A homestead exemption is a legal provision that offers homeowners a partial exemption on the appraised value of their primary residence. How to Complete the Application.Fill out the other side of this application completely. Most counties have the homestead exemption form online. Applying for the homestead exemption is FREE and easy. This video will cover how to fill out the homestead exemption form. Discover how to lower your property taxes in Texas with this guide to homestead exemptions. A Texas homestead exemption is a tax break for homeowners who qualify. The program must require the Chief Appraiser to review each residence homestead exemption at least once every five tax years. Homestead exemptions can help lower the property taxes on your home.