The homestead exemption allows lowincome senior citizens and permanently and totally disabled Ohioans, to reduce their property tax bills. Depending on your disability rating, income and the state you live in, you may be able to receive a partial or full property tax exemption.The homestead exemp- tion provides a reduction in property taxes to qualified senior or disabled citizens, or a surviving spouse, on the dwelling that is that. The property tax is the linchpin of independent local government in the United States and offers key strengths as a local revenue source.