Bill introduced to exempt military pensions from state tax 

State food. Spiros Mantzavinos

DOVER – Laws introduced in the Delaware State Senate would exempt military pensions from state income tax exemption.

Senate Act 188 would gradually introduce the exemption starting at 25% of the individual’s military pension in 2022. The exemption would then be increased to 50% in 2023, 75% in 2024, and 100% of an individual’s military pension in 2025.

“Honoring and caring for our veterans is something we all agree on,” Senator Spiros Mantzavinos, D-Elsmere, said in a statement. “Americans of all political beliefs put this issue high on our national priorities. That deserves an answer, not just in Washington, but also at the state level. I am proud to lead this effort, and I look forward to this law being approved and passed to aid the brave men and women who have dutifully served our country. “

A 2019 poll conducted by Pew Research in 2019 found that 72% of adults, regardless of party, wanted increased spending on veteran benefits and services (the highest proportion of all 13 program areas surveyed).

Currently, Delaware is one of 16 states that partially tax military pensions. Under state tax laws, $ 2,000 of all retirement income is tax-exempt for those under the age of 60, increasing to $ 12,500 of all retirement income, including military pensions, for those aged 60 and over.

According to AARP, of the 41 states that have state income tax, 21 military pensions are fully tax exempt, including Pennsylvania and New Jersey.

According to SB 188, a military pension is defined as a pension received by an individual for serving in the United States Armed Forces, including the National Guard.

SB 188 was introduced Tuesday and assigned to the Senate Committee on Banking, Economics and Insurance.