Delaware SCRA Benefits: State-Duty 6% Cap for the Guard
Part of: The Complete Guide to the SCRA
Most states leave their Guard exposed the moment a governor signs the activation order, because the federal SCRA only covers federal service. Delaware does not. It wrote its own Servicemembers Civil Relief Act, and the heart of it is a simple promise: on state active duty of more than 30 days, the core relief follows you.
What Delaware adds to the federal floor
| Protection | Federal SCRA | Delaware |
|---|---|---|
| Guard on state active duty (30+ days) | ✕ Not covered | ✓ Covered (6 Del. C. ch. 25D) |
| 6% interest rate cap on pre-service debt | ✓ | ✓ Extended to state-duty Guard (§ 2509D) |
| Default-judgment protection | ✓ | ✓ Mirrored, with counsel appointed (§ 2503D) |
| Lease termination | ✓ 50 U.S.C. § 3955 | State act is silent; use the federal rule |
| State income tax on the duty-station election | Depends on state | Has an income tax; elect your home state |
State active duty: the cap follows you
The federal rate cap lives in 50 U.S.C. § 3937, and it goes dark on state orders. Delaware’s § 2509D picks it up. A Delaware Guard member on state active duty for more than 30 consecutive days gets the same 6% ceiling on pre-service debt that a Title 10 activation would trigger, claimed the same way: written notice and a copy of the state orders. The rate-cap mechanics are identical, so run the same play and use the letter generator to produce the notice.
The companion protection is in § 2503D. If a creditor tries to take a default judgment against you while you are serving, the court must treat you as a protected servicemember, appoint counsel before entering judgment, and let you move to reopen a judgment that slipped through. That is the federal default-judgment shield, available on Delaware state orders.
The honest gaps
Chapter 25D is focused. It does not write a state lease-termination statute or a state eviction rule, so do not expect the lease exit to come from Delaware law on a pure state activation. Those protections are federal, under § 3955, and they apply in Delaware whenever you are on federal orders. If you are on state duty and need to break a lease, take it to your unit legal office and document the orders.
The tax side is ordinary. Delaware taxes income, so the move is the standard duty-station tax election: a nonresident stationed here keeps their home state and pays Delaware nothing on military pay.
Run the Delaware stack
- Delaware Guard on state active duty 30+ days: send written notice with your state orders to every pre-service creditor and invoke the 6% cap under 6 Del. C. ch. 25D (letter generator).
- Sued or served while activated: cite § 2503D, demand appointed counsel, and move to reopen any default judgment entered during service.
- On federal orders, run the full federal kit: 6% cap, lease exit, and foreclosure shields.
- Lease problem on a state activation: the state act is silent, so document orders and work it through your legal office.
- Stationed in Delaware from out of state: confirm the tax election so withholding follows your home state.
The law behind this: 6 Del. C. ch. 25D
Delaware Servicemembers Civil Relief Act — 6% cap and default-judgment protection extended to the Guard on state active duty — read the statute.
Frequently asked questions
Does Delaware cover the National Guard on state active duty?
Yes, and that is the point of the state law. The Delaware Servicemembers Civil Relief Act defines covered military service to include a Delaware National Guard member called to state duty status for more than 30 consecutive days (6 Del. C. § 2502D). Federal SCRA does not reach state orders, so chapter 25D is what fills the gap.
What does the Delaware act actually protect?
The core financial and civil relief: a 6% cap on interest for obligations incurred before service (6 Del. C. § 2509D), and protection against default judgments, including appointment of counsel and the ability to reopen a judgment entered while you were serving (§ 2503D). It tracks the federal model on these points.
Does the Delaware act cover lease termination and eviction?
No. Chapter 25D centers on the interest cap and court protections; it does not add a state lease-termination or eviction statute. For those, you use the federal SCRA, which applies in Delaware at full strength on federal orders. On pure state orders, handle leases through your unit legal office.
Does Delaware tax military pay?
Delaware has a state income tax. A nonresident stationed in Delaware on military orders pays their elected home state on military pay, not Delaware, under the standard residency rules. Sort it with the tax election guide and your base tax center.
Sources
Heads up: SCRA Saver publishes general information, not legal or financial advice. Laws change and every situation differs. Confirm details with your installation legal assistance office (free for service members) or a licensed professional.