The Homestead Exemption reduces the taxable portion of your property assessment if you own your primary residence in Philadelphia. The Taxpayer Relief Act provides for property tax reduction allocations to be distributed to school districts through a "homestead or farmstead exclusion."Who qualifies: Anyone who owns the home they live in. "There is no income or age requirement for this program. Please read the instructions before completing this application. Basic Information. 1. The Homestead Exemption. The Homestead Exemption reduces the taxable portion of your property's assessed value.