Veterans will be getting a tax break on their pension income under a bill approved by the Delaware General Assembly.
Sponsored by State Sen. Eric Buckson (R-Dover) and State Rep. Jeff Hilovsky (R-Long Neck, Oak Orchard), Senate Bill 219 (as amended) would gradually, over three years, increase the income tax exclusion on military pensions from $12,500 to $25,000.
To be eligible for this exemption, veterans who are 60 or older and were legal Delaware residents before January 1, 2027, must have resided in the state for at least 3 years. Veterans in the same age group who become legal residents after this date must reside here for at least five years to claim the benefit.
When fully phased in, the tax break is expected to collectively save the state’s retired veterans about $2.8 million per year.
The bill awaits the governor’s review.
