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

Labor Taxes

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor: Yearick
Last action: 2025-04-08
Official status: House Revenue & Finance 4/8/25
Effective date: Not listed

Plain English Breakdown

The official source does not provide specific details about the effective date or other tax changes beyond pensions.

Increase in Pension Exclusion for Personal Income Tax

The bill raises the amount of pensions that can be excluded from Delaware personal income tax from $12,500 to $25,000.

What This Bill Does

Increases the pension exclusion limit from $12,500 to $25,000 for people aged 60 or older starting in 2025.
Keeps existing lower limits of $2,000 and $12,500 for those under age 60 who receive pensions from employers or military pensions.
Increases the military pension exclusion limit to $25,000 for individuals under 60 starting in 2025.

Who It Names or Affects

People aged 60 or older who receive pensions from their employer, the U.S., Delaware, or any local government in Delaware.
Individuals receiving military pensions regardless of age.

Terms To Know

Pension: Money paid regularly to a person after they retire, usually based on their previous work.
Personal Income Tax: A tax that individuals pay based on the money they earn from jobs or investments.

Limits and Unknowns

The bill does not change other types of income or taxes.
It is unclear when this bill will become law after passing through committees and further legislative processes.

Bill History

2025-04-08 Delaware General Assembly
Introduced and Assigned to Revenue & Finance Committee in House

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

Read the full stored 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.

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

SYNOPSIS

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