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 New York State, property tax is primarily a local government revenue source, not a state tax. Local governments, such as counties, cities, towns, and school districts, assess property tax to fund various services including education, infrastructure, and public safety. New York does not have a state property tax. Property tax exemptions in New York are available for various categories of property owners and uses, such as the STAR (School Tax Relief) program, which provides a partial exemption for primary residences. Other common exemptions include those for senior citizens, veterans, agricultural properties, and non-profit organizations. To benefit from these exemptions, property owners must apply with their local assessor's office, and the application deadlines can vary by jurisdiction. The requirements for these exemptions are detailed in the New York State Real Property Tax Law, and property owners should review these statutes or consult with an attorney to understand the specific qualifications and procedures for obtaining an exemption.