Tax Exemptions for Those Who Work Hard in Service to Others

May 13, 2026

State Senator Richard Bryant

As the 153rd General Assembly comes to a close on June 30, a number of bills to reduce the tax burden on hard-working Delawareans and those who serve us in the military, are under consideration. 

Following are summaries of the bills that will be heard in committee over the next few weeks:

Armed Forces Tax Act 

This Act provides an exemption from state income tax for the amount of income or compensation received for federally required annual training, drills and field exercises, or inactive duty training by an individual who is a member of the National Guard or a reserve component of the U.S. armed forces. The bill’s provision applies to taxable years beginning after December 31, 2026.

No Tax on Tips Act

State Representative Jeff Hilovsky, Senator Eric Buckson and I have introduced the Tipped Worker Tax Relief Act of 2026.

This Act provides targeted state income tax relief to resident and nonresident tipped workers in Delaware. It creates a deduction of up to $15,000 on qualified tips and converts it to a refundable credit for low-income resident earners. 

The program sunsets in 2029 unless renewed after review. 

This legislation promotes fairness, supports workforce retention in small business community, and addresses affordability challenges without new taxes or mandates on employers.

No Tax on Overtime Act

I introduced this bill in the Senate and state Rep. Bryan Shupe introduced a similar bill in the House.

My bill creates a new tax credit in the amount of $15,000 for Delaware residents, applicable to overtime paid under the Federal Fair Labor Standards Act for compensation paid to workers that work over 40 hours in a week. 

The credit phases out for resident individuals earning $125,000 and joint filers earning $250,000, and is fully phased out for individuals earning $150,000 and joint filers earning $300,000. 

Shupe’s bill exempts from State income tax any income received by a full-time hourly wage-paid employee for overtime work performed in excess of 40 hours in a week. 

This exemption applies for taxable years beginning on January 1, 2026, and ending before January 1, 2028. 

Shupe’s Act also requires each employer to provide information to the Division of Revenue about the total amount of overtime provided to full-time hourly wage-paid employees and the number of employees to whom overtime was paid in taxable years beginning January 1, 2025.  

Property Tax Act

This Act increases the property tax exemption to $1,000 annually.

My purpose in introducing this Act is to help elderly people afford to stay in their homes after their spouse dies.

Often the surviving spouse is faced with reduced income. 

With all the other concerns associated with losing a spouse, the threat of losing one’s home should not be at the top of the list.

What are your thoughts?

What are your thoughts about these bills?

Write to me with your comments on these bills or suggestions for other legislation. Send comments to bryant.richardson@delaware.gov.

Citizen’s Guide

There’s a video of our Congressional representative, Sarah McBride, reading a book to kindergarteners about choosing one’s gender. 

Is this what we want our lone U.S. Representative spending time doing?

Many children at that age need help tying their shoes. 

They should not be exposed to this dangerous ideology. 

This and other topics are found in the Citizen’s Guide to Delaware Public Policy.

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Click HERE: To read and download your copy of Senator Richardson's Citizen's Guide to Delaware Public Policy