DOVER, Del. — Delaware veterans will soon be able to exclude more of their military pension income from state taxes under a new law signed by Gov. Matt Meyer.
Senate Bill 219 increases the state income tax exclusion for military pensions from $12,500 to $25,000. The increase will be phased in over three years, reaching the full $25,000 exemption in 2029.
The legislation was sponsored by state Sen. Eric Buckson, R-Dover, and state Rep. Jeff Hilovsky, R-Long Neck, Oak Orchard.
Veterans who are at least 60 years old and were legal Delaware residents before Jan. 1, 2027, must have lived in the state for at least three years to qualify for the benefit. Veterans who become Delaware residents after that date must establish residency for at least five years.
The exemption will increase to $15,000 in 2027, $20,000 in 2028 and $25,000 in 2029.
“Making Delaware a more attractive place for military retirees and their families is a step that will benefit all of us,” Hilovsky said in a statement.
According to the Delaware House Republican Caucus, the expanded exemption is expected to save the state’s retired veterans a combined $2.8 million per year once fully implemented.
The Delaware General Assembly approved the legislation July 1.
