DELAWARE RETIREMENT INCOME TAX · TAX YEAR 2026
Does Delaware tax Social Security and retirement income?
Delaware does not tax Social Security benefits. From age 60, Delaware excludes up to $12,500 per person of pension and IRA income; before 60 the pension exclusion is $2,000. A single 67-year-old with $24,000 of Social Security, a $20,000 private pension and $10,000 of IRA withdrawals pays $125 in Delaware income tax for 2026.
Your estimate
- Delaware income tax
- $125.00
- Federal income tax
- $1,810.00
- Total income tax
- $1,935.00
Subtracted from Delaware income
- Social Security
- $11,300.00
- Pension exclusion
- $12,500.00
- Additional standard deduction (65+)
- $2,500.00
Delaware credits
- Age 60 personal credit
- $110.00
Interest counts as eligible retirement income from 60; other income entered is treated as interest split equally on a joint return. Early and disability distributions before retirement age are not modeled.
Delaware tax at different retirement incomes
Delaware income tax for 2026 on a single 67-year-old with $24,000 of Social Security, and on a married couple, both 67, with $20,000 each. Half the pension and IRA income is a private pension and half IRA withdrawals, all received by one spouse in the couple.
| Pension and IRA income | Single | Married |
|---|---|---|
| $20,000 | $0 | $0 |
| $40,000 | $612 | $109 |
| $60,000 | $1,711 | $1,172 |
| $100,000 | $4,159 | $3,560 |
| $150,000 | $7,459 | $6,860 |
Does Delaware tax Social Security?
No. Social Security and Railroad Retirement benefits are not taxable in Delaware, so any amount included in federal AGI is subtracted.
Of the single 67-year-old's $24,000 in benefits, $11,300 is federally taxable and Delaware taxes none of it. Of the couple's $40,000, $28,100 is federally taxable and Delaware taxes none of it.
Does Delaware tax pensions?
Partly. Private and government pensions get the same exclusion, one per person: up to $2,000 before 60, or $12,500 for a military pension, and up to $12,500 from 60. Each spouse uses only their own exclusion, and there is no income limit. Early distributions and disability pensions before retirement age do not qualify.
State tax for a single 67-year-old with $24,000 of Social Security, a $20,000 pension of each type and $10,000 of IRA withdrawals. Excluded is the part of the pension Delaware exempts.
| Pension | Excluded | State tax |
|---|---|---|
| Private | $2,500 | $125 |
| Delaware government | $2,500 | $125 |
| Federal civil service | $2,500 | $125 |
| Military | $2,500 | $125 |
Does Delaware tax IRA and 401(k) withdrawals?
Partly. From 60, IRA and 401(k) withdrawals count toward the same $12,500 exclusion, along with interest, dividends, capital gains and net rental income. Before 60 they do not qualify. Qualified Roth IRA withdrawals are not taxed.
With $24,000 of Social Security, $20,000 of IRA withdrawals and no other income, a single 67-year-old pays no Delaware income tax for 2026.
At what age do retirement tax breaks start in Delaware?
At 60, when the exclusion rises to $12,500 and covers IRA income, and each person gets a $110 personal credit. At 65, the standard deduction rises by $2,500 for each person 65 or older.
State tax at each age where the rules change. The single filer has $24,000 of Social Security, a $20,000 private pension and $10,000 of IRA withdrawals; the couple, both that age, has $20,000 of Social Security each and a $30,000 pension and $20,000 of IRA withdrawals.
| Age | Single | Married |
|---|---|---|
| 59 | $878 | $1,697 |
| 60Pension exclusion, Age 60 personal credit | $245 | $894 |
| 65Additional standard deduction (65+) | $125 | $617 |
What the calculator leaves out
Interest counts as eligible retirement income from 60; other income entered is treated as interest split equally on a joint return. Early and disability distributions before retirement age are not modeled.
The calculator uses Delaware rules from the 2025 forms and instructions, the latest published.
Federal tax uses the 2026 brackets, the standard deduction with the extra amount at 65, and the $6,000 senior deduction. Estimates assume no other deductions, credits or local taxes except as noted.