Senate Bill 219 with Senate Amendment 1, legislation sponsored by Senator Eric Buckson, passed the Delaware State Senate unanimously today and now heads to the House of Representatives for further consideration.
SB 219 builds on prior efforts to support Delaware’s military retirees by increasing the state income tax exemption for military pension income. Currently set at $12,500, the exemption will be phased in over three years and increased to $25,000 for all military pensioners beginning in tax year 2029, regardless of age.
Delaware currently remains among the states that partially tax military retirement income, even as 27 states fully exempt it and 12 additional states provide partial exemptions. SB 219 seeks to strengthen Delaware’s competitiveness with neighboring states while recognizing the service and sacrifice of retired members of the United States Armed Forces, including the Coast Guard, Space Force, NOAA Commissioned Officer Corps, and Public Health Service Commissioned Corps.
The bill follows earlier changes enacted in 2022 and 2024 that expanded eligibility and increased partial exemptions for certain military retirees.
“Those who served our country in uniform earned their retirement benefits through years of sacrifice and dedication,” said Senator Buckson. “Our military retirees chose service to this nation, and many choose to make Delaware their home after they finish that service. We should be working to welcome them, not discouraging them with outdated tax policy.”
SB 219 now awaits consideration in the House of Representatives.
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