DelawareDelaware would exempt some Guard and reserve income from income tax
Guard and reserve members would subtract qualifying pay and retirement benefits from income Delaware taxes, starting with tax years that begin in 2027.
What it does
Guard and reserve members would subtract pay and retirement benefits for specified training, drills, and field exercises when figuring Delaware income tax. This would apply to tax years beginning after December 31, 2026.
Argument forCovered members could owe less state income tax because eligible pay and retirement benefits would be subtracted from taxable income.
Argument againstDelaware could collect less income tax from covered members, leaving less money to pay for state services.
More detail
Members would subtract covered pay and retirement benefits from federal adjusted gross income when figuring Delaware income tax. It covers members of the National Guard or a reserve component of the U.S. uniformed services. The income must be for annual training, weekend drills, field exercises, or inactive duty training. The subtraction would apply to tax years beginning after December 31, 2026.
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Where it stands
- Introduced
- Passed House
- Passed Senate
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- May 21Assigned to Appropriations Committee in HouseLatest
- May 20Reported Out of Committee (Revenue & Finance) in House with 7 On Its MeritsMinor
- May 6Amendment HA 1 to HB 405 - Introduced and Placed With BillMinor
- May 5Introduced and Assigned to Revenue & Finance Committee in HouseIntroduced
Taxes & Budget