Laws vary from state to state, but property tax is often a locally assessed and locally administered tax (by counties)—and in those states there is no state property tax. Property tax brings in the most money of all taxes available to local government to pay for schools, roads, police and firemen, emergency response services, libraries, parks, and other services provided by local government.

Most states offer a variety of partial or total (absolute) exemptions from appraised property values used to determine local property taxes. A partial exemption removes a percentage or a fixed dollar amount of a property's value from taxation. A total (absolute) exemption excludes the entire property from taxation. Taxing units (government entities) may be required by the state to offer certain (mandatory) exemptions and have the option to decide locally on whether or not to offer others (local option).

Exemptions from property tax usually require the taxpayer to apply for the exemption. Applications for property tax exemptions are filed with appraisal districts, and deadlines may vary. Appraisal district chief appraisers are responsible for determining whether a property qualifies for an exemption.
Exemptions are usually located in a state’s tax code (statutes) and exemption requirements are often extensive. Property owners should read these statutes carefully.

Common exemptions are for properties that qualify as a residence homestead or are eligible for charitable, religious, or agricultural exemptions, as provided by the state’s tax laws. Disabled persons, senior citizens (age 65 or older), veterans, and surviving spouses of veterans who were killed in action (KIA) are also eligible for exemptions in some states.

In California, property tax is primarily administered at the county level, with no state property tax imposed. The revenue from property taxes is used to fund local services such as schools, roads, public safety, and other community amenities. California offers a variety of property tax exemptions, including partial and total exemptions. Common exemptions include those for a primary residence (homestead exemption), as well as for charitable, religious, and agricultural properties. Additionally, California provides property tax relief for certain groups such as disabled persons, senior citizens (over the age of 55 may qualify for transfer of their tax base under certain conditions), and veterans. The California Revenue and Taxation Code outlines the specific requirements for these exemptions, and property owners must apply for them through their local county assessor's office. Deadlines for applications can vary by county, and it is the responsibility of the county assessor to determine eligibility for exemptions. Property owners should review the relevant statutes and guidelines carefully to understand the exemption process and requirements.