A person may hold only one homestead exemption at a time. The Department recognizes three categories of property tax exemption: General.Restricted, and Individual. The Arizona homestead exemption is automatic you don't have to file a homestead declaration to claim the homestead exemption in bankruptcy. See the list of exemption codes below. Where does a Senior apply for an exemption or freeze? Apply at the office of your county tax assessor. The dollar amount of this exemption is increased annually. In other words, a resident cannot claim the homestead exemption to protect against the foreclosure of a mortgage, a materialmen's lien or a government tax lien. Solely in order to provide or release security for a debt or obligation, including a trustee's deed pursuant to power of sale under a deed of trust. 2.