text: what does homestead discount mean in property tax? what kind of home owner can get this discount? besides, why "less 920 reduce" amount get changed every year? what that means? thank you! a homestead exemption is a discount you have to apply for to have the property tax due reduced. tax collected is based on the value of your property as well as the tax rate. you can only apply for a homestead exemption if it is your primary dwelling.  the amount will change every year because the value of your home will generally go up.   property tax is how the city, county, and state collect revenue.