The Homestead Exemption reduces the taxable portion of your property assessment if you own your primary residence in Philadelphia. You must have owned the property as of January 1.The Taxpayer Relief Act provides for property tax reduction allocations to be distributed to school districts through a "homestead or farmstead exclusion." Local Homestead Exemption. The mission of the Department of Community and Economic Development (DCED) is to foster opportunities for businesses to grow and for communities to succeed. Applying for a homestead exemption differs depending on the state. In some states, the homestead exemptions are automatic. If approved, the limit would last as long as owners maintain a homestead exemption, typically as long as they own a home. Loan Assistance Tool. The filing deadline for qualified applicants to receive consideration for a Homestead exemption for property taxes is March 1.