Delaware Veteran Benefits at a Glance
Delaware is home to roughly 67,000 veterans and operates its statewide programs through the Delaware Commission of Veterans Affairs. The state's veterans benefits landscape combines federal VA benefits (disability compensation, healthcare, GI Bill, VA home loans) with a layer of state-specific programs that can meaningfully change a veteran's cost of living — particularly through property tax relief and state income tax treatment of military retirement pay.
Delaware's small size and tax-friendly status (no sales tax, low property tax) make it a quiet but attractive option for military retirees. For service members deciding where to retire — or for veterans evaluating whether to relocate — the questions that matter most are usually: how will my retirement pay be taxed, what happens to my property tax bill if I'm 100% disabled, can my children use state tuition benefits, and how strong is the state veterans agency? This guide walks through each in turn.
Delaware Taxes for Veterans
Military Retirement Pay
Delaware allows military retirees to exclude up to $12,500 of pension income (age 60+) and offers additional exclusions for younger retirees as of recent legislation.
This treatment matters because military retirement pay typically ranges from $20,000 to $90,000+ per year depending on rank and years of service. In a state that fully exempts the income, a retiree drawing $50,000 of retired pay avoids the entire state income tax on that amount — which, in a 5% state, equals roughly $2,500/year in savings versus a fully-taxing state. Over 20 years of retirement, that one rule alone can be worth $50,000+.
VA Disability Compensation
Like all states, Delaware follows federal law and does not tax VA disability compensation. Whether you receive $171/month at 10% or roughly $4,044+/month at 100% with a qualifying dependent, that money is tax-free at both the federal and state level. See our VA disability calculator to estimate your monthly compensation.
Delaware Property Tax Benefits for Veterans
Headline: Delaware offers a disabled veterans school property tax credit for 100% service-connected disabled veterans.
Delaware's Disabled Veterans School Property Tax Credit provides a full credit against the school portion of property tax for veterans rated 100% service-connected disabled who have lived in Delaware for at least three years. Counties may also offer additional senior or disabled property tax credits.
For most homeowners, property tax is the second-largest annual housing expense after the mortgage itself. Delaware's partial exemption still produces meaningful savings, especially for veterans with higher disability ratings, and stacks with senior citizen and other available exemptions.
How to Apply
Property tax exemptions are administered at the county level by the county assessor (sometimes called tax assessor, appraisal district, or commissioner of revenue depending on the state). You'll typically need: a copy of your VA award letter showing disability percentage and effective date, proof of residency, proof of ownership (deed), and a completed state application form. Many counties accept applications year-round but only apply the exemption beginning in the next tax year.
Delaware Education Benefits for Veterans & Dependents
Delaware National Guard State Tuition Assistance
Up to 100% tuition assistance at Delaware state institutions for Guard members; education benefits also available for children of deceased Delaware veterans through the state's Educational Benefits for Children of Deceased Veterans program.
These state programs typically stack with — rather than replace — federal benefits like the Post-9/11 GI Bill. Many veterans use federal benefits first and state programs for any remaining costs, or use state benefits for dependents while preserving federal benefits for the service member. Application is usually handled directly through the school's veteran affairs office, which coordinates with the state agency.
In-State Tuition
Under federal law (the Veterans Access, Choice, and Accountability Act), public colleges in Delaware — like all states — must charge in-state tuition to veterans using GI Bill benefits regardless of state residency, provided the veteran enrolls within three years of discharge. This rule is especially valuable in higher-cost states like California, Maryland, and Washington.
Employment & Professional Licensing
State Veteran Hiring Preference
5/10-point veteran preference on state employment; Delaware JobLink connects veterans with priority listings.
Occupational Licensing
Military credit for licensing; spouse licensure portability.
Translating military experience into civilian credentials is one of the most common pain points in transition. Delaware's licensing rules can shave months — and thousands of dollars — off the path to civilian roles in healthcare, commercial driving, IT, and the trades. The Delaware Commission of Veterans Affairs can point you to industry-specific resources and to apprenticeship programs that count GI Bill benefits.
State Parks, Hunting & Fishing
Delaware State Parks
Free annual parks pass for 100% disabled Delaware veterans.
Hunting & Fishing Licenses
Resident disabled veterans qualify for free hunting and fishing licenses.
Vehicles, Plates & Driver Licenses
Disabled Veteran License Plates
Disabled veteran and Purple Heart plates issued at reduced cost; registration discounts for qualifying veterans.
Veteran Driver License Designation
Veteran designation on Delaware driver license available at no extra cost. The veteran designation is recognized as proof of service at most businesses offering veteran discounts (restaurants, retailers, hotels) and eliminates the need to carry your DD-214 for routine ID purposes.
State Veteran Homes & Cemeteries
Delaware operates 1 state veteran home, providing skilled nursing, domiciliary, and/or memory care to eligible veterans (and in some cases spouses and Gold Star parents). Admission requirements vary by facility but generally require honorable discharge, state residency, and clinical need for the level of care offered. The VA typically reimburses a portion of the per-diem cost, making state homes significantly more affordable than private long-term care.
The state also maintains 2 state veteran cemetery/cemeteries in addition to any federal VA national cemeteries within the state. Burial benefits for honorably discharged veterans typically include the gravesite, opening and closing, a government headstone or marker, a U.S. burial flag, and a Presidential Memorial Certificate.
Delaware Commission of Veterans Affairs
The Delaware Commission of Veterans Affairs is Delaware's official cabinet-level (or commission-level) state agency for veteran affairs. It administers state benefits, accredits and supervises County Veteran Service Officers (CVSOs), operates state veteran homes and cemeteries, and serves as the liaison between Delaware veterans and the federal VA. The agency does not charge fees for assistance — accredited VSO help is always free.
- Website: https://veteransaffairs.delaware.gov
- Phone: 302-739-2792
- Capital: Dover, DE
When in doubt, start with the state agency. They can refer you to a free accredited representative, walk you through state-specific applications (which are easy to miss when you only look at VA.gov), and help with emergency assistance programs available in many states for veterans experiencing financial crisis.
Is Delaware a Good State for Veterans?
Cost of Living
Delaware's overall cost of living is average relative to the U.S. average. Combined with the state's tax treatment of retirement pay and property tax rules, this drives the real after-tax purchasing power of a military retirement.
Climate
Mild mid-Atlantic climate with four moderate seasons.
Veteran Population & Community
With roughly 67,000 veterans, Delaware has a smaller veteran population, which often means tighter-knit communities but potentially longer drives to a full-service VA medical center.
Military Installations
Major active-duty installations in Delaware: Dover AFB. Proximity to an active-duty base usually means better commissary/exchange access, on-base healthcare options (Tricare), and a stronger pool of veteran-friendly employers and housing.
Frequently Asked Questions — Delaware Veterans Benefits
What benefits do veterans get in Delaware?
Delaware veterans receive a mix of property tax relief, education benefits, employment preference, free or discounted state park access, hunting and fishing license discounts, and access to 1 state veteran home and 2 state veterans cemetery/cemeteries. Delaware's small size and tax-friendly status (no sales tax, low property tax) make it a quiet but attractive option for military retirees.
Do disabled veterans pay property taxes in Delaware?
Delaware offers a partial property tax exemption for disabled veterans rather than a full exemption. Delaware's Disabled Veterans School Property Tax Credit provides a full credit against the school portion of property tax for veterans rated 100% service-connected disabled who have lived in Delaware for at least three years. Counties may also offer additional senior or disabled property tax credits.
Does Delaware tax military retirement pay?
Delaware allows military retirees to exclude up to $12,500 of pension income (age 60+) and offers additional exclusions for younger retirees as of recent legislation.
Does Delaware offer free college for veterans or dependents?
Delaware's primary education benefit is the Delaware National Guard State Tuition Assistance. Up to 100% tuition assistance at Delaware state institutions for Guard members; education benefits also available for children of deceased Delaware veterans through the state's Educational Benefits for Children of Deceased Veterans program.
What is the official state veterans agency in Delaware?
The Delaware Commission of Veterans Affairs (302-739-2792) is the official state agency. Visit https://veteransaffairs.delaware.gov for the most current programs, accredited claim assistance, and county-level Veteran Service Officer contacts.
Is Delaware a good state for military retirees?
Delaware's small size and tax-friendly status (no sales tax, low property tax) make it a quiet but attractive option for military retirees. Cost of living is average, and mild mid-atlantic climate with four moderate seasons.
Disclaimer: State veterans benefits change frequently as legislatures pass new laws. Always verify current eligibility, dollar amounts, and application procedures with the Delaware Commission of Veterans Affairs or an accredited Veterans Service Officer before relying on any information on this page. This site provides educational information, not legal or tax advice.