Delaware Disabled Veteran Benefits: A Complete, Plain-English Guide

If you are a disabled veteran living in "the First State," you have already earned a set of specific benefits from Delaware — property tax relief, special license plates, state park discounts, free hunting and fishing licenses, and more. The tricky part is that these benefits are spread across different state agencies, apply to different disability ratings, and have their own deadlines. This guide pulls them all together so you know what you qualify for and exactly what to do next.

Up front, one thing to understand: most of Delaware's biggest-dollar benefits are tied to a 100% rating (or Individual Unemployability, TDIU). With a lower rating you still get the free hunting license, DAV plates, and state park savings — but property tax relief is weighted toward veterans rated 100% or totally disabled. Let's walk through each category.

Delaware Disabled Veterans School Tax Credit (The Big One)

The most valuable property tax benefit in Delaware is the Disabled Veterans School Tax Credit, run by the Delaware Department of Finance. It is exactly what it sounds like: if you qualify, you get a credit equal to 100% of your non-vocational school district property tax on your primary home.

That matters because school taxes make up a large share of a Delaware homeowner's bill — knocking them out can cut your annual property taxes by roughly half or more.

Who Qualifies for the School Tax Credit

To get this credit, you must meet all of these requirements:

• You receive 100% disability compensation from the U.S. Department of Veterans Affairs (VA) due to a service-connected, permanent and total disability — this includes both a 100% rating and Individual Unemployability (TDIU).
• You have been legally domiciled in Delaware for at least 3 consecutive years.
• The property must be your principal residence, owned solely by you or jointly with your spouse.

You cannot claim this credit at the same time as the Senior School Property Tax Credit — it's one or the other. And only one full credit can be applied per property.

How to Apply

1. Complete the Disabled Veterans School Tax Credit application, available from the Delaware Department of Finance. You'll need your driver's license or state ID, your Social Security number, and documentation of your VA disability rating.
2. Submit the completed application to the county where you live (New Castle, Kent, or Sussex).
3. File by April 30 so the credit applies to the upcoming tax year.

Good news: once approved, you do not need to reapply every year. The credit stays on your home until you move; it is not transferable to a different property. A small number of veterans also receive a direct property tax exemption under county code, but the school credit is the across-the-state program most veterans use.

County Property Tax Exemptions and Credits

Because school taxes and county taxes are billed separately in Delaware, you can sometimes combine the state school tax credit with relief on the county side. The rules differ by county, so here is the short version:

Each county has its own filing deadline (New Castle, for example, generally uses a June 1 date for disability exemptions). The exact dollar figures and deadlines can change, so check with your county's assessment office before filing to confirm the current amounts.

Vehicle Registration Exemptions and Disabled Veteran License Plates

Registration Fee Exemption (Adaptive Equipment)

Severely disabled veterans who qualify for VA "adaptive equipment" benefits — generally meaning they need vehicle modifications such as power steering, power brakes, power seat lifts, or special controls to get in and out of and operate a vehicle — are exempt from registration fees on one automobile. The state issues you free plates for that vehicle.

This is limited to one car per eligible veteran at a time. It's a powerful benefit for veterans with the most serious mobility limitations.

Disabled Veteran (DAV) License Plates

Even without adaptive equipment, you can get a DAV license plate (the letters "DAV" plus a number) if you have a service-connected disability from a qualifying war or conflict:

1. The plate carries a one-time $10 administrative fee at the DMV.
2. There is no additional annual fee beyond the normal registration fee for the plate to be issued.
3. Apply at the Delaware Division of Motor Vehicles with your DD-214 and your VA Benefit Summary / Service Verification Letter showing your service-connected disability.

If your disability also causes a permanent mobility impairment, you can request the DAV-HP version, which displays the wheelchair symbol and carries disabled-parking privileges. And if the plate holder passes away, the surviving spouse may transfer the plate to a vehicle they own.

Income Tax Treatment of VA Benefits and Military Retirement Pay

Here's the clearest tax news in this guide: your VA disability compensation is not taxed — not by the federal government and not by Delaware. Under federal law it is excluded from gross income, and Delaware follows the same treatment. That money is yours, tax-free, at every level.

Separately, Delaware gives military retirees a state income tax exclusion on a portion of their military pension. The exact amount of the exclusion has been increasing over time, and it applies to a United States military pension — meaning Army, Navy, Air Force, Marine Corps, Space Force, Coast Guard, the National Guard, the commissioned corps of NOAA, and the commissioned corps of the Public Health Service.

There is a residency requirement tied to this exclusion, and the eligible dollar amount has grown substantially over time. Because it changes with the budget cycle, check the Delaware Division of Revenue's current guidance for the exact amount for your tax year. In practical terms:

• VA disability compensation: 100% tax-free, federal and state.
• Military retirement pay: Partially excluded from Delaware income tax (up to a set dollar amount that has been expanding).

Delaware Education Benefits

Delaware's state-run education benefit is more targeted than the federal GI Bill. It provides tuition and fees for up to 4 years through the Educational Benefits for Children of Deceased Veterans and Others program, administered by the Delaware Postsecondary Education Commission.

Who It Covers

• The child of a veteran killed on active duty or who died from a service-related disease, wound, or injury.
• The child of a service member held as a prisoner of war (POW) or officially declared missing in action (MIA).
• The child of a Delaware state police officer killed in the line of duty.

Eligibility Requirements for the Student

1. Be between 16 and 24 years old.
2. Have been a Delaware resident for at least 3 years before applying.
3. Be attending or admitted to a post-secondary institution in a program of up to 4 years.

If the program is available at a Delaware public college or university, the benefit covers tuition and fees there; if not offered there, students can use it at a Delaware private or out-of-state institution under the program's rules.

If you are a disabled veteran yourself, your education support comes through the federal GI Bill and related VA benefits — Delaware does not run a blanket state tuition waiver for all disabled veterans. Active Delaware National Guard members who meet membership requirements are eligible for state tuition funding.

Hunting, Fishing, and State Parks

For veterans who love the outdoors, Delaware provides a couple of genuinely useful benefits.

Free Hunting, Trapping, and Fishing License

If you are a veteran honorably discharged from the U.S. Armed Forces with at least a 60% service-connected disability rating, you can obtain a no-fee hunting, trapping, and fishing license from the Delaware Department of Natural Resources and Environmental Control (DNREC). You'll need to provide the state with written certification of your honorable discharge and service-connected disability from the VA.

DNREC also runs a Hunters with Disabilities program with accessible stands and blinds across state wildlife areas, plus permits that let some permanently disabled hunters hunt from their vehicle.

State Park Discount

Veterans who honorably served (or are currently serving, including Delaware National Guard members) and who have a vehicle registered in Delaware receive a 50% discount on the annual vehicle entrance fee to Delaware state parks.

Employment Preferences and Hiring Incentives

Veterans get a meaningful leg up in Delaware state employment, and this is one benefit that extends beyond the veteran themselves.

State Employment Preference Points

Delaware adds preference points to state hiring: 10 points for disabled veterans and 5 points for other eligible veterans. These can also be claimed by the veteran's unmarried widow, widower, or spouse.

Veterans Opportunity Credit (for Employers)

Delaware gives employers a state tax credit for hiring veterans who served in a hostile environment (such as Iraq or Afghanistan): 10% of the veteran's wages, up to $1,500 per year, for the hiring year and the two after. It can make an employer more eager to bring you on board.

Other Benefits Worth Knowing

• Paraplegic Veterans Pension: A veteran who is paraplegic and fully disabled from wartime service may qualify for a Delaware state pension of $3,000 per year, paid monthly. Provide evidence to the state Pension Office.
• Veterans Memorial Cemeteries: Delaware runs two state veterans cemeteries, in Bear and Millsboro, where veterans, spouses, and dependent children are eligible for burial.
• Delaware Veterans Home: A 150-bed long-term care facility in Milford providing skilled nursing, including a special needs unit for dementia and Alzheimer's residents.
• Surviving Spouse Protections: Beyond the DAV plate transfer and preference points, the New Castle and Kent county property tax programs both let a qualifying surviving spouse keep the relief — ask the county if your spouse passes away.

Frequently Asked Questions

Does Delaware have a full property tax exemption for disabled veterans?

No single program exempts all property taxes, but the school tax credit wipes out 100% of your non-vocational school district tax for 100% P&T or TDIU veterans. Combined with county-level credits (New Castle and Kent both offer county relief for totally disabled veterans), many eligible veterans eliminate most of their property tax bill.

What qualifies as the 3-year residency for the school tax credit?

You must be legally domiciled in Delaware for at least 3 consecutive years. Seasonal or temporary stays don't count as domicile. Once approved, you don't reapply each year.

I have a 70% or 80% rating — what do I qualify for in Delaware?

You qualify for the free hunting/trapping/fishing license (60% and up), DAV plates, state park discounts, and employment preference points. The school tax credit and most county property tax relief are reserved for 100% P&T or TDIU veterans.

Is my VA disability compensation taxed by Delaware?

No. VA disability compensation is tax-free at both the federal and state level, and Delaware follows that rule.

Who administers the Delaware education benefit for veterans' children?

The Delaware Postsecondary Education Commission. It covers tuition and fees for up to 4 years for eligible children (ages 16-24) of deceased veterans, POWs, and MIA service members.

Your Next Steps

Here's a practical order of operations so you don't miss anything:

1. Apply for the Disabled Veterans School Tax Credit if you're rated 100% or TDIU — this is your biggest property tax win. Get the application from the Delaware Department of Finance and file with your county by April 30.
2. Order your DAV license plate (and the DAV-HP version if you qualify) at the DMV, and ask about the registration fee exemption if you need adaptive vehicle equipment.
3. Get your free hunting, trapping, and fishing license through DNREC if you're rated 60% or higher, and take the state park entrance discount.
4. Confirm the current military pension exclusion with the Delaware Division of Revenue, especially if you are a military retiree.
5. Check county-level exemptions with your local assessment office, since New Castle and Kent offer additional county tax relief for totally disabled veterans.

Delaware treats its disabled veterans well, but the benefits don't apply themselves — you file the right forms with the right agencies by the right deadlines. Start with the school tax credit and the DAV plate, which have the most direct impact on your household, then work through the rest as they apply to your rating.