Delaware veteran benefits

Delaware gives a pension income tax exclusion that a 2026 law is doubling for military pensions, and 100% disabled veterans can get a credit covering school property taxes. The state has no sales tax.

Military retirement payDelaware lets people 60 and older exclude up to $12,500 of pension income (under 60, up to $2,000). A 2026 law (Senate Bill 219) raises the military pension exclusion to $25,000 for veterans 60 or older, phased in over three years, with residency requirements.
Property taxVeterans with a permanent and total 100% VA disability (or individual unemployability) who have lived in Delaware 3 years can apply for a credit covering 100% of the non-vocational school district property tax on their primary home. Apply by April 30.
Pension income exclusion
Taxes
People 60 or older can exclude up to $12,500 of pension income, and military retirees will see a higher exclusion phased in under SB 219.
Military pension exclusion increase
Taxes
SB 219, signed in August 2026, doubles the military pension exclusion to $25,000 over three years for veterans 60 or older with residency requirements.
Disabled Veterans School Tax Credit
Taxes
100% permanently disabled veterans can get a credit for all non-vocational school district property tax on their primary residence; the application deadline is April 30.
No state sales tax
Taxes
Delaware has no general sales tax, which helps stretch retirement and disability income.
Delaware Veterans Home
Health & Homes
Delaware has a state veterans home; ask the Commission of Veterans Affairs about admission.
Delaware Veterans Memorial Cemeteries
Burial
Delaware has state veterans cemeteries; contact the Commission for eligibility.
Veteran license plates and driver license designation
Vehicles & ID
Delaware DMV offers veteran plates and a veteran designation on licenses; check the DMV for fees.
Education benefits for National Guard and families
Education
Delaware has education benefits for National Guard members and survivors; contact the Commission for current programs.
Hiring preference
Jobs
Delaware gives veterans preference points on state merit hiring; ask the Office of Human Resources for details.

Last checked 2026-11. State rules change often; confirm with Delaware Commission of Veterans Affairs before you rely on any benefit.

Sources