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 Indiana, property tax is primarily administered at the local level by county assessors, and there is no state property tax. The revenue from property taxes is used to fund essential services such as schools, roads, public safety, and other local government services. Indiana offers various property tax exemptions that can reduce or eliminate the property tax liability for eligible property owners. Common exemptions include those for homesteads, which is the primary residence of the owner, as well as for charitable, religious, and agricultural properties. Additionally, Indiana provides property tax deductions for individuals who are 65 years of age or older, disabled persons, veterans, and surviving spouses of veterans. To benefit from these exemptions, property owners must apply with their local county assessor's office, and there are specific deadlines for these applications. The details of these exemptions, including eligibility criteria and application procedures, are outlined in Indiana's tax code. Property owners should review these statutes or consult with an attorney to understand the exemptions for which they may qualify.