Military Retirement Pay Income Tax Exclusion
Up to $25,000 of military pension income excluded from Delaware state income tax (effective tax year 2026).
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Apply directly through the official Delaware agency.
About this benefit
Eligibility
Any individual receiving a U.S. military pension. Must file Delaware state taxes.
Covers
Up to $20,000 excluded (tax year 2025); up to $25,000 excluded (tax year 2026 onward). At Delaware's top marginal rate of 6.6%, this saves up to $1,650/year.
How to apply
Via Delaware state income tax return (Schedule A adjustments).
Verified against official source
Last checked 2026-05-06 against legis.delaware.gov. Always confirm current rates and rules with the Delaware state agency before applying.
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