What is your Homestead Exemption?If you are using the home as your primary residence it is known as your homestead. The homestead exemption removes part of the value of your property from taxation which lowers your tax bill. Travis County offers a 20 percent exemption. For example, if your property is valued at $300,000 the homestead exemption would remove 20 percent off the value of your home ($60,000) so you would pay county taxes on your home as if it were worth only $240,000. That would be an annual tax saving of $1,425.