DE HB448

Allows Delaware residents age 60 or older to deduct their full pensions and qualified retirement income from state taxable income beginning January 1, 2025, with no dollar cap limit.

Maintains existing $2,000 pension deduction limit for residents under age 60, but allows them to claim up to $12,500 for United States military pensions (whichever is greater).

Residents age 60 or older can deduct up to $12,500 in pensions and eligible retirement income for taxable years beginning January 1, 2022 through December 31, 2024.

Defines "eligible retirement income" to include distributions from qualified retirement plans, 401(k) plans, government deferred compensation plans, and income from dividends, capital gains, interest, and rental property.

Specifies that eligible retirement income received by spouses as joint tenants or tenants by the entirety is deemed split equally between them.