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2026 rules · verified against Delaware's primary source
Delaware partially exempts military retirement pay (up to about $12,500); the rest is taxable.
Exclude up to $12,500 of military pension from Delaware income tax (under-60 military-pension exclusion; age 60+ covered by the $12,500 general retirement exclusion). A 2024 bill to raise it to $25,000 did not pass.
Treatment
partially exempt
Exemption up to
$12,500
Top marginal rate
6.60%
Source: https://delcode.delaware.gov/title30/c011/sc02/index.html · 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