AN ACT TO AMEND TITLE 30 OF THE DELAWARE CODE RELATING TO PERSONAL INCOME TAX MODIFICATIONS SUBTRACTED FROM FEDERAL ADJUSTED GROSS INCOME.

Plain English Breakdown

The official status label in metadata says 'Passed Legislature,' but the last action date and digest text indicate it was only introduced on April 8, 2025. The explanation reflects the content of the bill as written rather than its final legal status.

HB108: Updating Delaware Pension Tax Exclusion Amounts

This bill updates the amounts of pension and military retirement income that can be subtracted from federal adjusted gross income for Delaware personal income tax purposes starting in taxable years beginning on or after January 1, 2025.

What This Bill Does

• Increases the maximum subtraction amount to $25,000 for persons age 60 or older receiving pensions or eligible retirement income for taxable years beginning on or after January 1, 2025.
• Raises the United States military pension exclusion limit from $12,500 to $25,000 for persons under age 60 effective for taxable years beginning on or after January 1, 2025.
• Keeps the general pension subtraction at $2,000 for taxpayers under age 60 who do not receive a United States military pension.
• Amends Title 30 of the Delaware Code to update these subtraction amounts from federal adjusted gross income.

Who It Names or Affects

• Delaware residents age 60 or older receiving pensions or eligible retirement income for taxable years beginning on or after January 1, 2025.
• Delaware residents under age 60 who receive a United States military pension for taxable years beginning on or after January 1, 2025.

Terms To Know

Federal Adjusted Gross Income

The total amount of income calculated according to federal rules before state-specific changes are made.

Pension Exclusion

A specific dollar amount of pension or retirement money that is subtracted from income so it does not have to be taxed by the state.

Limits and Unknowns

• The bill text sets rules for taxable years beginning on or after January 1, 2025, but an official effective date has not been listed in the provided metadata.
• The source does not define what specific types of income count as 'eligible retirement income' beyond listing it alongside pensions.

Official Summary Text

AN ACT TO AMEND TITLE 30 OF THE DELAWARE CODE RELATING TO PERSONAL INCOME TAX MODIFICATIONS SUBTRACTED FROM FEDERAL ADJUSTED GROSS INCOME.
This bill increases the personal income tax pension exclusion from $12,500 to $25,000.

Current Bill Text

Legislation Document

SPONSOR:

Rep. Yearick & Rep. Shupe & Sen. Wilson

Reps. Gray, Hilovsky, Bolden; Sen. Lawson

HOUSE OF REPRESENTATIVES

153rd GENERAL ASSEMBLY

HOUSE BILL NO. 108

AN ACT TO AMEND TITLE 30 OF THE DELAWARE CODE RELATING TO PERSONAL INCOME TAX MODIFICATIONS SUBTRACTED FROM FEDERAL ADJUSTED GROSS INCOME.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:

Section 1. Amend § 1106, Title 30 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:

§ 1106. Modifications [For application of this section, see 83 Del. Laws, c. 338, §?2].

(b)

Subtractions. —

There shall be subtracted from federal adjusted gross income:

(3) a. For taxable years beginning before January 1, 2022:

1. Amounts received, not to exceed $2,000, by persons under age 60 as pensions from employers, the United States, this State, or any subdivision of this State; or

2. Amounts received, not to exceed $12,500, by persons age 60 or older as pensions from employers, the United States, this State, or any subdivision of this State, or as eligible retirement income.

b. For taxable years beginning on or after January 1, 2022

and before January 1, 2025

:

1. For persons under age 60, the greater of:

A. Amounts received, not to exceed $2,000, as pensions from employers, the United States, this State, or any subdivision of this State; or

B. Amounts received, not to exceed $12,500, as a United States military pension.

2. For persons age 60 or older, amounts received, not to exceed $12,500, as pensions from employers, the United States, this State, or any subdivision of this State, or as eligible retirement income.

c. For taxable years beginning on or after January 1, 2025:

1. For persons under age 60, the greater of:

A. Amounts received, not to exceed $2,000, as pensions from employers, the United States, this State, or any subdivision of this State; or

B. Amounts received, not to exceed $25,000 as a United States military pension.

2. For persons age 60 or older, amounts received, not to exceed $25,000, as pensions from employers, the United States, this State, or any subdivision of this State, or as eligible retirement income.

c.

d.

For the purposes of this paragraph (b)(3):

SYNOPSIS

This bill increases the personal income tax pension exclusion from $12,500 to $25,000.