How long does it take to process a homestead exemption application? It can take up to 90 days to process a homestead exemption application.Domicile is intended to be permanent rather than temporary, whereas residence means living in a particular locality and requires mere physical presence. A general residential homestead exemption is available to taxpayers who own and reside at a property as of January 1 st of the year. Domicile refers to the place you call home permanently. Your domicile is important for legal purposes such as paying taxes, voting, and claiming benefits. The crux of eligibility for homestead exemptions in Texas is that the property in question must be your principal residence.