On Thursday, Senator Eric Buckson, representing Dover, introduced Senate Bill 201 (SB 201) in the Delaware General Assembly. The bill, which has garnered bipartisan support, proposes a significant increase in the state income tax pension exclusion for military pensioners. This legislative initiative aims to incrementally raise the exemption amount for military pensions from state income tax over a three-year period.
According to the provisions of SB 201, if the bill is enacted and signed into law, military pensioners of all ages would benefit from a $25,000 exemption from state income tax. This adjustment would be applicable for taxable years commencing on or after January 1, 2026.
Senator Buckson, in a statement, expressed his appreciation for the efforts of the General Assembly in enhancing military pension exemptions for veterans in the past. He specifically acknowledged the contributions of Senator Mantzavinos in the passage of Senate Bill 188 in 2022. Senate Bill 188 was a significant legislative step in the same direction, focusing on military pension exemptions.
Currently, out of the 50 states, 12 have laws in place that partially exempt military retirement pay from state income taxes. The proposed SB 201 seeks to expand Delaware’s commitment to this cause.
Senator Buckson emphasized the importance of supporting veterans, stating, “We should do all we can to help those who have given so much to this nation. Veterans deserve the absolute best and this is just one way we can give back and say thanks.”
Out of the 41 states in the United States that impose a state income tax, 27 fully exempt military retirement pay from these taxes.
Senator Buckson represents the 16th Senate District and ia a member of the Senate Veterans Affairs Committee.