Delaware · 2027 and beyond
Delaware in 2027 and beyond: what is already law, and what is still open
No tax measure on the ballot. The military pension exclusion rises in 2027; a new domicile test already applies at 60. What is on the 2026 return, what starts with tax year 2027, and what is scheduled or conditional after that.
By Charles Trautman, EA, editor
Need to Know Tax · written from Delaware Division of Revenue sources and the unofficial November 3 election returns, November 12, 2026 · not yet reviewed by a Delaware practitioner
No tax measure on the ballot. The military pension exclusion rises in 2027; a new domicile test already applies at 60. This page keeps apart three things that get mixed together in the news: what is on the 2026 return you file in early 2027, what begins with tax year 2027, and what is scheduled, conditional or still undecided after that. Election figures are the unofficial November 3, 2026 returns and are not final until the state certifies them.
What the voters decided on November 3, 2026
No statewide tax measure was on the November 3, 2026 ballot in Delaware. Nothing voted on that day changes a Delaware return.
This return, next year, and later
| When | What applies |
|---|---|
| The 2026 return, filed in early 2027 | Bonus depreciation is capped at 20% for property placed in service in 2026. |
| A person 60 or older may claim the $12,500 retirement exclusion only after three years of Delaware domicile (five for anyone arriving in 2027 or later), under SB 219. | |
| The federal deductions for tips, overtime and car-loan interest never reach Form PIT-RES. | |
| Starting with tax year 2027 | The military pension exclusion, available at any age, rises from $12,500 to $15,000. |
| Delaware allows no bonus depreciation on property placed in service from 2027 through 2030. | |
| 2028 and later, or conditional | The military exclusion rises to $20,000 for 2028 and $25,000 for 2029 and after. |
| Delaware rejoins the federal depreciation rules for property placed in service after December 31, 2030. |
Items under 2027 and later do not change the 2026 return. They matter for 2027 withholding, estimated payments and planning. The detail behind each line is in the other Delaware articles.
The 2025 federal law and the Delaware return
Delaware starts from federal adjusted gross income, and the Division of Revenue’s position is that “absent legislative action, Delaware conforms with Federal tax law.” The deductions taken after AGI never arrive; the business provisions did, until the Legislature decoupled from bonus depreciation.
That is the reason a change on the federal return, such as the deductions for tips, overtime and people 65 and older, may or may not show up on the Delaware return. The federal side is in The new deductions for tips, overtime and seniors.
What to watch
Division of Revenue guidance on how the new domicile test is applied on the 2026 return. When something on this page changes, the change is logged on the updates page with its date.
What to bring
- Your 2026 federal and Delaware returns, once filed, to set 2027 withholding and estimated payments against them
- Your last pay stub of 2026 and the first of 2027, to see whether withholding changed
- Any notice from the state about a 2027 rate, credit or filing change
Questions people ask
Does anything here change the Delaware return I file in early 2027?
Only what is listed under the 2026 return. Everything listed under 2027 or later affects withholding, estimated payments and planning, not the return for 2026.
How will I know if this page changes?
Every change is logged on the updates page with its date and the article it affects. State legislatures meet in early 2027 and some act before the filing deadline.
Delaware, after the election
No tax measure on the ballot. The military pension exclusion rises in 2027; a new domicile test already applies at 60.
Written by Charles Trautman, EA, editor · Need to Know Tax, Lone Tree, Colorado
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Sources and where to check
- Division of Revenue: Tax Season Updates (tips, overtime, car-loan interest and the SALT cap)
- Division of Revenue: Technical Information Memorandum 2025-02, decoupling from the One Big Beautiful Bill Act
- Delaware General Assembly: House Bill 255 (85 Del. Laws c. 231)
- Delaware General Assembly: Senate Bill 219 (85 Del. Laws c. 426)
- Delaware Code, Title 30, Chapter 11, Subchapter II: §1106(b)(3) exclusion and domicile requirement, §1108, §1110, §1117
- Delaware House Republican Caucus: SB 219 passage note, July 2, 2026
- HB 13 / HS 2 for HB 13, bill history
- Division of Revenue: 2025 Form PIT-RES instructions