Delaware Veteran Benefits 2026: Property Tax Exemptions and Military Retired Pay Tax

The state benefits Delaware gives veterans and their surviving spouses: property tax exemptions, how the state taxes military retired pay, and other benefits, each with who qualifies, the amount, how to apply and the official source.

Delaware's main property tax benefit for veterans is a credit for 100% of school district property tax on the home. It goes to veterans paid at the 100% disability rate, either through a 100% rating or through individual unemployability (IU) for a permanent and total disability, and it carries over to an unremarried surviving spouse. It does not cover county or municipal property tax. For tax year 2026, U.S. military retired pay is partly excluded from state income tax: up to $12,500 at any age. That limit rises to $15,000 in 2027, $20,000 in 2028 and $25,000 from 2029. Other state benefits include free vehicle registration for certain disabled veterans, free hunting, trapping and fishing licenses at a 60%+ rating, tuition and fees for children of service members killed on duty, POWs or MIAs, and up to 10 points of preference in state civil-service exams. (sources)

Official sources Checked against official sources on November 4, 2026. This page lists only benefits confirmed on an official state or federal page; counties and cities may offer more.

Property tax exemptions
Military retired pay tax
Other veteran benefits
Common questions

Property tax exemptions for veterans in Delaware

Delaware property tax benefits for veterans and surviving spouses (checked November 4, 2026)
Benefit	Who qualifies	Amount	How to apply	Source
Disabled Veterans School Property Tax Credit	Veteran who receives 100% VA disability compensation, either through a 100% rating or through individual unemployability (IU) for a service-connected, permanent and total disability. Must have been domiciled in Delaware for at least 3 consecutive years and must own and live in the home as a primary residence. An unremarried surviving spouse keeps the credit if the deceased veteran was claiming it, the spouse was a titled owner before the death, and the spouse owns and lives in the home. The local school board must have authorized the credit. You cannot claim it together with the Senior School Property Tax Credit, and a property gets only one credit per year. No income limit.	Credit for the full school district property tax under 14 Del. C. ch. 19 on the home. County and municipal property taxes are not covered.	Apply to the county where the home is located. The application must arrive by April 30 before the tax year begins. The Secretary of Finance can waive the deadline for financially disabled individuals.	Delaware Code Title 14, Ch. 19, Subch. I, § 1917(d): Disabled veterans school tax credit

Is military retired pay taxed in Delaware?

Delaware state income tax on military retired pay (checked November 4, 2026)
Treatment	Amount or limit	Source
Partial exclusion (pension subtraction modification, 30 Del. C. § 1106(b)(3)). Under age 60: up to $12,500 of U.S. military pension for tax years 2022-2026. Age 60 or older: up to $12,500 combined from pensions and eligible retirement income, with a 3-year Delaware domicile requirement (5 years if domiciled on or after Jan 1, 2027). On a joint return each spouse with a military pension gets their own limit. 'Military pension' includes the Army, Navy, Air Force, Marine Corps, Space Force, Coast Guard, NOAA and PHS commissioned corps, and the National Guard.	Tax year 2026: $12,500 per person. The military pension limit rises to $15,000 in 2027, $20,000 in 2028 and $25,000 in 2029 and later. From 2027, filers aged 60+ get the greater of the general $12,500 limit or the military limit.	delcode.delaware.gov

For the dollars this treatment adds to (or saves on) a retiree’s state tax in 2026, see the military retirement tax by state study; for the pension itself, the military retirement pay calculator.

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Other Delaware veteran benefits

Vehicles and license plates

Delaware: vehicles and license plates for veterans
Benefit	Who qualifies	Amount	Source
No registration fee and free distinctive plates (21 Del. C. § 2164)	Veteran with a disability who has ever been eligible for the VA automobile/adaptive-equipment benefit (38 U.S.C. § 1901 et seq.)	Registration fee waived for 1 automobile at a time. Distinctive number plates issued free.	delcode.delaware.gov
Special disabled veteran license plate (21 Del. C. § 2138)	Veteran with a VA-determined service-connected disability, or a veteran disabled in a war or qualifying conflict and certified by DoD or the VA. Applies to a passenger vehicle or a truck of 3/4 ton or less. A surviving spouse can transfer the plate.	Special plate with no fee beyond the annual registration fee. A wheelchair-symbol version is available if the veteran also qualifies for a disability plate.	delcode.delaware.gov

Hunting, fishing and other licenses

Delaware: hunting, fishing and other licenses for veterans
Benefit	Who qualifies	Amount	Source
Free hunting, trapping and fishing license exemption (7 Del. C. § 502(h))	Honorably discharged veteran with a VA-certified service-connected disability of at least 60%	Free license exemption to hunt, trap and fish	delcode.delaware.gov

Education

Delaware: education for veterans
Benefit	Who qualifies	Amount	Source
Educational Benefits for Children of Deceased Veterans and Others (14 Del. C. §§ 3451-3455)	Child aged 16-24 of a service member who was killed on active duty or died of service-connected causes, was a POW, or is officially MIA. The child must be a Delaware resident for at least 3 years. The parent must have been a Delaware resident at the time of death, or must be a resident if POW/MIA.	Full tuition and fees for up to 4 years at a state-supported institution, or as the statute provides when the major isn't offered there. The benefit is reduced to average Delaware tuition if the student chooses a school out of the statutory order.	delcode.delaware.gov

Employment

Delaware: employment for veterans
Benefit	Who qualifies	Amount	Source
Veterans' preference in state classified service (29 Del. C. § 5935)	Honorably separated veterans of the U.S. armed forces, plus qualifying active and honorably discharged members. Applies to original entrance only, not promotion or reduction in force.	Points added to earned exam ratings: up to 10 for disabled veterans and up to 5 for other veterans and qualifying members	delcode.delaware.gov

Common questions

Does Delaware have a property tax exemption for disabled veterans?

Yes: Disabled Veterans School Property Tax Credit. Who qualifies: Veteran who receives 100% VA disability compensation, either through a 100% rating or through individual unemployability (IU) for a service-connected, permanent and total disability. Must have been domiciled in Delaware for at least 3 consecutive years and must own and live in the home as a primary residence. An unremarried surviving spouse keeps the credit if the deceased veteran was claiming it, the spouse was a titled owner before the death, and the spouse owns and lives in the home. The local school board must have authorized the credit. You cannot claim it together with the Senior School Property Tax Credit, and a property gets only one credit per year. No income limit.. Amount: Credit for the full school district property tax under 14 Del. C. ch. 19 on the home. County and municipal property taxes are not covered. (Delaware Code Title 14, Ch. 19, Subch. I, § 1917(d): Disabled veterans school tax credit).

How do I apply for the Delaware veteran property tax exemption?

Apply to the county where the home is located. The application must arrive by April 30 before the tax year begins. The Secretary of Finance can waive the deadline for financially disabled individuals. (Delaware Code Title 14, Ch. 19, Subch. I, § 1917(d): Disabled veterans school tax credit).

Does Delaware tax military retirement pay?

Partial exclusion (pension subtraction modification, 30 Del. C. § 1106(b)(3)). Under age 60: up to $12,500 of U.S. military pension for tax years 2022-2026. Age 60 or older: up to $12,500 combined from pensions and eligible retirement income, with a 3-year Delaware domicile requirement (5 years if domiciled on or after Jan 1, 2027). On a joint return each spouse with a military pension gets their own limit. 'Military pension' includes the Army, Navy, Air Force, Marine Corps, Space Force, Coast Guard, NOAA and PHS commissioned corps, and the National Guard. Amount or limit: Tax year 2026: $12,500 per person. The military pension limit rises to $15,000 in 2027, $20,000 in 2028 and $25,000 in 2029 and later. From 2027, filers aged 60+ get the greater of the general $12,500 limit or the military limit. (delcode.delaware.gov).

What other benefits do veterans get in Delaware?

No registration fee and free distinctive plates (21 Del. C. § 2164) (delcode.delaware.gov); Special disabled veteran license plate (21 Del. C. § 2138) (delcode.delaware.gov); Free hunting, trapping and fishing license exemption (7 Del. C. § 502(h)) (delcode.delaware.gov); Educational Benefits for Children of Deceased Veterans and Others (14 Del. C. §§ 3451-3455) (delcode.delaware.gov); Veterans' preference in state classified service (29 Del. C. § 5935) (delcode.delaware.gov). Who qualifies and the amounts are in the tables above.

Sources

Every row above is copied from the official page linked beside it. Benefits change with new laws and local decisions, so confirm the amount and the deadline with the office that runs the program before you apply. QuantCalc is calculation software, not legal, tax or benefits advice. Last updated November 4, 2026.

Delaware senior property tax relief → Delaware state income tax for retirees → Veteran benefits in every state → Military retirement tax by state 2026 → Military retirement pay calculator → 2026 VA disability rates → Military retiree and VA COLA 2027 → VA loan limits 2026 →