The homestead exemption allows lowincome senior citizens and permanently and totally disabled Ohioans, to reduce their property tax bills. Disabled, as defined for Ohio's homestead exemption program.A homestead exemption reduces the amount of property taxes homeowners owe on their legal residence. Douglas County has additional exemptions. Under the amendment, counties, consolidated governments, municipalities, or local school systems could choose to opt out of the homestead exemption. To ensure you qualify, be sure to click the link next to the summary to see your state's complete tax exemption requirements. Homestead: This exemption can help homeowners reduce state property taxes and protect surviving spouses from creditors. Loan Assistance Tool.