For taxpayers under age 60 as of December 31, Delaware's pension and retirement exclusion is:

40% of the amount of pension benefits, not to exceed $12,500.

40% of the amount of retirement income the taxpayer received during the year, not to exceed $12,500. Retirement income includes dividends, capital gains, and interest.

$2,000, or the amount of retirement income the taxpayer received during the year, up to $2,000. Retirement income includes net rental income from real property and qualified retirement plan distributions.

$2,000, or the amount of pension benefits received, whichever is less.