On July 21, 2022, Governor Carney signed SB 188-1 into law before a roomful of National Guard who did not benefit from it. Amending Delaware Code, Title 30, to exclude an additional $10.5K of military pensions from taxable income was supposed to be “an incentive for military Retirees under age 60 to locate in Delaware.” But SB 188-1 ignored nearly three dozen other states where military pensions are 100% tax-free. SB 188-1 was viewed by many as being a “step in the right direction.” Senator Eric Buckson is taking another giant step on that journey with SB 201. Still, the proposed bill will not align Delaware with 33 other states that either do not tax military retired pay or do not have an income tax. Those states—not Delaware—will continue to reap the talent retiring from today’s Military.
