DE · Tax Year 2026
How Delaware taxes Social Security, pensions, 401(k)/IRA withdrawals, and military retirement pay in 2026.
$2,000 eligible pension income under age 60; $12,500 eligible retirement/investment income age 60+; military up to $12,500
Broader $12,500 exclusion at age 60+
Additional Notes
Military and ordinary retirement exclusions cannot be applied twice to the same income
Does Delaware tax Social Security benefits?
No. Delaware does not tax Social Security retirement benefits.
Does Delaware tax pension income?
Partially. Delaware provides exemptions for certain types of pension income — often public, government, or military pensions — while private pensions may be partially or fully taxable. See eligibility details above.
Does Delaware tax 401(k) and IRA withdrawals?
Yes, traditional 401(k) and IRA withdrawals are generally taxable in Delaware. However, exclusions or credits may apply depending on your age and income — review the details above.
Is Delaware a tax-friendly state for retirees?
It depends on your income mix. Delaware offers some retirement income relief, but the rules vary by income type and eligibility. Review the details above and consider consulting a tax professional for your specific situation.
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Data Source
Official Delaware state tax authority guidance. Tax year 2026. Some annually indexed thresholds may not yet be finalized — confirm with the state revenue department before filing.
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Data reflects tax year 2026 rules sourced from official Delaware state tax authorities. This page is for informational purposes only — always confirm current rules with the state revenue department or a qualified tax professional before making financial or relocation decisions.