Delaware Veteran Tax Exemptions 2026

Delaware keeps things straightforward for disabled veterans: the state does not tax your VA disability compensation, and depending on your rating, it can cover a significant share of your property tax through a credit that scales up to a full offset. Both benefits are available to veterans who own their primary home in the state. Here is what you need to know to claim them.

Does Delaware tax VA disability income?

No. Delaware does not tax VA disability compensation. The state treats it the same way the federal government does, which means it is left off your taxable income entirely. Whether you are rated 10 percent or 100 percent, your VA disability pay is not taxed by Delaware.

Delaware property tax exemption for disabled veterans

Property tax credit up to 100%. Disabled veterans tax credit varies by rating and county.

The property tax credit can reach a complete offset at the top rating, meaning the state effectively pays your property tax for you, a benefit worth locking in as soon as you qualify.

What rating do you need in Delaware?

The size of your break depends on your combined VA rating. In Delaware, the full break is reserved for veterans at the top rating, usually 100 percent or 100 percent Permanent and Total. Lower ratings may still qualify for a smaller break, so it is worth checking with your county even if you are not yet at 100 percent. Not sure what your combined rating works out to? Run it through our VA disability calculator first, and if you are aiming for the top tier, check whether you qualify for Permanent and Total status.

How to claim your Delaware exemption

1. Confirm your current combined rating and whether it is Permanent and Total. Your VA award letter shows both.
2. Gather your DD-214 and your VA disability award letter. Most Delaware offices ask for both.
3. Contact your county tax assessor for the property tax exemption, and the your state tax agency or Department of Veterans Affairs for the income side.
4. File before your county deadline. Many counties require you to apply once, then renew only if your rating changes.

Always confirm the current figures and deadlines with your county assessor and the Delaware Department of Veterans Affairs before you rely on them. Rules and dollar amounts change year to year.