Updated January 2026
Delaware Veteran Benefits 2026
Delaware offers several benefits for veterans and military retirees. Here is a summary of the key tax and property benefits available in DE for 2026.
Delaware Highlights
- Partial military retirement tax exemption
- Property tax exemption for disabled veterans
- Free vehicle registration for disabled veterans
- Delaware Veterans Trust Fund
Income Tax Treatment
Delaware has a state income tax.
Military Retirement Pay: Delaware excludes up to $12,500 of military pension income from state tax regardless of the retiree's age.
Active Duty Pay: Active duty pay may be partially exempt.
VA Disability Compensation: VA disability compensation is tax-free at both the federal and state level in all 50 states. Delaware does not tax VA disability payments.
Property Tax Exemption for Disabled Veterans in Delaware
Type: Income-tax credit (refund)
Delaware gives a 100% credit against the non-vocational school-district portion of property tax on a disabled veteran's primary residence; it is a school-tax credit only, not a full property-tax exemption.
| VA disability rating / category | What you get |
|---|---|
| 100% service-connected (either a 100% schedular rating OR 100% via Individual Unemployability/TDIU) | Credit equal to 100% of the non-vocational school-district property tax on the primary residence. Does not offset county/municipal property taxes.Must have held legal domicile in Delaware for the 3 years prior to applying; primary residence only; cannot also claim the Senior School Property Tax Credit; apply by April 30; must pay prior year's tax bill in full to qualify the following year. |
- Income limit: None
- Age requirement: None
- Surviving spouse: Not specified on the Department of Finance program page; verify whether the credit transfers to an unremarried surviving spouse.
- Counts being paid at 100% via unemployability (TDIU)? Yes — being paid at the 100% rate via Individual Unemployability (TDIU) qualifies
Source: Del. Code tit. 14, § 1917 (Disabled Veterans School Tax Credit), as enacted by 83 Del. Laws c. 142 (HB 214, 2021) and a second official source. Verified June 2026 against primary sources.
To apply, contact your county assessor's office or the Delaware Department of Veterans Affairs. You will typically need your VA disability rating letter (and often your DD‑214) and proof that the home is your primary residence.
Real estate vs. personal property: this benefit applies to real-estate (home/homestead) property tax. Personal-property taxes — such as the annual tax some states levy on vehicles — are separate and generally still apply, even at a 100% rating, unless your state specifically exempts them.
VA Healthcare in Delaware
Delaware has approximately 1 VA medical center along with community-based outpatient clinics (CBOCs) throughout the state. Veterans enrolled in VA healthcare can receive care at any VA facility nationwide.
To find the nearest VA facility, visit VA.gov Facility Locator.