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SB 219

AN ACT TO AMEND TITLE 30 OF THE DELAWARE CODE RELATING TO EXCLUSION OF MILITARY PENSIONS FROM TAXABLE INCOME.

153rd General Assembly (2025-2026) Introduced by Darius Brown and 24 co-sponsors

Delaware bill excludes military pensions from state income tax, reducing veteran tax burden but decreasing state revenue and potentially creating unequal treatment across public sector retirees.

Passed By House. Votes: 40 YES 1 ABSENT
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WeVote Research Nonpartisan
Bill Summary · SB 219

Legislative bill overview

SB 219 proposes to amend Delaware's tax code to exclude military pensions from taxable income for state income tax purposes. This would allow military retirees and veterans receiving pension benefits to deduct those amounts when calculating their Delaware state income taxes, similar to provisions some other states have implemented.

Why is this important

Military pensions are a critical income source for retired service members, and tax exclusions directly increase their take-home income. This policy affects an identifiable population (military veterans) and represents a potential revenue loss to the state budget, while potentially incentivizing military retirees to relocate to or remain in Delaware.

Potential points of contention

  • Revenue impact: Excluding military pensions reduces state tax revenue; the fiscal cost depends on how many military retirees claim the benefit and average pension amounts
  • Equity concerns: Creates preferential tax treatment for one occupational group; other public sector retirees (teachers, police, state employees) may argue for similar exclusions
  • Scope definition: Unclear whether the exclusion applies to all military pensions (federal, state, reserve) or includes survivor benefits and disability compensation

Compiled from official sources — confirm details with the bill’s official record.

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