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Part of the G.I. Jobs 50 States of Opportunity for Veterans Series

Using the Military Friendly® States Tool, this series explores what makes each state unique and why it may be the perfect place to begin your next mission.

Don’t let Delaware’s size fool you.

The First State has a surprisingly strong case for Veterans looking for a place to build their civilian careers, raise a family or settle into retirement.

Delaware is home to Dover Air Force Base, a major Air Mobility Command installation whose mission centers on global airlift and logistics. The base operates the C-5M Super Galaxy and C-17 Globemaster III and is home to the Department of Defense’s largest and busiest aerial port.

That military presence creates opportunities for Veterans with experience in aviation, aircraft maintenance, logistics, transportation, supply chain management, security, communications and leadership.

Delaware also offers something increasingly important to military retirees: a growing state tax exclusion for military pensions.

As of 2026, Delaware allows up to $12,500 of military pension income to be excluded from state taxable income. A new law signed in August 2026 will increase that exclusion to $15,000 in 2027, $20,000 in 2028 and $25,000 beginning in 2029, subject to the law’s eligibility requirements.

The state also provides a Disabled Veterans School Property Tax Credit that can cover 100% of non-vocational school district property taxes on a primary residence for qualifying Veterans with a 100% service-connected disability or qualifying Individual Unemployability status, subject to residency requirements.

And Delaware’s location is difficult to beat.

A Veteran living in Delaware can reach Philadelphia, Baltimore and Washington, D.C., relatively easily while still enjoying smaller communities, beaches and outdoor recreation.

For Veterans who want military connections, East Coast access, manageable size and a growing list of Veteran benefits, Delaware deserves a spot on the shortlist.

Table of Contents

• Veteran Snapshot
• Why Veterans Choose Delaware
• Delaware by the Numbers
• Employment Outlook for Veterans
• Education Opportunities
• Veteran Benefits in Delaware
• Healthcare & VA Resources
• Best Cities for Veterans
• Cost of Living
• Outdoor Recreation & Veteran Lifestyle
• Pros & Cons
• Is Delaware Right for You?
• Frequently Asked Questions

Using the Military Friendly® States Tool, this series explores what makes each state unique—and why it may or may not be the right place to begin your next mission.

Don’t let Delaware’s size fool you.

The First State has a surprisingly strong case for Veterans looking for a place to build a civilian career, raise a family or settle into retirement.

Delaware is home to Dover Air Force Base, a major Air Mobility Command installation whose mission centers on global airlift and logistics. The base operates the C-5M Super Galaxy and C-17 Globemaster III and is home to the Department of Defense’s largest and busiest aerial port.

That military presence creates opportunities for Veterans with experience in aviation, aircraft maintenance, logistics, transportation, supply chain management, security, communications and leadership.

Delaware also offers something increasingly important to military retirees: a growing state tax exclusion for military pensions.

As of 2026, Delaware allows up to $12,500 of qualifying military pension income to be excluded from state taxable income. A new law signed in August 2026 increases that exclusion to $15,000 in 2027, $20,000 in 2028 and $25,000 beginning in 2029, subject to the law’s eligibility requirements.

The state also provides a Disabled Veterans School Property Tax Credit that can cover 100% of non-vocational school district property taxes on a primary residence for qualifying Veterans with a 100% service-connected disability or qualifying Individual Unemployability status, subject to residency requirements.

And Delaware’s location is difficult to beat.

A Veteran living in Delaware can reach Philadelphia, Baltimore and Washington, D.C., relatively easily while still enjoying smaller communities, beaches and outdoor recreation.

For Veterans who want military connections, civilian career opportunities, East Coast access and a growing list of Veteran benefits, Delaware deserves a closer look.

Delaware at a Glance

Category	Delaware
Best For	Military, logistics, transportation and East Coast access
Veteran Population	59,557
State Income Tax	Yes
Military Pension Exclusion	Up to $12,500 in 2026; increasing beginning in 2027
Median Home Value	$352,000
Median Gross Rent	$1,401/month
Homeownership Rate	73.0%
Major Military Installation	Dover Air Force Base
VA Healthcare System	Wilmington VA Healthcare
Military Community	Strong, especially around Dover

Delaware had an estimated population of about 1.06 million in 2025, including approximately 59,557 Veterans based on 2020–2024 Census estimates.

The Short Version

Delaware is a small state with an outsized military footprint.

Dover Air Force Base gives the state a strong defense, aviation and logistics economy, while Wilmington connects Veterans to finance, healthcare, professional services and the broader Philadelphia job market.

The state is also becoming more attractive for military retirees as its military pension exclusion increases over the next several years.

The catch? Delaware isn’t tax-free, housing costs vary significantly by county, and the civilian job market is smaller than those of neighboring Pennsylvania and Maryland.

Best fit: Veterans in aviation, logistics, transportation, defense, healthcare, finance and professional services, plus military retirees who value Mid-Atlantic access.

Think twice if: You want very low housing costs, a massive civilian job market or a state with no income tax.

Veteran Snapshot

Delaware may not have the population of Texas, Florida or California, but its military footprint is significant relative to its size.

Dover Air Force Base is the state’s biggest military asset and one of the most important air mobility installations in the country.

For Veterans, that means Delaware has a built-in ecosystem for people with backgrounds in:

• Aviation
• Aircraft maintenance
• Logistics
• Transportation
• Supply chain management
• Communications
• Security
• Administration
• Healthcare
• Operations
• Leadership

That experience can translate well into civilian employment without requiring Veterans to completely reinvent themselves.

For help making that translation, see the G.I. Jobs guide to Military Resume vs. Civilian Resume.

Why Veterans Choose Delaware

Delaware’s biggest advantage may be its combination of military infrastructure and location.

Dover Air Force Base anchors the state’s military community and provides a direct connection to careers in air mobility, aviation and logistics.

The 436th Airlift Wing supports global mobility operations, while the 436th Aerial Port Squadron operates what the Air Force describes as the Department of Defense’s largest and busiest aerial gateway.

That creates a natural civilian career pipeline for Veterans.

Someone who spent years managing aircraft, moving cargo, maintaining equipment, coordinating personnel or solving logistical problems doesn’t necessarily need to start over after leaving the military.

Those skills have civilian value.

Delaware is also positioned between several major metropolitan areas. Wilmington is close to Philadelphia, while Dover provides a more manageable alternative farther south.

Veterans can live in Delaware while accessing employment opportunities throughout the broader Mid-Atlantic region.

For military retirees, Delaware’s pension tax treatment is another reason to take a closer look.

The state currently allows a $12,500 exclusion for qualifying U.S. military pensions, and legislation signed in August 2026 will gradually increase the exclusion to $25,000 beginning in 2029.

Delaware is also small enough that services and communities can feel accessible without the overwhelming scale of a major metropolitan area.

In other words:

Military community + civilian employment + East Coast location + Veteran benefits.

Who Delaware Is Best For

Delaware makes the most sense for Veterans who want:

• A strong military community without living in a huge state
• Aviation or logistics careers
• Access to Philadelphia, Baltimore and Washington, D.C.
• A relatively compact state that’s easy to navigate
• Coastal recreation
• A smaller-community lifestyle
• Access to VA healthcare
• A state that provides some tax advantages for military retirees
• A place where military experience can translate directly into civilian employment

It’s particularly interesting for Veterans whose MOS, AFSC or military specialty already lines up with Delaware’s major industries.

If you’re still figuring out which civilian career makes sense for your military experience, G.I. Jobs’ Best Certifications for Veterans guide can also help identify credentials that may strengthen your transition.

Delaware by the Numbers

Category	Delaware
Population	1,059,952
Veteran Population	59,557
Median Home Value	$352,000
Median Gross Rent	$1,401/month
Homeownership Rate	73.0%
State Income Tax	Yes
Military Pension Exclusion	$12,500 in 2026
2027 Exclusion	$15,000
2028 Exclusion	$20,000
2029+ Exclusion	$25,000

The Census Bureau reports a $352,000 median value for owner-occupied homes and $1,401 median gross rent for 2020–2024. Delaware’s homeownership rate was 73%.

Employment Outlook for Veterans

Delaware’s job market may be small compared with neighboring Pennsylvania or Maryland, but Veterans have several advantages.

The first is Dover Air Force Base.

Dover’s mission requires a broad workforce covering:

• Aviation
• Aircraft maintenance
• Logistics
• Transportation
• Supply chain management
• Communications
• Security
• Administration
• Engineering
• Healthcare
• Operations
• Management

The 436th Airlift Wing operates C-5M Super Galaxy and C-17 Globemaster III aircraft, while its aerial port supports large-scale global logistics operations.

That makes Delaware particularly interesting for Veterans whose military careers involved moving people, equipment or information.

But Delaware isn’t only about the military.

The state economy includes healthcare, finance, pharmaceuticals, education, manufacturing, logistics, professional services and government.

Its location also matters. Veterans willing to commute or work across state lines can potentially access the much larger employment markets of Philadelphia, Baltimore and the Washington, D.C., region.

Veteran Employment Support

The Delaware Department of Labor provides specialized services for Veterans through its American Job Centers.

Veterans can receive Priority of Service and assistance from Veteran Employment and Training staff, including employment and training referrals and help navigating workforce programs.

Delaware also provides an incentive directly to employers.

The Veterans Opportunity Credit allows qualified employers to receive a tax credit equal to 10% of a qualified Veteran’s wages, up to $1,500, for the year the Veteran is hired and the following two taxable years.

That gives employers another financial reason to consider hiring qualified Veterans.

A Good Place to Translate Military Experience

Delaware’s employment landscape is particularly interesting for Veterans who already have a clear connection between their military experience and civilian work.

For example:

Military Background	Civilian Opportunities
Aviation	Aircraft maintenance, aviation operations, airport management
Logistics	Supply chain, warehouse management, transportation
Transportation	Fleet management, dispatch, logistics
Maintenance	Industrial maintenance, manufacturing, facilities
Communications	IT, telecommunications, network support
Security	Corporate security, public safety, compliance
Administration	Operations, HR, project coordination
Leadership	Operations management, supervision, project management
Healthcare	Nursing, medical support, healthcare administration

If Your MOS Was…

92Y / Supply Specialist: Delaware’s logistics and transportation economy may be a particularly natural fit.

88N / Transportation Management: Look at freight, distribution, fleet and supply-chain opportunities around Dover, Wilmington and the I-95 corridor.

2T1 / Vehicle Operations: Transportation, fleet and logistics employers are logical targets.

2A / Aircraft Maintenance: Dover’s aviation ecosystem and the broader regional aviation market offer obvious places to start.

25-series / Communications: Look beyond traditional IT companies. Healthcare, finance, defense and professional-services companies all need network and communications talent.

68-series / Healthcare: Delaware’s healthcare sector provides opportunities ranging from clinical work to healthcare administration.

Leadership-heavy MOS/AFSC: Translate team size, budgets, equipment responsibility and measurable results into civilian terms rather than relying on military titles.

That last part matters.

A civilian employer may not know what your MOS means—but they absolutely understand “managed a 20-person team,” “oversaw $4 million in equipment” or “reduced processing time by 18%.”

Education Opportunities

Delaware does not offer a universal state Veteran tuition waiver.

The state does provide education benefits for qualifying children of deceased military service members and certain POW/MIA families. Active members of eligible Delaware National Guard units may also receive funding support for postsecondary tuition and fees.

For most Veterans, however, the federal GI Bill remains the centerpiece of education funding.

Before choosing a school, compare the school’s military support programs and determine how much of your military training can transfer into academic credit.

If you’re considering a higher-cost private school, understand the difference between the Post-9/11 GI Bill and Yellow Ribbon Program before enrolling.

And don’t assume a four-year degree is automatically the best move. A respected industry certification may be a faster route into a new career.

Veteran Benefits in Delaware

Delaware offers several meaningful benefits to Veterans, with some of the most interesting focused on taxes, property and employment.

Military Retirement Taxes

For 2026, qualifying military retirees can exclude up to $12,500 of U.S. military pension income from Delaware taxable income.

A law signed in August 2026 phases the military pension exclusion upward:

• 2026: $12,500
• 2027: $15,000
• 2028: $20,000
• 2029 and later: $25,000

Additional eligibility and residency requirements apply under the new law.

So Delaware does not currently make all military retirement pay tax-free—but its treatment is becoming substantially more favorable.

Disabled Veteran Property Tax Benefit

Delaware offers a particularly significant property tax benefit for qualifying disabled Veterans.

The Disabled Veterans School Property Tax Credit can cover up to 100% of non-vocational school district property taxes on a qualifying primary residence.

Eligibility generally requires a 100% service-connected permanent and total disability rating or qualifying Individual Unemployability status, along with at least three years of Delaware domicile.

This is a significant benefit—but it is not a blanket property tax exemption for all Veterans.

Veterans Opportunity Credit

Delaware’s Veterans Opportunity Credit helps employers rather than providing a direct payment to Veterans.

Qualified employers hiring eligible Veterans can receive a tax credit equal to 10% of the Veteran’s wages, up to $1,500, for the year of hire and two subsequent taxable years.

Delaware Veterans Home

The state also operates the Delaware Veterans Home in Milford.

The facility provides skilled nursing care and has 144 beds across four units, giving eligible Delaware Veterans access to state-run long-term care.

Healthcare & VA Resources

Delaware has one VA healthcare system: VA Wilmington Healthcare.

While the system is based in Wilmington, it serves Veterans throughout Delaware and southern New Jersey and operates multiple outpatient locations.

Delaware locations include:

• Wilmington VA Medical Center
• Kent County VA Clinic in Dover
• Sussex County VA Clinic in Georgetown

The Kent County VA Clinic provides primary care, mental health services, PTSD treatment, laboratory services, women’s health and substance-use treatment.

The Sussex County VA Clinic provides primary care, laboratory services, mental health and other outpatient services.

The Wilmington VA Medical Center provides specialty and mental healthcare and serves Veterans throughout the region.

For Veterans who are newly transitioning, VA Wilmington also provides returning service member care, benefits counseling, rehabilitation, mental health services and referrals.

Best Cities for Veterans

Dover

Best for: Military community and defense careers

Dover is the obvious choice for Veterans who want to remain connected to the military.

Dover Air Force Base is the city’s defining military institution and supports a major global mobility mission.

Pros

• Strong military community
• Dover Air Force Base
• Defense and logistics jobs
• Central location
• Access to military-connected services

Cons

• Smaller civilian job market
• Fewer big-city amenities

Wilmington

Best for: Healthcare, finance and professional careers

Wilmington is Delaware’s largest city and the state’s major business center.

Veterans can access employment in:

• Finance
• Banking
• Healthcare
• Insurance
• Professional services
• Government
• Technology

Wilmington also puts Veterans close to Philadelphia and the larger Mid-Atlantic employment market.

Pros

• Broadest local job market
• Major healthcare presence
• Close to Philadelphia
• Urban amenities
• VA medical center

Cons

• Higher housing costs than some southern Delaware communities
• More urban environment

Newark

Best for: Education and college-town living

Newark is home to the University of Delaware and offers a combination of education, restaurants, parks and access to the northern Delaware job market.

Pros

• University of Delaware
• College-town atmosphere
• Access to Wilmington and Philadelphia
• Strong community amenities

Cons

• Housing costs
• Less direct military presence

Middletown

Best for: Families and suburban living

Middletown is a growing central Delaware community that can appeal to Veterans who want more space while remaining within commuting distance of Wilmington, Dover and northern Delaware employment centers.

Pros

• Family-friendly environment
• Growing community
• Central location
• Suburban lifestyle

Cons

• Growing traffic
• Less urban entertainment

Milford

Best for: Smaller-community living and access to the coast

Milford sits between Dover and Delaware’s southern beach communities and is also home to the Delaware Veterans Home.

Pros

• Smaller community
• Access to beaches
• Lower-key lifestyle
• Delaware Veterans Home

Cons

• Smaller employment market
• Fewer major employers

Cost of Living

Expense	Delaware	Consideration
Housing	Moderate	Varies significantly by county
Rent	Moderate	State median $1,401
Property Taxes	Varies	Local school taxes matter
Groceries	Moderate	—
Transportation	Moderate	Useful location for regional commuters
Healthcare	Moderate	Strong regional access

Delaware’s median gross rent was $1,401 and its median owner-occupied home value was $352,000 for 2020–2024.

One reason Delaware can be attractive is that there isn’t a single cost-of-living experience across the state.

Northern Delaware tends to be more connected to the expensive Philadelphia region, while central and southern Delaware can offer a different housing environment.

Veterans should also factor in the state’s military-pension exclusion.

For qualifying disabled Veterans, the school property tax credit can make the homeownership calculation even more favorable.

Outdoor Recreation & Veteran Lifestyle

Delaware’s outdoor appeal is less about mountains and more about water, beaches and accessibility.

Veterans can enjoy:

• Beaches
• Fishing
• Boating
• Kayaking
• Hiking
• Cycling
• Camping
• Hunting
• Golf
• Birdwatching
• State parks
• Coastal recreation

Cape Henlopen State Park and Delaware Seashore State Park provide plenty of opportunities for Veterans who want to spend weekends outside.

The state’s small size is another lifestyle advantage.

You can live in central Delaware and reach the beaches without turning the trip into a cross-country operation.

And if you’re craving something bigger, Philadelphia, Baltimore and Washington, D.C., are all within reasonable reach depending on where you live.

Veteran Reality Check

Delaware looks good on paper.

But here’s what the brochure doesn’t necessarily tell you.

1. Delaware is small—which is both the point and the limitation.

You won’t find the enormous employment market of Texas, Florida or California.

That means your location matters.

2. Don’t assume Delaware is cheap.

Housing can be reasonable compared with parts of the Northeast, but northern Delaware’s proximity to Philadelphia changes the equation.

Look at the actual county and commute—not just the statewide median.

3. Military retirement isn’t completely tax-free.

The exclusion is becoming more generous, but Delaware still isn’t in the same category as states that don’t tax military retirement income at all.

4. Dover and Wilmington are very different.

Dover is the stronger choice for military and logistics connections.

Wilmington is stronger for finance, healthcare and professional services.

5. The Mid-Atlantic location is a major advantage.

If you want access to several major cities without living directly in one, Delaware’s location can be hard to beat.

Pros & Cons

Pros

✔ Major military presence at Dover Air Force Base

✔ Strong aviation and logistics career opportunities

✔ Military pension tax exclusion

✔ Military pension exclusion increasing to $25,000 by 2029

✔ Significant property tax benefit for qualifying disabled Veterans

✔ Veteran employment assistance

✔ Veterans Opportunity Credit encourages employers to hire Veterans

✔ Wilmington VA Medical Center and outpatient clinics

✔ Easy access to Philadelphia, Baltimore and Washington, D.C.

✔ Beaches and outdoor recreation

✔ Small state with relatively easy travel between communities

Cons

✖ State income tax

✖ Military retirement is not completely tax-free

✖ Smaller civilian job market than neighboring metro areas

✖ Housing costs vary significantly

✖ Limited large-city amenities

✖ Some Veterans may prefer a state with a larger military community

Is Delaware Right for You?

Delaware is worth serious consideration if you’re looking for a small state with a surprisingly large military footprint.

It is particularly attractive for:

• Air Force Veterans
• Aviation professionals
• Logistics specialists
• Transportation professionals
• Supply chain managers
• Veterans working in defense
• Military retirees
• Veterans who want East Coast access
• Veterans who want to live near Philadelphia without living in Philadelphia
• Veterans who want beaches without giving up access to major cities

The state’s biggest differentiator is probably its combination of location and military infrastructure.

Dover Air Force Base provides a strong military connection, while Wilmington gives Veterans access to a broader civilian economy.

The financial picture is also becoming more attractive for military retirees.

Delaware’s military pension exclusion is scheduled to increase from $12,500 in 2026 to $25,000 beginning in 2029.

And qualifying disabled Veterans may be able to eliminate non-vocational school district property taxes on their primary residence through the state’s Disabled Veterans School Property Tax Credit.

Delaware probably isn’t the obvious choice for a Veteran looking for the cheapest housing in America or the largest military community.

But if you want military connections, career opportunities, tax advantages, coastal recreation and access to the entire Mid-Atlantic, Delaware makes a compelling case.

The G.I. Jobs Take

Delaware isn’t trying to be everything to everyone.

That’s actually part of its appeal.

For the right Veteran, it’s a state where military experience can translate naturally into civilian employment, particularly in aviation, logistics, transportation and defense.

Add Wilmington’s professional economy, access to major East Coast cities, VA healthcare and increasingly favorable treatment of military retirement income, and Delaware becomes more interesting than its size might suggest.

The key is choosing the right part of the state for your goals.

Want Dover and military connections? Look south and central.

Want finance, healthcare and a larger civilian job market? Look north.

Want smaller communities and beach access? Look toward southern Delaware.

Delaware may be small.

Your options don’t have to be.

Frequently Asked Questions About Delaware for Veterans

Is Delaware a good state for Veterans?

Yes. Delaware offers Veterans access to Dover Air Force Base, Veteran employment programs, VA healthcare, education resources, military pension tax benefits and significant property tax relief for qualifying disabled Veterans.

Does Delaware tax military retirement?

Delaware does tax military retirement income, but qualifying military retirees can exclude up to $12,500 of military pension income in 2026. A law signed in August 2026 increases the exclusion to $15,000 in 2027, $20,000 in 2028 and $25,000 beginning in 2029, subject to applicable eligibility requirements.

Is military retirement becoming more tax-friendly in Delaware?

Yes. Delaware recently enacted legislation increasing the military pension exclusion over three years, ultimately reaching $25,000 beginning in 2029.

What are the best cities in Delaware for Veterans?

Dover is particularly strong for Veterans who want to remain connected to the military and defense community. Wilmington is better for professional careers and healthcare, Newark is a strong education-focused option, while Middletown and Milford offer smaller-community alternatives.

Does Delaware have a large military community?

For such a small state, yes. Dover Air Force Base is a major military installation and global airlift hub. Its aerial port is the Department of Defense’s largest and busiest.

Does Delaware offer property tax benefits to disabled Veterans?

Yes. Qualifying Veterans with a 100% service-connected permanent and total disability rating or qualifying Individual Unemployability status may be eligible for a credit covering 100% of non-vocational school district property taxes on a primary residence, subject to requirements including Delaware residency.

Does Delaware have good VA healthcare?

Yes. VA Wilmington Healthcare operates the Wilmington VA Medical Center and outpatient clinics in Delaware, including the Kent County VA Clinic in Dover and Sussex County VA Clinic in Georgetown.

What jobs are good for Veterans in Delaware?

Veterans may find strong opportunities in aviation, logistics, transportation, defense, healthcare, finance, manufacturing, government and professional services. Dover Air Force Base creates especially strong opportunities for Veterans with aviation and logistics backgrounds.

Is Delaware expensive for Veterans?

Delaware’s housing costs are moderate compared with some neighboring Northeast markets, although prices vary considerably by location. The 2020–2024 median home value was $352,000 and median gross rent was $1,401.

If you’re comparing Delaware with other states, start with the complete Best States for Veterans series.

The right state isn’t necessarily the state with the most benefits. It’s the state whose benefits, jobs, housing and lifestyle actually fit your next chapter.

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