Buy a declared homestead form from an office-supply store, or download a form from the Registrar-Recorder's website. Complete form BOE-266, Claim for Homeowners'.Property Tax Exemption. Complete a homestead declaration form. The new law eliminates many qualifying conditions and provides a homestead exemption to anyone with a principal residence. To qualify for the homeowners' exemption, the home must have been the principal residence of the owner as of January 1 of that tax year. It is a local option to establish two separate property tax rates: a lower tax rate for residential property owners. You don't have to file a homestead declaration to claim the homestead exemption in bankruptcy. In California, the bankruptcy homestead exemption is automatic. You can also get a California homestead exemption on property taxes, in which you're taxed on the value of your home minus the exemption amount.
