Delaware Veteran Financial Benefits
Sales Tax in Delaware:
Delaware does not impose any state or local sales tax.
Taxation on Military Income:
Service members who are residents of Delaware must pay state income tax on their active duty military earnings.
Tax on Military Retirement Pay:
Retired military personnel living in Delaware may deduct up to $12,500 of their military pension from their taxable income.
Thrift Savings Plan (TSP) and State Tax:
TSP does not automatically withhold local or state taxes; however, distributions are included on IRS Form 1099-R and may be subject to state taxes. Early withdrawals could lead to higher tax liabilities.
Military Disability Retirement Pay:
Compensation received due to a disability connected to active service in the U.S. Armed Forces—such as pensions or annuities for injury or illness—is generally exempt from Delaware income tax. Non-taxable benefits include:
- Disability compensation and pensions awarded to Veterans or their dependents
- Housing grants for wheelchair-accessible homes
- Vehicle grants for Veterans with lost limbs or vision
- Payments from dependent care support programs
VA Disability and DIC Benefits:
Dependency and Indemnity Compensation (DIC), a non-taxable monthly benefit, is awarded to qualified survivors of military personnel who died in service or from a service-connected cause.
Military Survivor Benefits Tax Exemption:
Delaware residents receiving benefits under SBP, RCSBP, or RSFPP can deduct up to $12,500 from their pension income if aged 60 or older. Those younger than 60 may exclude up to $2,000. Additionally, permanently disabled survivors with an earned income below $2,500 and an adjusted gross income under $10,000 may also qualify for this exclusion.
Delaware School Property Tax Credit for Disabled Veterans:
Delaware offers a full exemption on non-vocational school district property tax for qualified disabled Veterans on their primary residence.
Eligibility Criteria for the School Tax Credit:
Veterans must:
- Have a 100% permanent and total disability rating from the VA, or
- Be compensated at the 100% level due to individual unemployability
- Be a legal resident of Delaware for at least the last three consecutive years
Additional Tax Details:
- Statewide Sales Tax: None
- County Sales Tax: Not permitted
- Gasoline Tax: 23 cents per gallon, inclusive of all state, federal, and local taxes
Recreation
Delaware License Exemptions for Disabled Veterans:
Eligible disabled Veterans in Delaware may receive a waiver from the requirement to obtain hunting, trapping, and fishing licenses.
Resident Outdoor Privileges for Nonresident Military Personnel:
Active duty personnel stationed in Delaware, as well as Delaware National Guard members who are nonresidents, can purchase recreational licenses at the same rate as residents.
One-Time Outdoor License for Delaware Wartime Veterans:
Delaware residents who have served 90 days or more in either Operation Iraqi Freedom or Operation Enduring Freedom can apply for a one-time exemption from hunting and fishing license fees during the first year after their honorable discharge or release from active service.
Free Outdoor License for Hospitalized Military Personnel:
Service members undergoing treatment in a military hospital may qualify for a complimentary hunting, trapping, and fishing license. Applicants must provide a certification letter from their commanding officer detailing their medical status and assignment location.
Fishing License Exemption for VA Hospitalized Veterans:
Veterans currently admitted to U.S. Department of Veterans Affairs medical centers can fish in Delaware waters without needing a license. They must carry proof of their status as VA patients when fishing.
Delaware Military Discount for State Parks:
The Delaware Division of Parks and Recreation provides a 50% discount on annual park passes for resident active duty military personnel, Veterans, and military retirees.
Eligibility for the Delaware Military Pass:
To qualify, applicants must reside in Delaware and meet at least one of the following:
- Be actively serving in the U.S. Armed Forces or Delaware National Guard
- Be a Veteran with an honorable discharge
- Have completed 20+ years of honorable service in the U.S. Armed Forces
Free State Park Access for Recent Wartime Veterans:
Veterans who served in Operation Iraqi Freedom or Operation Enduring Freedom can receive a complimentary state park pass, valid for one year after their honorable separation from military service.
Discounted Vehicle Passes for Out-of-State Military Members:
Active duty personnel stationed in Delaware who retain a vehicle registration or driver’s license from another state may purchase an out-of-state Military Vehicle Pass at 50% off the civilian rate.
Additional Benefits for Delaware Veterans and Military Members
Delaware Supportive Services for Veteran Families (SSVF):
The SSVF program offers help to Veterans and their families in Delaware who are homeless or at risk of losing stable housing. Services include case management, help applying for VA and public benefits, financial aid for rent, security deposits, and utilities, as well as assistance enrolling in eligible support programs.
Education Programs
Delaware National Guard Education Assistance:
Members of the Delaware National Guard may be eligible for full tuition coverage at public colleges and universities in the state, or up to the average in-state tuition rate if attending a private institution in Delaware. This benefit applies to one certificate, associate, or bachelor’s degree. Reimbursement for master’s degree programs may be available once undergraduate tuition obligations are met, contingent upon available state funding.
Delaware College Tuition Program for Children of Deceased Veterans and POW/MIA Service Members:
Delaware offers full tuition and mandatory fee coverage at state-funded colleges and universities for children of Veterans and Service members who were either declared prisoners of war (POW) or listed as missing in action (MIA). Students may receive assistance for up to four years. If a student’s chosen academic program is not available at a public Delaware institution, they may attend a private college within the state or even an out-of-state public or private institution offering their required program.
High School Diplomas for Delaware Wartime Veterans:
Veterans from Delaware who left school to serve during wartime may qualify to receive a high school diploma post-service. This honorary diploma is granted to those who served during World War II, the Korean War, or the Vietnam War and were honorably discharged.
Eligibility Requirements for Wartime Diplomas:
To be eligible, Veterans must have received an honorable discharge and served during one of the following periods:
- World War II: December 7, 1941 – December 11, 1946, including occupation duties through September 8, 1951
- Korean War: June 27, 1950 – January 31, 1955
- Vietnam War: May 1, 1961 – April 30, 1975
Delaware’s Participation in the Military Interstate Children’s Compact (MIC3):
Delaware is a member of MIC3, which helps ease the educational transition for children in military Families. The compact aims to minimize educational disruptions caused by frequent relocations and deployments. It ensures:
- Smooth enrollment and record transfers between school districts
- Fair placement without penalty due to differing requirements
- Equal access to academic and extracurricular programs
- Support for timely graduation
- Standardized information sharing among member states, schools, and military households
- Enhanced cooperation between educational staff, parents, and students for successful outcomes
Delaware Purple Star School Designation for Military-Friendly Schools:
The Purple Star Program in Delaware acknowledges schools that go above and beyond to support students from military Families. To earn the Purple Star Award, a school must appoint a dedicated liaison who understands the distinct needs of military-connected students. This liaison also trains staff to be aware of the unique challenges these students face. Additionally, each school must maintain a dedicated web page with helpful resources tailored for military Families.
Housing Assistance: Below are the locations of Veterans Homes available.
Delaware State Veterans Home at Milford
Admission Requirements:
- Must have received an honorable discharge from military service
- Must have lived in Delaware for a minimum of three years
- Must have completed at least 180 days of active duty service
- National Guard or Reserve members must be eligible for retirement benefits starting at age 60
- Must demonstrate a need for skilled nursing facility level of care
Employment & Job Training Benefits for Connecticut Veterans
Paid Military Leave for Delaware State Employees:
Delaware’s Merit System employees who serve in the National Guard or Reserves are granted paid leave when they’re ordered to attend drills or specialized training that overlaps with work hours. Eligible personnel may receive up to 112.5 hours (based on a 37.5-hour work week) or 120 hours (for a 40-hour work week) annually, granted at the start of each calendar year.
If all military leave has been used, employees may opt for unpaid time off or use accrued annual leave. Part-time employees earn leave proportionally.
Those called to full-time active military service can take a leave of absence for the duration of duty, plus an additional 90 days after separation.
State Salary Gap Coverage During Active Duty:
If a state employee’s base military pay is less than their regular state salary during federal activation, Delaware will cover the pay difference. Employees must submit a request through their HR department within 90 days of returning from active duty.
Professional Licensing Support for Military Families:
The Delaware Division of Professional Regulation provides a range of licensing benefits to military members, Veterans, and their Spouses. Professional licenses for Service members remain valid throughout deployment, provided all standard requirements are upheld.
Provisional Licenses for Military Families:
Service members and their Spouses may apply for a temporary professional license that allows them to practice in Delaware for up to six months while their full application is under review.
Military Education, Training, and Experience (METE):
Licensing boards in Delaware consider relevant military training and experience when evaluating license applications. Applicants must show that their training aligns with the standards of the profession and meet these criteria:
- Be currently serving or have served in the U.S. Armed Forces (active or reserve), or be a retired Service member or Veteran.
- Submit the METE credit request along with their license application (or while it is pending).
- Demonstrate that licensure eligibility depends on credit for their METE.
Delaware State Hiring Preferences for Veterans:
Veterans, their Spouses, and certain family members may receive hiring advantages for state jobs. Qualified applicants receive additional points added to their exam scores if they meet all position requirements.
Five-Point Preference Eligibility:
- Honorably discharged Veterans from any component of the Armed Forces
- Guard or Reserve members with 20+ years of service
- Surviving Spouses of eligible deceased Veterans
- Spouses of Veterans declared MIA, POW, or held by foreign powers
- Spouses of Veterans with a service-connected disability
Ten-Point Preference Eligibility:
- Honorably discharged Veterans with a service-connected disability
- Reserve component Veterans with at least 20 years of service and a disability
Employees returning to state jobs after military service also receive up to three years of service credit for retirement purposes.
Federal Employment Preferences for Veterans
Veterans’ Hiring Preference in Federal Jobs:
Under federal law, Veterans are given priority in civil service hiring and job retention during workforce reductions. Depending on their service and disability status, applicants may receive either a 5- or 10-point boost on exams or rating systems.
5-Point Preference Applies to:
- Veterans who served during a war or specified timeframes (e.g., Gulf War, post-9/11)
- Veterans who served 180+ consecutive days (excluding training) within eligible periods
- Recipients of qualifying campaign or expedition medals
10-Point Preference Categories Include:
- CP: Veterans with a 10–29% service-connected disability
- CPS: Veterans with a 30%+ service-connected disability
- XP: Veterans with any service-connected disability or Purple Heart recipients
- Derived Preference (XP): Spouses, surviving Spouses, or mothers of eligible Veterans may qualify if the Veteran cannot work due to a service-connected condition
To qualify for these preferences, campaign medal recipients or Gulf War Veterans must have served for at least 24 continuous months unless separated for disability or hardship.
USERRA – Job Protections for Service Members
Employment Reinstatement Rights:
The Uniformed Services Employment and Reemployment Rights Act (USERRA) ensures that members of the military can return to their civilian jobs after serving in the military—up to five years of cumulative absence. Certain exceptions apply, such as long-term involuntary recalls or training requirements.
Accommodations and Protections for Disabled Veterans:
Employers must make reasonable accommodations for Veterans recovering from service-related injuries. Those injured may take up to two years post-service to return to work or seek reemployment.
Job Restoration and Benefits:
Returning Service members must be reinstated into the job and pay grade they would have held if they had not left for military service. They also retain all associated benefits and seniority. Training or retraining must be provided when necessary.
Healthcare and Pension Coverage:
USERRA allows Service members on duty for more than 30 days to continue employer-sponsored health plans for up to 24 months. For service under 31 days, health benefits continue uninterrupted. Pension contributions are also protected during military service.
USERRA Eligibility:
USERRA applies to National Guard and Reserve members, and all Veterans who leave civilian jobs for military service. The U.S. Department of Labor’s VETS program offers assistance for those filing claims.
Additional Military Benefits in Delaware
Delaware Military Pension Credit:
State employees hired before July 1, 1976, can earn up to five years of military service credit toward their state pension for active duty served. This benefit requires that they enter state employment within five years of completing service or within five years of finishing approved vocational or professional education following discharge. Training must be full-time, continuous, and result in a certificate, diploma, or degree.
Employees returning from active duty within 90 days are credited with full service time.
Optional Service Credit Purchase:
Eligible Veterans may also buy up to five years of pension credit for their military service, based on actuarial value. While this purchased time doesn’t count toward pension eligibility, it does increase benefit calculations.
National Guard Pay During State Active Duty:
When Delaware National Guard members are activated for state emergencies, they receive double the daily rate of equivalent federal active duty. For non-emergency training or activities, pay is equal to the standard federal rate.
During radiological emergency response, Guardsmen are paid twice their base pay, along with all applicable allowances.
Burials and Memorials
The National Cemetery Administration (NCA) honors qualified Veterans and their families by offering a dignified final resting place and a permanent memorial in recognition of the Veteran’s service to the United States.
Included burial benefits consist of a gravesite in any available national cemetery, grave opening and closing services, ongoing maintenance, a government-issued headstone or marker, a burial flag, and a Presidential Memorial Certificate—all provided at no charge to the family. In certain cases, Veterans may also qualify for a burial allowance. Cremated remains are treated with the same dignity and are either interred or inurned with full honors.
These burial privileges also apply to eligible spouses and dependents, allowing them to be laid to rest with the Veteran and ensuring perpetual upkeep of the burial site. The spouse’s or dependent’s name, along with birth and death dates, will be engraved on the Veteran’s headstone at no cost. Notably, eligible spouses and dependents can be buried even if they pass before the Veteran and do not have to be placed in the same cemetery.
National Cemeteries include:
Bear: New Castle County Veterans Cemetery
Millsboro: Sussex County Veterans Cemetery
Delaware VA Benefit Resources
Veterans in Delaware have access to a Regional VA Benefits Office and a VA Medical Center for support and healthcare services.
Delaware VA Regional Benefits Office
- Wilmington: Wilmington Regional Office
Delaware VA Medical Centers
- Wilmington: Wilmington VA Medical Center
If you’re a Veteran in Delaware applying for VA benefits for the first time, you’ll need to provide a copy of your DD Form 214 (military discharge papers). This document verifies your service details, including discharge status, full name, Social Security number, military branch, and service dates. Typically, an honorable or general discharge qualifies you for most VA benefits.
It’s highly recommended to store your military documents and medical records securely, such as in a fireproof safe, ensuring both you and your family can access them when needed. Proper storage is crucial to prevent damage, loss, or tampering.
Eligibility for the majority of VA benefits is determined by your discharge status from active duty under conditions other than dishonorable. Active duty refers to full-time service in the Army, Navy, Air Force, Marine Corps, Coast Guard, or as a commissioned officer in organizations like the Public Health Service, NOAA, or the Environmental Services Administration.
Veterans who received a dishonorable discharge via a general court-martial may be ineligible for VA benefits. However, certain benefits may still be available to incarcerated Veterans or those on parole. If you have multiple discharges with varying conditions, a VA regional office can help determine your eligibility.
Information is current as of October 2023.
Veteran Benefits in Delaware
Disabled Veterans in Delaware with a VA disability rating of 90% or lower may qualify for extra benefits. Vital Veterans Consultants offers a no-obligation, free consultation to help assess your eligibility. Let us evaluate your case to see if you’re entitled to more benefits.
