Sen. Buckson Introduces Legislation to Increase Military Pension Tax Exemption

January 9, 2026

Delaware State Senate - Republican Caucus

DOVER, DE — Senator Eric Buckson (R - South Dover) has introduced Senate Bill 219 (SB 219), bipartisan legislation that would significantly increase Delaware’s exclusion of military retirement pay from state income taxes, providing meaningful tax relief to veterans who have served our nation.

SB 219 phases in an increased exemption for military pensions over several years, ultimately raising the exclusion to $25,000 for all military retirees, regardless of age, beginning in tax year 2029. Currently, Delaware allows a maximum military pension exclusion of $12,500.

“Delaware owes a debt of gratitude to the men and women who served our nation, and this bill is a practical way to honor that service,” said Senator Buckson. “Military retirees earned these benefits through years of sacrifice, and they should not be penalized for choosing to live in Delaware after their service.”

Under the proposal, the military pension exclusion would increase incrementally starting in 2027, guaranteeing a responsible, phased approach while moving Delaware closer to parity with other states. Of the 41 states that have a state income tax, 27 fully exempt military retirement pay and 12 others offer partial exemptions.

Senator Buckson previously introduced similar legislation in 2024, continuing a multi-year effort to make Delaware more welcoming and competitive for veterans and military families.

“This is also about keeping experienced, highly skilled veterans here in our communities,” Senator Buckson added. “When veterans retire from military service, many are still in the prime of their working years. A more competitive tax structure helps Delaware attract and retain those leaders, workers, and mentors.”

SB 219 builds on prior legislative actions taken in 2022 and 2024 that expanded Delaware’s military pension exclusion and clarified eligibility to include service in the Space Force, Coast Guard, National Guard, and the commissioned corps of the National Oceanic and Atmospheric Administration and the U.S. Public Health Service.

SB 219 has been assigned to the Senate Executive Committee and is expected to receive committee consideration in the coming weeks. 

The General Assembly will reconvene in regular session next Tuesday, January 13, 2026.