Delaware Senior School Property Tax Credit, the HB 73 Defeat, and the Disabled Veterans Carve-Out
Updated April 2026
House Bill 73 would have raised Delaware's Senior School Property Tax Credit from $500 to $1,000 starting with tax year 2026. It was defeated in the Delaware House on August 13, 2025, 17 yes, 10 no, 12 not voting, 2 absent. The credit remains capped at $500 for the 2026 tax year and forward unless successor legislation passes. Several third-party guides written before August 2025 referenced the $1,000 figure as if it were already law; it is not. The Delaware Department of Finance senior-relief page continues to show $500 as the maximum, which is the correct current figure.
The senior credit is the headline state program, but Delaware also runs a substantially more generous benefit for qualifying disabled veterans, a 100% credit on non-vocational school district property tax plus full county and school tax exemption for veterans rated 100% service-connected permanent and total or individually unemployable. The two programs are mutually exclusive: a senior who is also a qualifying disabled veteran files for one or the other, not both. This guide walks through both, the tiered domicile requirement that catches recent movers, and the application mechanics each year.
The Senior School Property Tax Credit (Current $500 Max)
Administered by the Delaware Department of Finance with intake through county offices in New Castle, Kent, and Sussex (Delaware's only three counties), the Senior School Property Tax Credit provides a credit equal to 50% of regular school property taxes, capped at $500 per year. The credit applies only against the school district portion of the property tax bill, not the county or municipal portion, and only on the homeowner's primary residence.
Eligibility:
- Age 65 or older as of the application date.
- Primary residence: the property is the owner's legal domicile and primary place of abode.
- No income test. A high-income retiree in a high-value Greenville home qualifies on the same terms as a low-income retiree in a Sussex County beach cottage.
- Domicile tenure (tiered, see next section).
Local school boards retain authority to set the actual credit amount up to the statutory cap. So a few districts may approve less than $500; the maximum granted under current law is $500. Confirm with your school district what amount they've authorized before assuming the full $500 applies.
The Tiered Domicile Requirement: When You Moved In Determines How Long You Wait
Delaware uses a tiered residency test that varies based on when you established legal domicile in the state. Three tiers, applied based on your move-in date:
- Established domicile before December 31, 2012: No additional tenure requirement. Eligible upon turning 65.
- Established domicile after December 31, 2012 but before January 1, 2018: Must have been legally domiciled in Delaware for at least 3 consecutive years before applying.
- Established domicile on or after January 1, 2018: Must have been legally domiciled in Delaware for at least 10 consecutive years before applying.
Concrete consequence: a 67-year-old who moved to Delaware in 2024 cannot claim the credit until tax year 2034, ten years from the date legal domicile was established. A neighbor who moved to Delaware in 2014 and is the same age could have started claiming in 2017. The tiered rule was a budgetary response to slow the growth of the program; whether the legislature ever revisits it is a political question, not a legal one. For now, the 10-year wait is the binding rule for any senior who moved in 2018 or later.
The 10-year requirement is unusually severe, only Colorado's 10-year continuous occupancy rule for the senior homestead exemption is comparable in severity, and Colorado's rule applies to all seniors uniformly rather than tiered by move-in year.
The Disabled Veterans School Tax Credit (100%, Significantly More Generous Than Senior)
Beginning with applications first accepted in 2022, Delaware grants qualifying disabled veterans a credit equal to 100% of regular non-vocational school district property tax on the primary residence. Beyond that, qualifying veterans also receive full exemption from county property taxes and local school taxes, the school credit covers the school district portion; the county/local exemption covers everything else.
Eligibility:
- VA-rated 100% service-connected permanent and total disability, OR
- VA-rated individually unemployable due to service-connected disability (a separate VA determination, covers veterans whose combined rating is below 100% but who are determined unable to maintain substantially gainful employment due to service-connected conditions).
- Held legal domicile in Delaware for the last 3 years.
- Property is owner's primary residence.
- Not delinquent on prior property tax bills.
Application deadline matches the senior program: April 30. Use the Disabled Veteran School Property Tax Credit application (separate form from the senior application).
Why You Choose Senior OR Disabled Veteran, Not Both
Delaware's rule: an applicant receiving the Disabled Veterans School Tax Credit may not also claim the Senior School Property Tax Relief Credit. The two are mutually exclusive, not stackable.
For a senior who is also a qualifying disabled veteran, the math is essentially always in favor of the DV program: the DV credit is 100% of school district tax (no $500 cap) plus full county/school exemption beyond that. The senior credit is 50% of school district tax capped at $500. On a $5,000 annual school tax bill, the senior credit caps at $500 (10% effective relief); the DV credit covers the full $5,000 (100% relief), and the additional county exemption covers the rest of the property tax bill.
The choice usually comes down to which documentation you have on hand. The DV program requires VA-issued disability documentation (rating decision letter or 100% disability award notice). The senior program requires only proof of age and Delaware domicile. A senior unsure whether their VA rating qualifies should pull their most recent rating decision and check before defaulting to the senior credit, the DV benefit is roughly 10x larger in dollar terms for most homeowners.
Application Mechanics: April 30 Deadline and the Prior-Year-Paid-in-Full Rule
Both programs share the same application calendar:
- Application deadline: April 30 for the upcoming tax year. Late applications are processed for the year after.
- Required documents: valid Delaware driver's license or state ID confirming age (for senior) or VA documentation (for DV); proof of property ownership; proof of Delaware domicile establishment date.
- Prior-year tax must be paid in full before the credit applies to the next year. A homeowner delinquent on the previous year's property tax bill loses access to the credit for the subsequent year. This rule catches some seniors who fall behind in a hardship year and don't realize they've forfeited the credit until they apply for the next cycle.
- Application by county: file with the appropriate county office, New Castle ((302) 395-5520), Kent ((302) 744-2341), or Sussex ((302) 855-7871). The state Department of Finance sets the rules; counties process applications.
Frequently Asked Questions
I read that the senior credit is going up to $1,000 in 2026. Is that wrong?
Yes, that's outdated reporting. House Bill 73 would have raised the cap from $500 to $1,000, but the bill was defeated in the Delaware House on August 13, 2025 (17 yes, 10 no, 12 not voting, 2 absent). It did not become law. The cap remains $500 for tax year 2026. Any guide written before August 2025 that referenced the $1,000 figure was reporting on the proposed legislation as if it were certain to pass. The Delaware Department of Finance senior-relief page continues to show $500, which is correct. A separate resolution to study senior property tax relief is moving through the legislature, but no successor bill has been enacted as of this writing.
I moved to Delaware in 2020 at age 64. When can I claim the senior credit?
Tax year 2030. The 2018-and-later domicile tier requires 10 consecutive years of legal Delaware domicile before eligibility. You established domicile in 2020, so the 10-year clock matures in 2030. Your age qualifies you the moment you turned 65 (in 2021), but the residency tenure clock runs separately. There is no waiver mechanism for shortened tenure based on age, hardship, or previous residency in another state.
I'm a 70-year-old veteran with a 70% combined service-connected disability rating, and the VA classifies me as individually unemployable. Senior credit or Disabled Veterans credit?
Disabled Veterans, by a wide margin. The DV program accepts individual unemployability status as an alternative to the 100% combined rating, so you qualify on that basis even though your combined rating is 70%. The DV credit is 100% of school district property tax (no $500 cap) plus full county and school tax exemption beyond that. The senior credit is capped at $500 of school district tax. For most Delaware homeowners, the DV benefit is roughly 10x larger in annual dollar terms. File the Disabled Veteran School Property Tax Credit application, separate form from the senior application, by April 30. They are mutually exclusive, so claim only the DV.
I fell behind on last year's property tax. Can I still claim the senior credit this year?
Not until you're paid in full. Delaware's rule is that the prior year's property tax bill must be paid in full before the credit applies to the next year. If you're delinquent on tax year 2025, the senior credit doesn't apply to your 2026 bill. Pay the back amount, then reapply at the next application window. The same rule applies to the Disabled Veterans credit. Plan around any cash-flow gap by paying down arrears before April 30 of the year you want the credit applied.
My school district approved less than $500 as the local credit amount. Can I appeal that?
Not as an individual taxpayer through the state credit system. Local school boards have statutory authority to set the actual credit amount up to the $500 cap. The state law authorizes the credit; local school boards decide what amount to authorize. If your district approved less than the maximum, the path is local advocacy at school board meetings, not an administrative appeal of the credit decision. You can confirm your district's approved credit amount with your school district treasurer or county property tax office.
If my spouse is a qualifying disabled veteran and dies, do I keep the DV property tax exemption?
Generally yes, Delaware extends the Disabled Veterans property tax exemption to the unmarried surviving spouse of a qualifying veteran in many circumstances, with conditions on continued primary-residence occupancy and Delaware domicile. The specific rules are administered by the Delaware Department of Finance and require documentation of the veteran's qualifying status at the time of death. Contact the Department directly with the deceased veteran's VA documentation; the surviving-spouse continuation is not automatic and requires application before the next April 30 deadline.
