Arizona retirees have access to some of the most competitive fixed annuity rates in the country. With a flat 2.5% state income tax — one of the lowest in the U.S. — and a large independent broker market serving the Phoenix, Scottsdale, Tucson, and Flagstaff corridors, Arizona is one of the better states for annuity buyers.
Below are today’s best MYGA (multi-year guaranteed annuity) rates available to Arizona residents, filtered to show only A-rated carriers, updated daily.
2-Year MYGA Rates
| Carrier | Product | AM Best | Rate | Term | Min Premium | Free Withdrawal |
|---|---|---|---|---|---|---|
| Axonic Insurance | Waypoint 2 MYGA | 5.00%Top Rate | 2 yr | $100,000 | 10% | |
| Oceanview Life and Annuity | Harbourview 2 | 4.80% | 2 yr | $70,000 | 10% | |
| GBU Life | Asset Guard Select 2 | 4.75% | 2 yr | $25,000 | 10% | |
| Mass Mutual | Premier Voyage 2 | 3.75% | 2 yr | $1,000,000 | 10% |
3-Year MYGA Rates
| Carrier | Product | AM Best | Rate | Term | Min Premium | Free Withdrawal |
|---|---|---|---|---|---|---|
| Knighthead Life | Staysail 3 (Simple Interest) SI | 5.60%Top Rate | 3 yr | $100,000 | 0% | |
| Axonic Insurance | Waypoint 3 MYGA | 5.45% | 3 yr | $100,000 | 10% | |
| Ibexis | MYGA Plus 3 (Simple Interest) SI | 5.40% | 3 yr | $100,000 | 10% | |
| Fidelity Security Life Insurance Company | TaxVantage® Multi-Year Guaranteed Annuity 3 | 5.25% | 3 yr | $2,500 | 0% | |
| Knighthead Life | Staysail 3 With Liquidity (Simple Interest) SI | 5.25% | 3 yr | $100,000 | 10% | |
| Midland National Life | MNL Guarantee Pro 3 | 5.05% | 3 yr | $100,000 | Interest Only | |
| Oceanview Life and Annuity | Harbourview 3 | 5.05% | 3 yr | $70,000 | 10% | |
| Athene IA | Athene Max Rate 3 | 5.00% | 3 yr | $100,000 | Interest Only |
4-Year MYGA Rates
| Carrier | Product | AM Best | Rate | Term | Min Premium | Free Withdrawal |
|---|---|---|---|---|---|---|
| Oceanview Life and Annuity | Harbourview 4 | 5.20%Top Rate | 4 yr | $70,000 | 10% | |
| Oxford Life Insurance Company | Multi-Select 4 | 5.10% | 4 yr | $20,000 | 10% | |
| Clear Spring Life | Preserve MYGA 4 | 5.05% | 4 yr | $100,000 | 10% | |
| Pacific Guardian Life | Diamond Head 4 | 5.00% | 4 yr | $10,000 | 10% | |
| GBU Life | Asset Guard Select 4 | 4.75% | 4 yr | $25,000 | 10% | |
| Mass Mutual | Premier Voyage 4 | 4.70% | 4 yr | $1,000,000 | 10% | |
| Corebridge Financial | Corebridge Pathway Choicesm Fixed 4 Annuity | 4.60% | 4 yr | $100,000 | 10% | |
| Guardian Insurance & Annuity Co. | Guardian Fixed Target Annuity 4 | 4.60% | 4 yr | $100,000 | 10% |
5-Year MYGA Rates
| Carrier | Product | AM Best | Rate | Term | Min Premium | Free Withdrawal |
|---|---|---|---|---|---|---|
| Knighthead Life | Staysail 5 (Simple Interest) SI | 6.30%Top Rate | 5 yr | $100,000 | 0% | |
| Ibexis | MYGA Plus 5 (Simple Interest) SI | 5.90% | 5 yr | $100,000 | 10% | |
| Knighthead Life | Staysail 5 With Liquidity (Simple Interest) SI | 5.75% | 5 yr | $100,000 | 10% | |
| Axonic Insurance | Waypoint 5 MYGA | 5.70% | 5 yr | $100,000 | 10% | |
| Fidelity Security Life Insurance Company | TaxVantage® Multi-Year Guaranteed Annuity 5 | 5.65% | 5 yr | $2,500 | 0% | |
| Liberty Bankers Life | Heritage Elite 5 | 5.40% | 5 yr | $10,000 | 0% | |
| Liberty Bankers Life | Heritage Premier 5 | 5.35% | 5 yr | $10,000 | Interest Only | |
| North American Company | NAC Guarantee Plus 5 | 5.35% | 5 yr | $100,000 | Interest Only |
6-Year MYGA Rates
| Carrier | Product | AM Best | Rate | Term | Min Premium | Free Withdrawal |
|---|---|---|---|---|---|---|
| Oxford Life Insurance Company | Multi-Select 6 | 5.55%Top Rate | 6 yr | $20,000 | 10% | |
| Oceanview Life and Annuity | Harbourview 6 | 5.50% | 6 yr | $70,000 | 10% | |
| Clear Spring Life | Preserve MYGA 6 | 5.25% | 6 yr | $100,000 | 10% | |
| Pacific Guardian Life | Diamond Head 6 | 5.20% | 6 yr | $10,000 | 10% | |
| Mass Mutual | Premier Voyage 6 | 5.05% | 6 yr | $1,000,000 | 10% | |
| Guardian Insurance & Annuity Co. | Guardian Fixed Target Annuity 6 | 4.80% | 6 yr | $100,000 | 10% | |
| American General Life Insurance Company | American Pathway VisionMYG 6 | 4.45% | 6 yr | $100,000 | 15% | |
| Corebridge Financial | American Pathway VisionMYG 6 | 4.45% | 6 yr | $100,000 | 15% |
7-Year MYGA Rates
| Carrier | Product | AM Best | Rate | Term | Min Premium | Free Withdrawal |
|---|---|---|---|---|---|---|
| Knighthead Life | Staysail 7 (Simple Interest) SI | 6.50%Top Rate | 7 yr | $100,000 | 0% | |
| Ibexis | MYGA Plus 7 (Simple Interest) SI | 6.15% | 7 yr | $100,000 | 10% | |
| Knighthead Life | Staysail 7 With Liquidity (Simple Interest) SI | 5.95% | 7 yr | $100,000 | 10% | |
| Fidelity Security Life Insurance Company | TaxVantage® Multi-Year Guaranteed Annuity 7 | 5.60% | 7 yr | $2,500 | 0% | |
| Aspida | Synergy Choice 7 | 5.50% | 7 yr | $100,000 | 0% | |
| Axonic Insurance | Waypoint 7 MYGA | 5.50% | 7 yr | $100,000 | 10% | |
| Liberty Bankers Life | Heritage Elite 7 | 5.45% | 7 yr | $10,000 | 0% | |
| Oxford Life Insurance Company | Multi-Select 7 | 5.45% | 7 yr | $20,000 | 10% |
8-Year MYGA Rates
| Carrier | Product | AM Best | Rate | Term | Min Premium | Free Withdrawal |
|---|---|---|---|---|---|---|
| Clear Spring Life | Preserve MYGA 8 | 5.25%Top Rate | 8 yr | $100,000 | 10% | |
| Oxford Life Insurance Company | Multi-Select 8 | 5.20% | 8 yr | $20,000 | 10% | |
| Pacific Guardian Life | Diamond Head 8 | 5.20% | 8 yr | $10,000 | 10% | |
| Guaranty Income Life | Guaranty Rate Lock 8 | 4.10% | 8 yr | $100,000 | 5% |
9-Year MYGA Rates
| Carrier | Product | AM Best | Rate | Term | Min Premium | Free Withdrawal |
|---|---|---|---|---|---|---|
| Liberty Bankers Life | Heritage Elite 9 | 5.50%Top Rate | 9 yr | $10,000 | 0% | |
| Liberty Bankers Life | Heritage Premier 9 | 5.45% | 9 yr | $10,000 | Interest Only | |
| Liberty Bankers Life | Heritage Premier Plus 9 | 5.35% | 9 yr | $10,000 | Interest Only | |
| Clear Spring Life | Preserve MYGA 9 | 5.25% | 9 yr | $100,000 | 10% | |
| Liberty Bankers Life | Heritage Classic 9 | 5.25% | 9 yr | $10,000 | 10% | |
| Pacific Guardian Life | Diamond Head 9 | 5.20% | 9 yr | $10,000 | 10% | |
| Securian Financial | SecureOption Choice 9 | 5.20% | 9 yr | $500,000 | 10% | |
| Oxford Life Insurance Company | Multi-Select 9 | 5.10% | 9 yr | $20,000 | 10% |
10-Year MYGA Rates
| Carrier | Product | AM Best | Rate | Term | Min Premium | Free Withdrawal |
|---|---|---|---|---|---|---|
| Oceanview Life and Annuity | Harbourview 10 | 5.65%Top Rate | 10 yr | $70,000 | 10% | |
| Axonic Insurance | Waypoint 10 MYGA | 5.50% | 10 yr | $100,000 | 10% | |
| Royal Neighbors of America | MYGA 10 Year | 5.50% | 10 yr | $100,000 | Interest Only | |
| Reliance Standard Life | Reliance Guarantee - 10 | 5.30% | 10 yr | $20,000 | 10% | |
| Clear Spring Life | Preserve MYGA 10 | 5.25% | 10 yr | $100,000 | 10% | |
| American National Insurance Company | Palladium MYG Annuity 10 | 5.20% | 10 yr | $250,000 | 10% | |
| Pacific Guardian Life | Diamond Head 10 | 5.20% | 10 yr | $10,000 | 10% | |
| Oxford Life Insurance Company | Multi-Select 10 | 5.15% | 10 yr | $20,000 | 10% |
Rates shown are for informational purposes only and subject to change without notice. Only carriers rated A− or better by AM Best are included. Products marked SI use simple interest — the effective compound yield is lower than the stated rate. Minimum premiums shown are for non-qualified (after-tax) funds. Always verify current rates with a licensed annuity broker before purchasing.
Key Takeaways
- Arizona’s 2.5% flat income tax is one of the lowest in the U.S. — annuity income faces minimal state tax at withdrawal
- The Arizona Life and Health Insurance Guaranty Fund protects up to $250,000 in annuity benefits per person, per insurer
- Most top-rate national MYGA carriers are available in Arizona — you have full access to the market
- Arizona law requires a minimum 10-day free-look period — you can return any annuity contract for a full refund within that window
- For balances over $250,000, spread across multiple A-rated carriers to maximize guaranty protection
Are Fixed Annuities a Good Investment in Arizona?
For Arizona savers aged 55–75 with $50,000–$500,000 to protect, fixed annuities — particularly MYGAs — offer a compelling combination of guaranteed growth, tax deferral, and state tax efficiency that few other products can match.
Consider a real scenario: Robert, age 63, lives in Scottsdale and has $150,000 in a CD maturing at 4.10%. He rolls it into a 5-year MYGA at 5.00%. At maturity, his account reaches approximately $191,442 — guaranteed, with no market risk. The gain of $41,442 is taxed as ordinary income, but only at Arizona’s 2.5% state rate — a state tax bill of roughly $1,036. Compare that to the same investment in a state with a 7% income tax, where the state bill would be $2,901. Arizona’s tax environment meaningfully improves after-tax returns.
Arizona also has no estate tax and no inheritance tax — so annuity death benefits pass to your beneficiaries without additional state-level taxation.
Arizona Guaranty Association: How Your Annuity Is Protected
The Arizona Life and Health Insurance Guaranty Fund steps in to protect policyholders if an insurance company becomes insolvent. This protection is separate from FDIC insurance (which covers bank accounts and CDs) and is specific to insurance products including annuities.
| Coverage Type | Arizona Protection Limit |
|---|---|
| Annuity present value | $250,000 per person, per insurer |
| Life insurance death benefit | $300,000 per person, per insurer |
| Health insurance benefits | $500,000 per person, per insurer |
| Multiple policies at same insurer | Combined subject to limits above |
If you have more than $250,000 to invest in annuities, a strategy called “carrier laddering” spreads your money across two or more A-rated insurers — each with separate $250,000 protection limits. For example, $500,000 split equally between two carriers gives you full guaranty coverage on the entire balance.
Arizona Life and Health Insurance Guaranty Fund
Website: azlifega.org
How Arizona Taxes Annuity Income
Arizona taxes annuity withdrawals as ordinary income, but the 2.5% flat rate (effective January 1, 2023) makes Arizona one of the most tax-efficient states for annuity owners in the country.
| Annuity Type | Arizona Tax Treatment | State Rate |
|---|---|---|
| Non-qualified (after-tax funds) | Only gains taxed; original principal excluded via exclusion ratio | 2.5% flat |
| Qualified (IRA / 401(k) rollover) | 100% of each distribution is taxable income | 2.5% flat |
| Roth IRA annuity | Qualified distributions are tax-free at state level | 0% |
| 1035 Exchange | No Arizona tax triggered on the exchange itself | N/A |
Arizona does not impose its own penalty for early annuity withdrawals — but the federal 10% early withdrawal penalty still applies if you withdraw before age 59½ (with certain exceptions). Arizona follows federal rules on the exclusion ratio, meaning you won’t be double-taxed on money you already paid income tax on before putting it into a non-qualified annuity.
Arizona Department of Insurance and Financial Institutions (DIFI)
The Arizona Department of Insurance and Financial Institutions (DIFI) licenses and regulates all insurance carriers and agents operating in Arizona. Before purchasing an annuity, you can verify a carrier’s license and an agent’s license through DIFI’s online lookup. If you have a complaint, DIFI is your first resource.
| Contact | Details |
|---|---|
| Agency | Arizona Department of Insurance and Financial Institutions (DIFI) |
| Main phone | (602) 364-2499 |
| Consumer hotline | 1-800-325-2548 |
| Website | difi.az.gov |
| License verification | difi.az.gov/consumers |
Tips for Buying an Annuity in Arizona
- Work with an independent broker: Independent brokers represent 20+ carriers and shop the market for you. Captive agents only sell one company’s products — often not the best rates.
- Verify carrier availability in Arizona: Not every carrier available nationally is licensed in AZ. Confirm via DIFI’s lookup before applying.
- Don’t exceed $250,000 per carrier: Spread larger portfolios across multiple A-rated insurers to maximize guaranty fund protection.
- Use the free-look period: Arizona mandates a minimum 10-day free-look period. Read the contract during this window — cancel for a full refund if anything doesn’t match what you were told.
- Consider the tax timing: Arizona’s 2.5% rate means withdrawals cost you far less in state taxes than in higher-tax states. If you’re comparing annuities across state lines, this matters.
Frequently Asked Questions
What is the best annuity rate available in Arizona today?
The best MYGA rates available to Arizona residents from A-rated carriers range from approximately 4.50%–5.50% depending on the term as of early 2026. See the live table above for current rates, updated daily from AnnuityRateWatch.
How much protection does the Arizona Guaranty Association provide?
The Arizona Life and Health Insurance Guaranty Fund protects up to $250,000 in annuity present value per person, per insurance company. If your annuity investment exceeds $250,000, consider spreading it across two or more A-rated carriers to maximize coverage.
Does Arizona tax annuity income?
Yes, but at just 2.5% — Arizona’s flat state income tax rate, one of the lowest in the country. For non-qualified (after-tax) annuities, only the gain is taxed; your original principal is excluded. For qualified annuities (IRA rollovers), 100% of each distribution is taxable at 2.5%.
Is there a free-look period for annuities purchased in Arizona?
Yes. Arizona requires a minimum 10-day free-look period for annuity contracts sold to individuals 65 and older, and at least 10 days for others. During this window, you can return the contract for a full refund of your premium. Many carriers voluntarily offer 20–30 days.
Who regulates annuities in Arizona?
The Arizona Department of Insurance and Financial Institutions (DIFI) licenses and regulates all insurance carriers and agents in Arizona. You can verify licenses and file complaints at difi.az.gov or by calling 1-800-325-2548.
Can I do a 1035 exchange into a new annuity in Arizona?
Yes. A 1035 exchange allows you to move funds from one annuity (or life insurance policy) to a new annuity without triggering immediate taxes. Arizona follows federal 1035 exchange rules and does not impose any state-level penalty on the exchange. See our complete 1035 exchange guide.
What happens to my annuity if the insurance company fails?
If a licensed Arizona insurance carrier becomes insolvent, the Arizona Life and Health Insurance Guaranty Fund covers up to $250,000 of your annuity’s present value. This protection is automatic — you don’t need to register or pay extra for it. Only buy from carriers licensed in Arizona to ensure this coverage applies.