The retirement income including the pension is taxable in Delaware and taxes are similar to the federal retirement taxes. Social Security and Railroad Retirement benefits are not taxable. Seniors taxpayers (60 years of age or older) are entitled to a pension exclusion of up to $12,500 or the amount of the pension and eligible retirement income (whichever is less). If you are under age 60 and receiving a pension, the exclusion amount is limited to $2,000. Retirement Taxes
The retirement income including the pension is taxable in Delaware and taxes are similar to the federal retirement taxes. Social Security and Railroad Retirement benefits are not taxable. Seniors taxpayers (60 years of age or older) are entitled to a pension exclusion of up to $12,500 or the amount of the pension and eligible retirement income (whichever is less). If you are under age 60 and receiving a pension, the exclusion amount is limited to $2,000.
State Tax Exemptions
$2,000/$12,500
$2,000/$12,500
$2,000/$12,500
Military Pension: $2,000/$12,500
Social Security: Yes
Pension Age Restriction: Yes. The retirement income exemption depends on the retirement age.
Pension Income Restriction: No