Delaware Military Retired Pay Income Tax Exclusion

Delaware Division of Revenue

$12,500 of military retired pay excluded from Delaware taxable income

You can leave $12,500 of your military retired pay out of your Delaware taxable income. Thrift Savings Plan distributions are not part of this exclusion: TSP does not withhold state or local tax, all TSP distributions are subject to Delaware tax, and early distributions may be taxed at a higher rate.

Check eligibility

How to apply

There is nothing to apply for. Claim the $12,500 exclusion on your Delaware personal income tax return using the Delaware Division of Revenue instructions for pension and retirement income.

What you'll need

Your Form 1099-R showing the retired pay, kept with your tax records.

Eligibility

You are a Delaware resident filing a Delaware income tax return
You receive military retired pay

Source

Official source

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