Delaware / State / 153rd General Assembly, 2026

85 Del. Laws c. 426 (SB 219 with SA 1) Phased the military pension exclusion up from $12,500 to $25,000 for every age, and added a domicile test for retirees aged 60 or older

Watching a later dateEnactedFigure movedScope changed

Signed 2026-08-17 · Takes effect 2027-01-01

Amended 30 Del. C. § 1106(b)(3). For 2027 a taxpayer of any age may subtract the greater of the ordinary pension exclusion or $15,000 of United States military pension, for 2028 $20,000 and from 2029 $25,000. Before it a retiree aged 60 or older had no military-specific figure and shared one $12,500 exclusion with every other pension and retirement income. Senate Amendment 1 made the limits apply to each spouse separately on a joint return and added paragraph f.4., which lets a person aged 60 or older take any subtraction under paragraph (3) only after three years of Delaware domicile, or five if domiciled on or after January 1, 2027. The paragraph imposes nothing on a retiree under 60. Signed August 17, 2026, per the General Assembly’s bill record; the 2026 session laws are not yet published online, and the chapter number is the one the Code prints in the section history. Watching because the first increase applies to tax year 2027.