← Connecticut | Full Rankings | Florida →
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
Veteran Snapshot
| Category | Delaware |
|---|---|
| Overall Ranking | See full 50-state rankings |
| Best For | Military, logistics, transportation & East Coast access |
| Veteran Population | 59,557 |
| State Income Tax | Yes |
| Military Pension Exclusion | Up to $12,500 in 2026; increasing beginning 2027 |
| Cost of Living | Around National Average to Above Average |
| 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 in the 2020–2024 Census estimates.
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 base’s 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. The unit processes hundreds of aircraft each month and supports missions around the world.
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-cost 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, Delaware offers a somewhat unusual combination:
Military community + civilian employment + East Coast location + Veteran benefits.
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 Military Pension Exclusion | $15,000 |
| 2028 Military Pension Exclusion | $20,000 |
| 2029+ Military Pension 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%.
The state’s military pension exclusion is scheduled to increase beginning with tax year 2027 under legislation signed in August 2026.
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. Services can include employment and training referrals and help navigating eligibility for 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.
Military Friendly® Employers
Veterans looking for companies that actively recruit and support former service members should explore Military Friendly® Employers.
And before applying, make sure your resume translates military accomplishments into language civilian hiring managers understand.
Education Opportunities
Delaware may not have the sheer number of colleges found in larger states, but Veterans have several solid options.
Major institutions include:
- University of Delaware
- Delaware State University
- Wilmington University
- Delaware Technical Community College
- Goldey-Beacom College
- Wesley College programs incorporated into Delaware State University
For Veterans looking for shorter, career-focused training, Delaware Technical Community College is particularly worth investigating.
Delaware Tech has Veterans and Service Members counselors at its campuses in Dover, Georgetown, Stanton and Wilmington. Eligible Veterans and spouses receive priority of service for certain registration, training and placement opportunities.
The college also has Veterans Inspiring Progress student organizations designed to provide support, advocacy and resources to student Veterans and service members.
State Education Benefits
Delaware’s state-sponsored education benefits are more targeted than those in some other states.
For example, the state provides educational 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 participation in military education programs and determine how much of your military training can transfer into academic credit.
Veterans using Post-9/11 GI Bill benefits should also understand the difference between the Yellow Ribbon Program and Post-9/11 GI Bill before enrolling in a higher-cost program.
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
This is one area where Delaware is becoming more attractive.
For 2026, qualifying military retirees can exclude up to $12,500 of U.S. military pension income from Delaware taxable income. The law applies to qualifying military pensions regardless of age under the military-pension exclusion.
But there is a significant update for anyone considering Delaware long term.
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 residency requirements apply to certain Veterans age 60 and older 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.
The application deadline for the upcoming tax year is April 30.
This can be a major benefit for qualifying homeowners.
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.
The 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 also provides specialty and mental healthcare and serves more than 47,000 Veterans each year across its broader system.
The Wilmington VA Medical Center received a 4-out-of-5-star CMS hospital quality rating in 2026, based on measures including mortality, safety, readmissions, patient experience and timely and effective care.
Veterans can also access Vet Centers and other counseling resources through the VA system.
For Veterans who are newly transitioning, VA Wilmington specifically provides returning service member care, benefits counseling, rehabilitation, mental health services and referrals.
Best Cities for Veterans
Because Delaware is small, Veterans can choose between very different lifestyles without ever being too far from another part of the state.
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. Its aerial port is the Department of Defense’s largest and busiest.
Pros
- Strong military community
- Dover Air Force Base
- Defense and logistics jobs
- Lower-cost alternative to some Northeast metros
- Central location
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
- 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.
The Census Bureau estimates Newark’s population at roughly 30,000, with about 912 Veterans in the 2020–2024 period.
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 community in central Delaware and can appeal to Veterans who want more space while remaining within commuting distance of Wilmington, Dover and the broader northern Delaware job market.
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 Delaware’s coast
Milford sits between Dover and Delaware’s southern beach communities.
It 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 | Relatively favorable overall | Varies locally |
| 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 to Veterans is that there is no 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.
And beginning in 2027, that exclusion will become more generous under the new law, eventually reaching $25,000 in 2029.
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, Delaware Seashore State Park and the state’s extensive coastal areas 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.
For Veterans who prefer four seasons, beaches and Mid-Atlantic access over mountains and sprawling wilderness, Delaware can be a comfortable middle ground.
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.
Frequently Asked Questions
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. The base’s 436th Aerial Port Squadron operates the Department of Defense’s largest and busiest aerial port.
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.
