Delaware Disabled Veteran Benefits

If you are a disabled veteran living in Delaware, or thinking about moving here, this page puts every state-level benefit tied to your VA (U.S. Department of Veterans Affairs) disability rating in one place: the property tax breaks, the state income tax picture, vehicle and plate perks, parks and hunting/fishing, education for you and your kids, the state veterans home, hiring preference, and more. Every dollar figure, deadline, and form name below comes from an official Delaware source, and I link that source so you can check it yourself. Where the state's own pages leave a number unsettled, I tell you to confirm it rather than guess.

Plain-language promise: I keep the how-to steps here so you can act. The only thing I route out is filing or increasing a VA claim, because that is free claims work best handled by an accredited Veterans Service Officer (VSO), never a paid company.

Delaware has no single statewide "100% disabled = zero property tax" law — it has two separate pieces, plus municipal taxes that neither one touches. Read this before you assume your whole bill disappears. (1) A statewide Disabled Veterans School Tax Credit wipes out 100% of your non-vocational school district property tax on your home — that is usually the biggest line on a Delaware tax bill, and it is real, but it is only the school portion. (2) Your county tax is a separate exemption that each county decides on its own: New Castle County adopted a full county-property-tax exemption for 100% disabled veterans, while Kent and Sussex counties should be confirmed directly. (3) If you live inside an incorporated town or city, that municipal tax is a third bill that neither program covers. So the honest answer is "most of it, if you stack the school credit and your county's exemption," not "all of it, automatically." Apply for each piece separately, and apply by April 30 for the school credit.

Sources Dept. of Finance · New Castle County

Property tax exemption

What it is: Delaware relief comes in two separate programs — a statewide school tax credit and a county-by-county county tax exemption. You can qualify for both at once, and together they zero out most of a Delaware property tax bill for a 100% disabled veteran. Neither covers municipal (town/city) taxes. You apply for each with a different office.

The routes to a full exemption, spelled out:

• Route 1 — Disabled Veterans School Tax Credit (statewide; covers 100% of your non-vocational school district property tax). This is a credit equal to the full amount of the regular (non-vocational) school property tax on your primary residence, available since tax year 2022. To qualify you must meet both:
  • Disability standard (meet either one): a 100% VA disability rating, or you receive 100% disability compensation due to service-connected permanent and total disability based on individual unemployability (IU). Delaware's finance page keys on that language, so an IU veteran paid at the 100% rate qualifies on the same footing as a 100%-schedular veteran.
  • Domicile: you must have held legal domicile in Delaware for the past 3 years.
  • Other conditions: it applies to your primary residence; you must have paid your prior-year property tax bill in full to qualify going forward; it is not transferable from one property to another; you must notify the county within 60 days if your disability rating changes; and you cannot combine it with the Senior School Property Tax Credit.
  • How: file the application with your county by April 30 each year, with a valid Delaware driver's license or state ID, your USDVA disability documentation, and a copy of your Social Security card. Form: Application for Disabled Veteran School Property Tax Credit (PDF).
• Route 2 — County property tax exemption (decided county by county). State law lets each county exempt a qualifying disabled veteran from county property tax. The law keys on a veteran holding a 100% VA service-connected permanent and total disability rating, or receiving 100% disability compensation due to individual unemployability, for a home that is your primary residence, solely owned by you (or jointly with your spouse), with a domicile period the county sets. Because it is county-optional, where you live decides what you get:
  • New Castle County adopted it: a full exemption from county property tax for veterans the VA rates 100% disabled, plus a 50% reduction in county sewer and dwelling fees. Apply through the county Office of Assessment, 87 Reads Way, New Castle, at (302) 395-5520.
  • Kent County ((302) 744-2401) and Sussex County ((302) 855-7871): confirm directly whether each has adopted a county-tax exemption and on what terms, since state law leaves the choice to each county.

Surviving spouse: the finance-department materials reviewed do not spell out whether either program continues for a surviving spouse after the veteran's death. Confirm continuation with your county assessment office before relying on it.

1. Confirm your VA status: a 100% rating or 100% compensation via IU (permanent and total), and have your VA award letter ready.
2. For the school credit, download the Disabled Veteran School Property Tax Credit application, attach your Delaware license/ID, USDVA disability documentation, and Social Security card copy, and file it with your county by April 30. Make sure last year's tax bill is paid in full first.
3. For the county exemption, call your county assessment office — New Castle (302) 395-5520, Kent (302) 744-2401, Sussex (302) 855-7871 — ask whether your county grants the 100%-disabled county-tax exemption and what it needs.
4. If you live in an incorporated town or city, ask that municipality separately whether it offers any veteran relief on the municipal portion.
5. Check your next tax bill to confirm the school credit (and county exemption, if adopted) posted.

Sources Dept. of Finance · program FAQ · the state law · New Castle County · county announcement

State income tax

What it is: Delaware does not tax your already federally tax-free VA disability compensation, and it lets military retirees exclude a chunk of retired pay that grows to $25,000 for 2026.

• VA disability compensation is federally tax-free, and Delaware starts from your federal income — so compensation that never enters your federal adjusted gross income is not taxed by Delaware either. Confirm your specific return with a tax professional if anything looks off.
• Military pension exclusion: Delaware phased up the amount of military retired pay you can exclude from state taxable income, regardless of age: $12,500 (2022-2023), $15,000 (2024), $20,000 (2025), and up to $25,000 for tax year 2026 and after. If the regular Delaware pension exclusion is larger for you ($2,000 under age 60, or $12,500 at age 60 and over), you may take that instead. Confirm the exact 2026 figure and how to claim it with the Delaware Division of Revenue before filing.
• Pending bill to watch: a pending bill was introduced to further adjust the military-pension exclusion; treat it as proposed, not settled law, and confirm the current-year rule with the Division of Revenue rather than relying on a bill that may not be enacted.

1. Confirm your VA disability compensation appears nowhere as taxable income on your Delaware return.
2. If you receive military retired pay, claim the military-pension exclusion (up to $25,000 for 2026) on your Delaware return, or the regular pension exclusion if it is larger — check the Division of Revenue's current-year instructions for the exact line.
3. If a past return taxed VA compensation or over-taxed military retired pay, fix it with a preparer familiar with military filings — this is a filing mechanic, not claims work.

Sources Division of Revenue · the pension-exclusion law · the pending bill

Vehicles, plates & tolls

What it is: the Delaware Division of Motor Vehicles (DMV) waives the registration fee on one adaptive-equipment vehicle, issues Disabled American Veteran (DAV) plates, and can add a "Veteran" indicator to your license or ID.

• Registration fee exemption (one vehicle): a vehicle owned by a disabled veteran who is eligible for VA "adaptive equipment" benefits (power steering, power brakes, power window lifts, power seats, or other equipment needed to enter or exit the vehicle) and purchased or modified with VA assistance is exempt from the registration fee, limited to one vehicle per eligible veteran at a time.
• Disabled American Veteran (DAV) license plates: available through DMV to a veteran whose impairment is service-connected with certified VA eligibility documentation; a $10 one-time administrative fee applies to the original application. Form: Form MV549 — DAV License Plate Application (PDF); a version tied to disabled-parking privileges is Form MV549 DAV-HP (PDF).
• Veteran indicator on a license or ID: DMV can add a "Veteran" designation to a Delaware driver license or ID for any honorably discharged veteran. Acceptable proof: Military ID, NGB-22, DD-214, DD-256, Honorable Discharge Certificate, or an out-of-state license already showing the designation. It is free when added during a renewal, address change, or duplicate transaction and $10 as a standalone request. It is not a military ID and does not by itself confer federal benefits.
• Tolls: no Delaware toll-discount program specific to disabled veterans was identified. If tolls matter to you, confirm current policy directly with DelDOT / E-ZPass Delaware rather than assuming one exists.

1. If you got the VA adaptive-equipment benefit, bring that documentation plus your title/registration info to a DMV office and ask for the fee-exempt registration on your one eligible vehicle.
2. For DAV plates, complete Form MV549 with your VA eligibility certification and the $10 fee, at any DMV office or by mail.
3. Ask DMV to add the Veteran indicator to your license or ID at your next renewal (free then), bringing your DD-214 or other accepted proof.

Sources the statute · DMV military tags · DMV driver license / ID

Recreation: parks, hunting & fishing

What it is: a discounted state-parks entrance pass for veterans, and a free lifetime hunting/trapping/fishing license for veterans rated 60% or higher, run through the Department of Natural Resources and Environmental Control (DNREC) Division of Fish & Wildlife.

• State parks entrance discount: veterans who served honorably (or are currently serving), including Delaware National Guard members, with a motor vehicle registered in Delaware get a 50% discount on the annual vehicle entrance pass to Delaware state parks. This is a general veteran discount, not tied to a disability rating. These discounted "Delaware Military Pass" decals are sold only at park offices (not online or at retail), so bring proof of service and confirm the current fee amount at a park office.
• Free lifetime hunting, trapping & fishing license (disability route): Delaware residents with a service-connected disability rating of 60% or higher qualify for a free lifetime license exemption to hunt, trap, and fish. Apply once using the Veterans with Disabilities exempt application, with a VA award letter certifying the rating (allow about 4 weeks). Form: Veterans with Disabilities Exempt Application (PDF).
• VA facility patients: a patient at a VA facility in Delaware does not need to buy a fishing license, provided they carry ID verifying that status.
• Active duty stationed in Delaware also qualify for no-fee or resident-rate licenses (not disability-dependent).

1. For parks, buy the discounted annual vehicle entrance pass (50% off) in person at a Delaware state park office — bring your Delaware-registered vehicle info and proof of service, and confirm the current fee at the office.
2. For the free lifetime license, get your VA letter showing a 60% or higher service-connected rating.
3. Submit the Veterans with Disabilities Exempt Application to DNREC Division of Fish & Wildlife (questions: 302-739-9918) and allow about 4 weeks.

Sources Office of Veterans Services · DNREC Fish & Wildlife

Education for you & your family

What it is: Delaware's main education money is for the children of service members who died in service or are POW/MIA, plus a National Guard tuition benefit — administered through the state's higher-education office.

• Educational benefits for children of deceased / POW / MIA service members: Delaware pays tuition and required fees for a child aged 16-24 who has been a Delaware resident for at least 3 years, whose parent died in service, was held as a prisoner of war, or was declared missing in action — for up to four years, priority to Delaware public colleges (a private or out-of-state school is allowed if your program is not offered at a Delaware public college). Note this is tied to death / POW / MIA status, not to a living veteran's own disability rating. Apply through the Delaware Higher Education Office financial-aid portal.
• Delaware National Guard tuition support: active members of a federally recognized Delaware National Guard unit in good standing get funding support for post-secondary tuition and fees (a Guard benefit, not specific to VA-rated disabled veterans).
• No general state tuition waiver for the disabled veteran personally (as a student) was confirmed in official sources. If you plan to enroll, ask the specific Delaware public college (Delaware State University, University of Delaware, or Delaware Tech) about any veteran tuition programs directly.

1. If a parent died in service or is POW/MIA and the student is a Delaware resident aged 16-24, apply through the Delaware Higher Education Office financial-aid portal and confirm current-year eligibility.
2. If you are in the Delaware National Guard, ask your unit and the Higher Education Office about the tuition-support benefit.
3. For your own enrollment as a veteran, contact the college's veterans/financial-aid office to layer any state or school benefit on top of your federal GI Bill.

Sources Office of Veterans Services

State Veterans' Homes & long-term care

What it is: Delaware runs one state veterans home — the Delaware Veterans Home in Milford — a roughly 150-bed skilled-nursing facility with a special-needs (dementia/Alzheimer's) unit, and higher-rated disabled veterans are not billed for care.

• Eligibility (general): Delaware residency for 3 years before applying, at least 180 days of active duty (or Reserve/Guard service that qualifies you for retirement pay at 60), an honorable discharge, and a clinical need for nursing-home-level care. Confirm the current requirements on the home's admissions page.
• Cost by disability rating: the Delaware Veterans Home does not bill veterans who are 70% or more VA-disabled, and a veteran who is 100% VA-disabled incurs no fee. Other residents pay a basic daily rate (listed as $320/day as of May 1, 2023 — confirm the current rate). Admissions: (302) 424-8572.

1. Confirm you meet the residency, service, and care-need requirements on the Delaware Veterans Home site.
2. Call admissions at (302) 424-8572 for the application and physician's-statement packet, and confirm your cost given your VA rating (no fee at 70%+).
3. Have your discharge document (DD-214) and VA rating letter ready to submit.

Sources Delaware Veterans Home · home FAQs

State hiring & civil service

What it is: Delaware adds veterans' preference points to Merit System hiring scores, with disabled veterans getting the largest boost.

• Merit System veterans' preference: qualifying veterans who meet a job's minimum qualifications get preference points added to their ranking score. Per the Delaware Office of Veterans Services, that is ten points for disabled veterans and five points for other eligible veterans. Preference applies to original entrance into Merit employment (not promotions or layoff retention), and you need a legible copy of your DD-214.
• Who counts as eligible: honorably discharged veterans, Delaware National Guard/Reserve members with 20+ years, un-remarried surviving spouses of deceased veterans or service members, spouses of veterans with a service-connected disability, and veterans with a service-connected disability.
• Military spouse licensing: a military spouse may receive a six-month temporary occupational license while awaiting Delaware endorsement of an out-of-state license.

1. When you apply for a Delaware Merit System job, claim veteran status and request your preference (ten points if you are a disabled veteran), with your DD-214 and VA rating letter ready.
2. Read the eligibility categories on the Delaware State Jobs veterans-preference page to confirm which category fits you.
3. If you are a military spouse with an out-of-state professional license, ask the relevant Delaware licensing board about the six-month temporary license.

Sources State Jobs · Office of Veterans Services

Other: burial, paraplegic pension, hiring credit

What it is: a state cash pension for paraplegic wartime veterans, two state veterans cemeteries, an employer hiring credit, and free administrative services through the Office of Veterans Services.

• Paraplegic veteran state pension — $3,000 per year: a veteran who is paraplegic and fully disabled with no voluntary control over either leg, is listed by the VA as totally disabled for that cause, and whose disability is a direct result of service while the U.S. was at war or engaged in hostilities as a UN member, is eligible for a state pension of $3,000/year, paid in equal monthly installments. File evidence with the state Pension Board of Trustees; you must report if you cease to be totally disabled.
• State veterans cemeteries: veterans, spouses, and dependent children may be interred at Delaware's two state veterans cemeteries — the New Castle County location (Bear) and the Sussex County location (Millsboro).
• Employer hiring credit (for the business that hires you): a Delaware business that hires a qualified veteran (who served in Iraq or Afghanistan) may claim a credit of 10% of the veteran's wages, up to $1,500, for the hire year plus two subsequent years — useful leverage when you job-hunt.
• Free administrative services: the Office of Veterans Services provides free notary service for veterans and their dependents at its headquarters, and provides a death certificate at no charge to next of kin.

1. If you are a paraplegic wartime veteran the VA rates totally disabled for that cause, file with the state Pension Board of Trustees for the $3,000/year pension (start at the Office of Veterans Services).
2. For burial planning, contact the Office of Veterans Services about eligibility at the Bear or Millsboro state veterans cemetery.
3. Point a prospective employer to the veteran hiring credit when you interview, and use the OVS free notary service for any benefit paperwork.

Sources the statute · Office of Veterans Services

Who to call

The Delaware Office of Veterans Services (OVS) is your single front door for the state programs above and for connecting with a free accredited VSO for VA claims and rating help.

• Website: vets.delaware.gov · Benefits overview: vets.delaware.gov/veterans-benefits
• Office of Veterans Services: 802 Silver Lake Blvd., Robbins Building, Suite 100, Dover, DE · (302) 739-2792 · [email protected]
• Property tax: your county assessment office — New Castle (302) 395-5520, Kent (302) 744-2401, Sussex (302) 855-7871 — and the Delaware Dept. of Finance for the school tax credit.

1. Anything tied to your actual VA rating — filing a new claim, appealing, or arguing for a higher percentage — goes to a free accredited VSO. Find one at VA.gov or through the Office of Veterans Services. Never pay a private company for basic claims help.
2. State-program questions (property tax, plates, parks, education, the veterans home, hiring) go to the specific office linked in that section, or start at vets.delaware.gov.

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