DOVER, Del. — Delaware will increase the amount of military retirement income that can be excluded from state income taxes under legislation signed into law. Senate Bill 219 increases the military pension income tax exemption from the current $12,500 to $15,000 in 2027, $20,000 in 2028 and $25,000 beginning in 2029, regardless of the retiree’s age.
The legislation was sponsored by Sen. Eric Buckson, R-South Dover, and Rep. Jeff Hilovsky, R-Long Neck. “Military retirees dedicated years of their lives to serving our country, and they should not be penalized simply because they choose to call Delaware home,” Buckson said. “This legislation recognizes that service and makes Delaware a more attractive place for those who have earned their retirement through a career in the military. I am proud to see this become law.”
The legislation builds on a change made in 2022, when Delaware increased the military pension exclusion for taxpayers under age 60 to $12,500. SB 219 takes effect for taxable years beginning on or after Jan. 1, 2027. The full $25,000 exemption takes effect for taxable years beginning Jan. 1, 2029.
“Making Delaware a more attractive place for military retirees and their families is a step that will benefit all of us,” Hilovsky said. “This law provides meaningful tax relief to the men and women who served our nation while encouraging them to make Delaware their home. Veterans bring skills, leadership, and track record of selflessness that will strengthen any community they choose to live in.”
Buckson and Hilovsky are scheduled to join military veterans, community leaders, advocates and elected officials Wednesday for an event celebrating the legislation. The event is scheduled from 1 to 2 p.m. Sept. 9 at the Air Mobility Command Museum, 1301 Heritage Road in Dover, next to Dover Air Force Base.
The event and museum are open to the public.
