Homestead Exemption is one way to reduce the amount of property tax you pay on your residential property. The Arizona homestead exemption is automatic, meaning that no written claim is required.You must file with the county or city where your home is located. Each county has different applications and required documents. To qualify, you must live in the home as your primary residence. Application for Property Tax Exemption. To establish eligibility for property tax exemption, the claimant must sign and file an affidavit with the County. The Homestead Exemption allows for a partial exemption on a portion of the assessed value of your primary home which lowers the amount of property tax you owe. The deadline for submitting applications is June 1. An annual application is required for continued participation in the Circuit Break Program!