AN ACT TO AMEND TITLE 30 OF THE DELAWARE CODE RELATING TO EXCLUSION OF MILITARY PENSIONS FROM TAXABLE INCOME.
AN ACT TO AMEND TITLE 30 OF THE DELAWARE CODE RELATING TO EXCLUSION OF MILITARY PENSIONS FROM TAXABLE INCOME.
Taxes
Passed Legislature
This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.
Sponsor
Last action
2026-01-08
Official status
Effective date
Not listed
Plain English Breakdown
Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.
AN ACT TO AMEND TITLE 30 OF THE DELAWARE CODE RELATING TO EXCLUSION OF MILITARY PENSIONS FROM TAXABLE INCOME.
AN ACT TO AMEND TITLE 30 OF THE DELAWARE CODE RELATING TO EXCLUSION OF MILITARY PENSIONS FROM TAXABLE INCOME.
What This Bill Does
AN ACT TO AMEND TITLE 30 OF THE DELAWARE CODE RELATING TO EXCLUSION OF MILITARY PENSIONS FROM TAXABLE INCOME.
Of the 41 states with a state income tax, 27 states fully exempt military retirement pay from state income taxes and 12 states partially exempt military retirement pay.
In 2022, Delaware increased the pension exclusion for military pensioners under 60 to $12,500, and in 2024, Delaware expanded the definition of a United States military pension to include a pension received for an individual’s service in the commissioned corps of the National Oceanic and Atmospheric Administration and the commissioned corps of the Public Health Service and clarified that the armed forces of the United States includes the Space Force and Coast Guard.
This Act phases in, over 3 years, an increased exemption for military pensions from state income taxation, regardless of age, which is currently $12,500, so that in taxable years beginning on or after January 1, 2029, the exemption will be $25,000 for all military pensioners.
Limits and Unknowns
This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.
Bill History
No action history is stored for this bill yet.
Official Summary Text
AN ACT TO AMEND TITLE 30 OF THE DELAWARE CODE RELATING TO EXCLUSION OF MILITARY PENSIONS FROM TAXABLE INCOME.
Of the 41 states with a state income tax, 27 states fully exempt military retirement pay from state income taxes and 12 states partially exempt military retirement pay.
In 2022, Delaware increased the pension exclusion for military pensioners under 60 to $12,500, and in 2024, Delaware expanded the definition of a United States military pension to include a pension received for an individual’s service in the commissioned corps of the National Oceanic and Atmospheric Administration and the commissioned corps of the Public Health Service and clarified that the armed forces of the United States includes the Space Force and Coast Guard.
This Act phases in, over 3 years, an increased exemption for military pensions from state income taxation, regardless of age, which is currently $12,500, so that in taxable years beginning on or after January 1, 2029, the exemption will be $25,000 for all military pensioners.