Veterans will soon be getting a tax break on their pension income under a bill signed into law earlier this week by Gov. Meyer.
Sponsored by State Sen. Eric Buckson (R-Dover) and State Rep. Jeff Hilovsky (R-Long Neck, Oak Orchard), Senate Bill 219 (as amended) doubles the income tax exclusion on military pensions from $12,500 to $25,000. The higher exclusion would be phased in over three years.
To be eligible, veterans who are 60 or older and are 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.
“Making Delaware a more attractive place for military retirees and their families is a step that will benefit all of us,” Rep. Hilovsky said. “This law provides meaningful tax relief to the men and women who served our nation while encouraging them to make Delaware their home. Veterans bring skills, leadership, and a track record of selflessness that will strengthen any community they choose to live in.”
Of the 41 states that levy an income tax, 27 fully exempt military retirement pay, and 12 partially exempt it.
When fully implemented, the tax break is expected to collectively save the state’s retired veterans about $2.8 million per year.
