Of the 41 states with a state income tax, 27 states fully exempt military retirement pay from state income taxes and 12 states partially exempt military retirement pay.
In 2022, Delaware increased the pension exclusion for military pensioners under 60 to $12,500. This Act phases in, over 3 years, an increased exemption for military pensions from state income taxation, regardless of age, so that in taxable years beginning on or after January 1, 2026, the exemption will be $25,000 for all military pensioners.

Statutes affected:
Original Text: 30.1106