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2026 rules · verified against Delaware's primary source
Delaware partially exempts military retirement pay (up to about $25,000); the rest is taxable.
Exclude up to $25,000 of military pension, any age, for tax years 2026 and later (SB201, enacted 2022, phased in $15,000 for 2024, $20,000 for 2025, $25,000 for 2026+). Verified 2026-08-09 against Delaware General Assembly SB201. (A separate later bill, SB219, to raise it further was not yet law as of mid-2026.)
Treatment
partially exempt
Exemption up to
$25,000
Top marginal rate
6.60%
Source: https://legis.delaware.gov/BillDetail?LegislationId=140803 · verified July 2026
Estimated Delaware state income tax on your military retirement, using the top marginal rate on the taxable portion (an upper bound; your effective rate is usually lower).
More Delaware: all Delaware veteran benefits · military retirement tax in every state · what your pension is worth