The homestead can't exceed one acre in a city or 160 acres in a rural area. Homestead tax credits provide a discount or rebate to taxpayers based on the amount of property taxes due in a given year.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. The Homestead Act of 1862 has been called one of the most important pieces of Legislation in the history of the United States. Don't waste time filling out and mailing the paper HCAD homestead exemption form! In Missouri, the homestead exemption applies to real property, including your home, condominium, or coop.