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Delaware VA Disability Benefits & Resources for Veterans

By Kory Kehl Last updated: Editorial policy

The Delaware Office of Veterans Services (OVS) in Dover runs the state’s veteran programs, including the Delaware Veterans Home in Milford and the state veterans cemeteries in Bear and Millsboro. Delaware has no general property tax exemption for disabled veterans. Instead it offers a school tax credit that fully covers the school district property tax for veterans paid at the 100% P&T rate, and a military pension exclusion that the legislature voted in August 2026 to double by 2029.

State benefit details verified against official state sources on September 27, 2026.

Key benefits at a glance

BenefitWho qualifiesAmount / limitOfficial source
Disabled Veterans School Tax CreditPaid at the 100% rate for P&T or IU; 3 years’ domicile100% of non-vocational school district tax on primary residenceDE Dept. of Finance
Military pension exclusionMilitary retirees (domicile rule at 60+)$12,500 through 2026; $15,000 (2027), $20,000 (2028), $25,000 (2029+)DE General Assembly
Hunting, trapping, and fishing licenseService-connected rating of 60% or moreNo feeDNREC
Disabled veteran plateVeterans with a VA service-connected disabilityNo fee beyond the annual registrationDE Code
Registration fee exemptionDisabled veterans eligible for VA adaptive equipmentOne vehicleDE OVS
State park annual passHonorably discharged veterans with a DE-registered vehicle50% off the annual vehicle entrance feeDE OVS
Paraplegic veterans pensionWartime veterans who are paraplegic from service$3,000 per yearDE OVS
State hiring preferenceVeterans; unmarried surviving spouses10 points (disabled) or 5 pointsDE OVS
State veterans homeEligible veterans needing skilled nursingDelaware Veterans Home, Milford (150 beds)DE OVS

Property tax exemption

Delaware’s main property tax benefit for disabled veterans is the Disabled Veterans School Tax Credit, created by House Bill 214 in 2021 and available since 2022. The Department of Finance lists these requirements:

  • The VA pays you 100% disability compensation for a service-connected permanent and total disability, either through a 100% schedular rating or individual unemployability.
  • You have held legal domicile in Delaware for the past 3 years.
  • The credit covers 100% of the non-vocational school district property tax on your primary residence only.
  • You must have paid your property tax bill in full by the end of each tax year to qualify the following year.
  • You cannot claim both this credit and the Senior School Property Tax Credit.

Applications are due April 30 for the coming tax year. Bring a driver’s license or state ID, your VA disability documentation, and your Social Security card. County contacts listed by Finance: New Castle (302) 395-5520, Kent (302) 744-2401, Sussex (302) 855-7871.

State income tax

Delaware subtracts part of a U.S. military pension from taxable income under 30 Del. C. 1106(b)(3). Through the 2026 tax year the exclusion is up to $12,500 at any age. Filers under 60 get the larger of that amount or the $2,000 general pension exclusion, and filers 60 and older share the $12,500 cap with other pensions and eligible retirement income.

Senate Bill 219, signed August 17, 2026, raises the military pension limit in steps:

  • 2027 tax year: up to $15,000
  • 2028 tax year: up to $20,000
  • 2029 and later: up to $25,000

SB 219 also adds a domicile test for filers 60 and older. You need 3 years of Delaware domicile if you became a resident before January 1, 2027, or 5 years if you arrive on or after that date. On a joint return, each spouse with a military pension gets their own limit. VA disability compensation is not included in federal adjusted gross income, so Delaware does not tax it.

Vehicle registration and license plates

  • Disabled veteran plate (21 Del. C. 2138): You can get this plate for a car or a truck of 3/4-ton or less if the VA certifies that you have a service-connected disability, or if the Department of Defense certifies that you were disabled in a qualifying conflict. There is no fee beyond the annual registration. If the veteran dies, the surviving spouse can move the plate to their own vehicle. Veterans who also qualify for disability parking can get a combined plate that works as a disability plate.
  • Registration fee exemption: OVS says disabled veterans who are eligible for VA adaptive equipment do not pay registration fees on one vehicle.
  • State parks: Veterans with a Delaware-registered vehicle get 50% off the annual state park vehicle entrance fee.

Hunting and fishing licenses

DNREC’s Division of Fish and Wildlife issues a no-fee hunting, trapping, and fishing license to veterans with a service-connected disability rating of 60% or higher. Mail the Veterans with Disabilities Exempt Application directly to the Division and allow up to 4 weeks. Delaware residents who served 90 or more days in Operation Iraqi Freedom or Enduring Freedom can get a one-time license exemption for the first 12 months after an honorable discharge. Active-duty members stationed in Delaware pay resident prices.

Education benefits

OVS lists a state education benefit for children of service members who died in service, were held as prisoners of war, or were declared missing in action. Applicants must be 16 to 24 years old, have lived in Delaware for at least 3 years before applying, and attend school beyond high school. Active members of the Delaware National Guard can also get help with tuition and fees for college.

State veterans homes

The Delaware Veterans Home in Milford is a 150-bed long-term care facility. It provides skilled nursing and has a special needs unit for dementia, including Alzheimer’s disease. According to OVS, applicants need a medically determined need for skilled nursing, honorable active-duty service or qualifying Guard or Reserve service, and generally at least 1 year of Delaware residency. Wartime service is not required, and spouses can be admitted under certain conditions.

Employment preference

Veterans applying for Delaware state jobs receive 10 preference points if disabled and 5 points otherwise. Unmarried widows, widowers, and spouses of eligible veterans can claim the points in some cases. Delaware employers who hire a qualified veteran who served in a hostile area can claim the Veterans Opportunity Credit: 10% of the veteran’s wages, up to $1,500 a year, for the hiring year and the next two tax years.

How to apply for Delaware veteran benefits

  1. Download your VA benefit summary letter from VA.gov. It shows your combined rating, P&T status, and whether you are paid at the 100% rate through individual unemployability.
  2. Apply for the Disabled Veterans School Tax Credit through the Department of Finance by April 30, or call your county office.
  3. Claim the military pension exclusion on your Delaware resident income tax return. Before claiming the higher 2027 to 2029 limits, check the domicile rules if you are 60 or older.
  4. For a no-fee hunting, trapping, and fishing license, send the DNREC Veterans with Disabilities Exempt Application with your VA rating letter.
  5. For a disabled veteran plate, apply at the Division of Motor Vehicles with your VA certification.
  6. For the Veterans Home, the paraplegic pension, or free benefits help, contact the Office of Veterans Services at (302) 739-2792.

VA offices and medical centers in Delaware

The Wilmington VA Regional Benefit Office is at 1601 Kirkwood Hwy, Wilmington, DE 19805. It is open Monday through Friday, 8:30 a.m. to 4:00 p.m., and appointments can be booked through VA’s VERA system.

VA medical center in Delaware:

  • Wilmington VA Medical Center, Wilmington

The Wilmington system also runs the Kent County VA Clinic in Dover and the Sussex County VA Clinic in Georgetown. You can find all outpatient clinics with the VA facility locator.

Filing a federal VA disability claim from Delaware

A VA disability claim works the same way in Delaware as in every other state. See how to file, check claim status, and look up the 2026 compensation rates. Veteran Service Officers at the Delaware Office of Veterans Services help with claims for free. If you are in crisis, call the Veterans Crisis Line: dial 988, then press 1.

Frequently Asked Questions

Do disabled veterans get a property tax break in Delaware?

Yes, through the Disabled Veterans School Tax Credit. It covers 100% of the non-vocational school district property tax on your primary residence. You qualify if the VA pays you at the 100% rate for a service-connected permanent and total disability, either through a 100% rating or individual unemployability, and you have been domiciled in Delaware for the past 3 years. Apply by April 30. You cannot combine it with the Senior School Property Tax Credit.

How much military retirement pay is exempt from Delaware income tax?

Through the 2026 tax year, up to $12,500 of a U.S. military pension is excluded at any age. Senate Bill 219, signed August 17, 2026, raises the military pension exclusion to $15,000 for 2027, $20,000 for 2028, and $25,000 starting in 2029. Filers 60 and older must meet a Delaware domicile requirement. VA disability compensation is not taxed because it is excluded from federal adjusted gross income.

Can disabled veterans hunt and fish for free in Delaware?

Yes. Veterans with a service-connected disability rating of at least 60% can get a no-fee hunting, trapping, and fishing license from DNREC's Division of Fish and Wildlife. Submit the Veterans with Disabilities Exempt Application directly to the Division and allow up to 4 weeks for processing.

Does Delaware have its own VA regional office?

Yes. The Wilmington VA Regional Benefit Office is at 1601 Kirkwood Hwy, Wilmington, DE 19805, on the same campus as the Wilmington VA Medical Center. It is open weekdays from 8:30 a.m. to 4:00 p.m. for scheduled in-person or virtual appointments.

Who helps Delaware veterans apply for state benefits?

The Delaware Office of Veterans Services has Veteran Service Officers who work statewide out of its Dover headquarters in the Robbins Building, 802 Silver Lake Blvd., Suite 100. Call (302) 739-2792. The office also offers free notary service to veterans and their families.

Sources

Every rating percentage, diagnostic code, and dollar figure on this page is sourced from the references below. See our editorial policy for how we choose and verify sources.

  1. Disabled Veterans School Tax Credit — Delaware Department of Finance
  2. Senate Bill 219 (153rd General Assembly): Exclusion of Military Pensions From Taxable Income — Delaware General Assembly
  3. Senate Bill 219 as amended by Senate Amendment 1 (engrossed text) — Delaware General Assembly
  4. Veterans Benefits — Delaware Office of Veterans Services
  5. Title 21, Chapter 21, Subchapter II: Special license plates (21 Del. C. 2138) — Delaware General Assembly
  6. Exemptions and Exceptions: Military and Veteran — Delaware Department of Natural Resources and Environmental Control
  7. Veterans with Disabilities Exempt Application — Delaware Department of Natural Resources and Environmental Control
  8. Delaware Veterans Home — Delaware Office of Veterans Services
  9. Contact the Office of Veterans Services — Delaware Office of Veterans Services
  10. Wilmington VA Regional Benefit Office — U.S. Department of Veterans Affairs
  11. VA Wilmington Health Care Locations — U.S. Department of Veterans Affairs

This content is for informational purposes only and does not constitute legal or medical advice. For personalized guidance, consult a VA-accredited VSO, attorney, or claims agent.