a homeowner's spouse or the declaration of bankruptcy. A county or local tax assessor's website or office will provide details on available homestead tax exemptions.
