Beyond your federal VA disability compensation, Delaware offers its own benefits for veterans — property tax, income tax, education, employment, vehicle, recreation, veterans home, financial. Here's what Delaware veterans can claim, who qualifies, and how to apply.
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Full exemption from county property taxes (and local school taxes) for a disabled veteran with a 100% VA-rated service-connected permanent & total disability, or one receiving 100% compensation due to individual unemployability. Applies to the dwelling and surrounding land occupied as the owner's principal place of residence.
Credit against 100% of non-vocational school district property tax on the veteran's principal residence. Requires 100% VA service-connected permanent & total disability rating OR 100% compensation due to individual unemployability (IU), plus 3 years legal domicile in Delaware and all prior property taxes paid. Cannot be combined with the Senior School Property Tax Credit. Apply through your county; deadline April 30 for the upcoming tax year; no annual reapplication but must report rating changes within 60 days.
Delaware allows a military-pension subtraction from federal AGI, available regardless of age, phasing up over recent years: $20,000 for tax year 2025 and $25,000 for tax year 2026 and beyond. This is in addition to (not stacked beyond statutory caps with) the general pension/retirement exclusion of $12,500 for taxpayers 60+ or $2,000 for those under 60. Military retirement is therefore PARTIALLY, not fully, exempt.
VA disability compensation is excluded from federal gross income and therefore never enters Delaware's federal-AGI-based taxable income; Delaware does not tax it. Social Security and Railroad Retirement are also not taxable in Delaware. No Delaware page states the VA-comp treatment verbatim, but it follows directly from the FAGI starting point.
Active members of a federally recognized Delaware National Guard unit who meet membership requirements receive funding support for post-secondary education tuition and fees.
Full tuition and fees at any Delaware public college for children (ages 16-24) of veterans who died of a service-connected cause, or who are POW/MIA. Requires three years of Delaware residency and enrollment beyond high school.
Employers hiring qualified veterans (e.g., who served in hostile/combat zones such as Iraq/Afghanistan) may claim a tax credit of 10% of the veteran's wages, up to $1,500 per year, for up to three years.
Veterans receive preference points in state hiring: 10 points for disabled veterans and 5 points for other eligible veterans. Preference is transferable to unmarried spouses/widows in defined circumstances.
A motor vehicle owned by a disabled veteran who is eligible for VA 'adaptive equipment' benefits is exempt from registration fees, limited to one automobile per eligible veteran at a time. DMV also issues special veteran plates (Disabled Veteran, Purple Heart, Former POW) typically for a $10 fee with documentation.
Veterans with at least a 60% service-connected disability rating qualify for a no-fee veteran hunting/fishing/trapping license exemption via DNREC Division of Fish & Wildlife. Active-duty stationed in Delaware get resident rates, and OIF/OEF veterans (90+ days) get a one-time 12-month exemption after honorable discharge.
Disabled veterans receive a 50% discount on annual state park vehicle entrance fees.
150-bed skilled nursing and dementia care facility in Milford. Eligibility: honorable discharge from active service (or Guard/Reserve eligible for age-60 retirement pay or 180+ days active duty), Delaware residency for 1 year prior to application, and meeting skilled-nursing level-of-care requirements. Daily rate $320/day (as of May 1, 2023); billing is waived for veterans 70%+ VA-disabled and there is no fee for 100% VA-disabled veterans.
A wartime-disabled veteran who is paraplegic and fully disabled as a direct result of service receives a state pension of $3,000 per year, payable in equal monthly installments, upon providing evidence to the Pension Office.
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Delaware offers veteran benefits across property tax, income tax, education, employment, vehicle, recreation, veterans home, financial. Highlights include County Property Tax Exemption (100% P&T disabled veterans), Disabled Veterans School Property Tax Credit, Military Retirement Pension Exclusion. Eligibility varies — some benefits require a VA disability rating, 100% P&T status, or combat service.
Full exemption from county property taxes (and local school taxes) for a disabled veteran with a 100% VA-rated service-connected permanent & total disability, or one receiving 100% compensation due to individual unemployability. Applies to the dwelling and surrounding land occupied as the owner's pr
Delaware allows a military-pension subtraction from federal AGI, available regardless of age, phasing up over recent years: $20,000 for tax year 2025 and $25,000 for tax year 2026 and beyond. This is in addition to (not stacked beyond statutory caps with) the general pension/retirement exclusion of
Many state benefits are tied to your VA disability rating — the higher your rating, the more you may qualify for. Use the free VA Ready calculator to confirm your combined rating, then check which state benefits you've earned.