Bill > HB108

This bill modifies the personal income tax pension exclusion in Delaware, gradually increasing the maximum deduction from $12,500 to $25,000 for different age groups. Specifically, for taxable years beginning on or after January 1, 2025, individuals under age 60 can subtract the greater of $2,000 or up to $25,000 for a U.S. military pension, while those 60 and older can subtract up to $25,000 in pension income from employers, the U.S. government, the state of Delaware, or its subdivisions, or from eligible retirement income. Prior to 2025, the exclusion limits are lower, with persons under 60 able to subtract up to $2,000 or $12,500 for military pensions, and those 60 and older able to subtract up to $12,500 in pension income. This change represents a significant increase in the tax break for retirees and military pensioners, potentially providing more financial relief for older Delaware residents and veterans by reducing their taxable income.

Budget and Finance

https://legis.delaware.gov/BillDetail?LegislationId=142071