What is Homestead Exemption? If you own your home, reside there permanently and are a Florida resident as of January 1, you may qualify for homestead exemption.Applicants must file a Form CC-501 – Original Application for Homestead and Related Tax Exemptions, to apply for the homestead exemption on the new homestead. To qualify, you need to apply for the exemption and provide relevant documentation. The Property Appraiser's Office also determines exemptions for Homestead, Disability, Widows, Veterans and many others. To qualify you must be a permanent resident of Florida as of January 1st of the year in which you apply for the exemption. A homestead exemption is a reduction in the assessed value of your property for tax purposes.