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State Benefit·Delaware·🏛️Tax Benefits

Military Retirement Pay Income Tax Exclusion

Up to $25,000 of military pension income excluded from Delaware state income tax (effective tax year 2026).

Verified May 12, 2026againstlegis.delaware.gov

At a glance

Benefit type
Tax Benefits — Delaware
Who it's for
Veterans
VA rating needed
No rating requirement
Estimated value
Up to $1,650/year in tax savings
Where it applies
Delaware
Last verified
May 12, 2026

What is Military Retirement Pay Income Tax Exclusion?

Military Retirement Pay Income Tax Exclusion is a Delaware tax benefits benefit for veterans. Up to $25,000 of military pension income excluded from Delaware state income tax (effective tax year 2026). The listed value is Up to $1,650/year in tax savings.

Who qualifies

Veterans
  • Available to any veteran
  • Delaware residency

How to apply

Apply through the official Delaware agency.

Open application

Who is eligible

Eligibility

Any individual receiving a U.S. military pension (all ages). Must file Delaware state taxes.

Covers (per SB 201, signed 2022): Phased exclusion of military pension income — $15,000 (2024), $20,000 (2025), $25,000 (2026 and beyond). At Delaware's top marginal rate of 6.6%, the 2026 exclusion saves up to $1,650/year.

How to apply for Military Retirement Pay Income Tax Exclusion

How to apply

Via Delaware state income tax return (Schedule W / pension exclusion line).

Open applicationVerify at official source

Verified information & sources

Last verified: May 12, 2026

Official source: legis.delaware.gov

Apply at: revenue.delaware.gov

Compiled and fact-checked against the official source linked above. Benefit rules and dollar amounts change over time — always confirm current details at the official source before applying. A county Veterans Service Officer (VSO) is a free, accredited advocate who can review your eligibility and help you file at no cost.

Frequently asked questions about Military Retirement Pay Income Tax Exclusion

Who qualifies for Military Retirement Pay Income Tax Exclusion?▾
Military Retirement Pay Income Tax Exclusion is for Veterans; available to any veteran; delaware residency. See the eligibility details on this page and confirm with the official source before applying.
How much is Military Retirement Pay Income Tax Exclusion worth?▾
The listed value is Up to $1,650/year in tax savings. Amounts can change — confirm the current figure at the official source linked on this page.
How do I apply for Military Retirement Pay Income Tax Exclusion?▾
Apply through the official source linked on this page. A county Veterans Service Officer (VSO) can review your eligibility and help you file at no cost.
Where can I verify Military Retirement Pay Income Tax Exclusion?▾
Benefit rules and dollar amounts change, so always confirm current details at the official source linked on this page. A free, accredited county or state Veterans Service Officer (VSO) can also verify your eligibility and help you apply.

Other Delaware Tax Benefits

Disabled Veterans School District Property Tax Credit

100% credit against school district property tax for veterans with 100% permanent and total disability.

$500-$2,000+ per year

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