The Arizona homestead exemption is automatic, meaning that no written claim is required. First, you must be an Arizona resident.Second, the home you are claiming as your homestead must be in Arizona. What is Arizona's Homestead Exemption? Application for Property Tax Exemption. To establish eligibility for property tax exemption, the claimant must sign and file an affidavit with the County. It involves completing a form and submitting it to the county recorder's office. 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. The Department recognizes three categories of property tax exemption: General. Restricted, and Individual.