California is the largest annuity market in the country by population — but it comes with the nation’s highest state income tax rates and a unique guaranty association rule that covers 80% of your annuity value rather than a fixed dollar cap. Understanding these details before you buy can save you thousands.
Below are today’s best MYGA rates available to California residents, filtered to A-rated carriers only, 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% | |
| Mass Mutual | Premier Voyage 2 | 3.45% | 2 yr | $1,000,000 | 10% |
3-Year MYGA Rates
| Carrier | Product | AM Best | Rate | Term | Min Premium | Free Withdrawal |
|---|---|---|---|---|---|---|
| Knighthead Life | Staysail 3 CA (Simple Interest) SI | 5.50%Top Rate | 3 yr | $100,000 | 0% | |
| Axonic Insurance | Waypoint 3 MYGA | 5.40% | 3 yr | $100,000 | 10% | |
| Knighthead Life | Staysail 3 CA With Liquidity (Simple Interest) SI | 5.15% | 3 yr | $100,000 | 10% | |
| Ibexis | MYGA Plus 3 (Simple Interest) CA SI | 5.10% | 3 yr | $100,000 | 10% | |
| Athene IA | Athene Max Rate 3 (state specific) | 4.90% | 3 yr | $100,000 | Interest Only | |
| Midland National Life | MNL Guarantee Pro 3 | 4.85% | 3 yr | $100,000 | Interest Only | |
| Symetra Life Insurance Company | Symetra Select Max 3 | 4.85% | 3 yr | $250,000 | Interest Only | |
| North American Company | NAC Guarantee Plus 3 | 4.80% | 3 yr | $100,000 | Interest Only |
4-Year MYGA Rates
| Carrier | Product | AM Best | Rate | Term | Min Premium | Free Withdrawal |
|---|---|---|---|---|---|---|
| Oxford Life Insurance Company | Multi-Select 4 | 5.10%Top Rate | 4 yr | $20,000 | 10% | |
| Clear Spring Life | Preserve MYGA 4 | 4.90% | 4 yr | $100,000 | 10% | |
| Pacific Guardian Life | Diamond Head 4 | 4.80% | 4 yr | $10,000 | 10% | |
| S.USA Life Insurance Company, Inc. | Select Choice® Plus 1 (4) Year Plan Base Policy MVA | 4.55% | 4 yr | $100,000 | 0% | |
| Corebridge Financial | Corebridge Pathway Choicesm Fixed 4 Annuity GROP | 4.50% | 4 yr | $100,000 | 10% | |
| Guaranty Income Life | Guaranty Rate Lock 4 | 4.50% | 4 yr | $100,000 | 5% | |
| S.USA Life Insurance Company, Inc. | Select Choice® Plus 3 (4) Year Plan (Base + PFW) MVA | 4.50% | 4 yr | $100,000 | 10% | |
| S.USA Life Insurance Company, Inc. | Select Choice® Plus 2 (4) Year Plan (Base + ROP) MVA | 4.45% | 4 yr | $100,000 | 0% |
5-Year MYGA Rates
| Carrier | Product | AM Best | Rate | Term | Min Premium | Free Withdrawal |
|---|---|---|---|---|---|---|
| Knighthead Life | Staysail 5 CA (Simple Interest) SI | 6.20%Top Rate | 5 yr | $100,000 | 0% | |
| Axonic Insurance | Waypoint 5 MYGA | 5.65% | 5 yr | $100,000 | 10% | |
| Ibexis | MYGA Plus 5 (Simple Interest) CA SI | 5.65% | 5 yr | $100,000 | 10% | |
| Knighthead Life | Staysail 5 CA With Liquidity | 5.65% | 5 yr | $100,000 | 10% | |
| 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 | |
| Oxford Life Insurance Company | Multi-Select 5 | 5.20% | 5 yr | $20,000 | 10% | |
| American National Insurance Company | Palladium MYG Annuity 5 | 5.15% | 5 yr | $250,000 | 10% |
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% | |
| Clear Spring Life | Preserve MYGA 6 | 5.10% | 6 yr | $100,000 | 10% | |
| Pacific Guardian Life | Diamond Head 6 | 5.00% | 6 yr | $10,000 | 10% | |
| Guardian Insurance & Annuity Co. | Guardian Fixed Target Annuity 6 | 4.70% | 6 yr | $100,000 | 10% | |
| Mass Mutual | Premier Voyage 6 | 4.70% | 6 yr | $1,000,000 | 10% | |
| American General Life Insurance Company | American Pathway VisionMYG 6 | 4.15% | 6 yr | $100,000 | 15% | |
| Corebridge Financial | American Pathway VisionMYG 6 | 4.15% | 6 yr | $100,000 | 15% | |
| Guaranty Income Life | Guaranty Rate Lock 6 | 4.10% | 6 yr | $100,000 | 5% |
7-Year MYGA Rates
| Carrier | Product | AM Best | Rate | Term | Min Premium | Free Withdrawal |
|---|---|---|---|---|---|---|
| Knighthead Life | Staysail 7 CA (Simple Interest) SI | 6.40%Top Rate | 7 yr | $100,000 | 0% | |
| Ibexis | MYGA Plus 7 (Simple Interest) CA SI | 5.85% | 7 yr | $100,000 | 10% | |
| Knighthead Life | Staysail 7 CA with Liquidity (Simple Interest) SI | 5.85% | 7 yr | $100,000 | 10% | |
| 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% | |
| Liberty Bankers Life | Heritage Premier 7 | 5.40% | 7 yr | $10,000 | Interest Only | |
| Aspida | Synergy Choice 7 | 5.30% | 7 yr | $100,000 | 0% |
8-Year MYGA Rates
| Carrier | Product | AM Best | Rate | Term | Min Premium | Free Withdrawal |
|---|---|---|---|---|---|---|
| Oxford Life Insurance Company | Multi-Select 8 | 5.20%Top Rate | 8 yr | $20,000 | 10% | |
| Clear Spring Life | Preserve MYGA 8 | 5.10% | 8 yr | $100,000 | 10% | |
| Pacific Guardian Life | Diamond Head 8 | 5.00% | 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 | |
| Liberty Bankers Life | Heritage Classic 9 | 5.25% | 9 yr | $10,000 | 10% | |
| Royal Neighbors of America | MYGA 9 Year CA | 5.20% | 9 yr | $100,000 | Interest Only | |
| Clear Spring Life | Preserve MYGA 9 | 5.10% | 9 yr | $100,000 | 10% | |
| Oxford Life Insurance Company | Multi-Select 9 | 5.10% | 9 yr | $20,000 | 10% | |
| Securian Financial | SecureOption Choice 9 CA | 5.10% | 9 yr | $500,000 | 10% |
10-Year MYGA Rates
| Carrier | Product | AM Best | Rate | Term | Min Premium | Free Withdrawal |
|---|---|---|---|---|---|---|
| Axonic Insurance | Waypoint 10 MYGA | 5.50%Top Rate | 10 yr | $100,000 | 10% | |
| Oxford Life Insurance Company | Multi-Select 10 | 5.15% | 10 yr | $20,000 | 10% | |
| American National Insurance Company | Palladium MYG Annuity 10 | 5.10% | 10 yr | $250,000 | 10% | |
| Clear Spring Life | Preserve MYGA 10 | 5.10% | 10 yr | $100,000 | 10% | |
| Reliance Standard Life | Reliance Guarantee - 10 | 5.10% | 10 yr | $20,000 | 10% | |
| Pacific Guardian Life | Diamond Head 10 | 5.00% | 10 yr | $10,000 | 10% | |
| American General Life Insurance Company | American Pathway VisionMYG 10 | 4.50% | 10 yr | $100,000 | 15% | |
| Corebridge Financial | American Pathway VisionMYG 10 | 4.50% | 10 yr | $100,000 | 15% |
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
- California’s top income tax rate is 13.3% — the highest in the U.S. — making tax-deferred annuity growth especially valuable for high earners
- California’s guaranty association covers 80% of present value up to $250,000 — slightly less than the full-dollar protection most other states offer
- The California Department of Insurance (CDI) provides one of the most robust consumer protection frameworks in the country
- California law requires a 30-day free-look period for buyers age 60 and older — the most generous in the nation
- Despite the higher tax rates, annuity deferral still provides a meaningful advantage over taxable alternatives for California residents
Are Fixed Annuities a Good Investment in California?
In a high-tax state like California, tax deferral is one of the most powerful features an annuity offers. A MYGA growing at 5.00% compounds without annual tax drag — you don’t pay California’s 9.3%–13.3% income tax on gains until you withdraw. In a taxable CD or bond, you’d owe state tax on interest every year.
Consider this: Patricia, age 62, lives in San Diego with $150,000 to invest. In a 5-year CD at 4.50%, her annual interest of $6,750 would face California’s 9.3% state rate — roughly $628 in annual state tax, reducing her effective yield. In a 5-year MYGA at 5.10%, she pays nothing until withdrawal, and the full $150,000 compounds to approximately $192,140. The deferral advantage compounds over the life of the contract.
For high earners in the 12.3% or 13.3% bracket, the deferral benefit is even more pronounced — every year you delay taxation is a year that money stays working for you instead of going to Sacramento.
California Guaranty Association: How Your Annuity Is Protected
The California Life and Health Insurance Guarantee Association (CLHIGA) protects California policyholders if a licensed insurer becomes insolvent. California’s coverage rule is different from most states: instead of a fixed dollar cap, California covers 80% of the present value of your annuity, up to a maximum of $250,000.
| Coverage Type | California Protection Limit |
|---|---|
| Annuity present value | 80% of value, up to $250,000 maximum |
| Life insurance death benefit | 80% of benefit, up to $300,000 maximum |
| Life insurance cash value | 80% of value, up to $100,000 maximum |
| Multiple policies at same insurer | Combined subject to limits above |
What the 80% rule means in practice: on a $250,000 annuity, you’d be covered for up to $200,000 — not $250,000. On a $312,500 annuity, you’d hit the $250,000 maximum. This is a meaningful difference from states that offer full-dollar protection up to their cap. For larger annuities, California residents benefit even more from splitting across multiple carriers.
California Life and Health Insurance Guarantee Association
Website: califega.org
How California Taxes Annuity Income
California taxes annuity withdrawals as ordinary income at the state’s standard income tax rates — the highest in the country, ranging up to 13.3%. California also imposes its own 2.5% early withdrawal penalty (in addition to the federal 10% penalty) for withdrawals taken before age 59½.
| Annuity Type | California Tax Treatment | State Rate |
|---|---|---|
| Non-qualified (after-tax funds) | Only gains taxed; principal excluded via exclusion ratio | 1% – 13.3% |
| Qualified (IRA / 401(k) rollover) | 100% of each distribution is taxable state income | 1% – 13.3% |
| Roth IRA annuity | Qualified distributions are federal tax-free; California taxes the gains | 1% – 13.3% |
| Early withdrawal (before 59½) | Federal 10% penalty + California 2.5% state penalty | +2.5% |
Important: California does not conform to federal Roth IRA tax-free treatment on earnings in some cases. California taxes Roth IRA annuity gains at the state level, even if they’re federally tax-free. Consult a California tax advisor before drawing from a Roth IRA annuity.
California also has no estate tax at the state level, though federal estate taxes apply for large estates.
California Department of Insurance (CDI)
The California Department of Insurance (CDI) is one of the most active state insurance regulators in the country. CDI licenses carriers and agents, handles consumer complaints, and has authority to investigate and penalize carriers for unfair practices. Before buying, verify your carrier and agent are licensed through CDI’s online lookup.
| Contact | Details |
|---|---|
| Agency | California Department of Insurance (CDI) |
| Consumer hotline | 1-800-927-4357 |
| Website | insurance.ca.gov |
| License verification | CDI license lookup |
Tips for Buying an Annuity in California
- Use the 30-day free-look period (age 60+): California gives buyers age 60 and older a full 30 days to review the contract and cancel for a full refund. This is the longest free-look period in the nation — use it.
- Understand the 80% guaranty rule: California’s guaranty coverage is 80% of present value, not the full amount. On a $300,000 annuity, that’s $240,000 protected. Factor this into how you size each carrier position.
- Avoid the California early withdrawal penalty: California adds a 2.5% state penalty on top of the federal 10% for withdrawals before 59½. Structure your annuity so you won’t need the money before then.
- Work with an independent broker: California has a large broker market — independent agents can compare 20+ carriers to find the best rate for your term and risk tolerance.
- Tax deferral is especially valuable here: With California’s high income tax rates, every year of deferral saves you more than it would in a low-tax state. Maximize the deferral period if you don’t need income immediately.
Frequently Asked Questions
Does California tax annuity income?
Yes. California taxes annuity withdrawals as ordinary income at rates from 1% to 13.3%, the highest state income tax rates in the U.S. California also imposes a 2.5% early withdrawal penalty (on top of the federal 10%) for withdrawals before age 59½.
What is the free-look period for annuities in California?
California requires a 30-day free-look period for buyers age 60 and older — the most generous in the nation. Buyers under 60 get at least 10 days. During this window, you can cancel for a full refund of your premium, no questions asked.
How does California’s guaranty association coverage work?
California covers 80% of your annuity’s present value up to a maximum of $250,000. This means a $250,000 annuity would be protected for up to $200,000 — not the full $250,000. This 80% rule is unique to California and is an important reason to spread large annuity investments across multiple A-rated carriers.
Does California tax Roth IRA annuity distributions?
Potentially yes. California does not fully conform to federal Roth IRA tax-free treatment in all cases. While qualified Roth distributions are federal tax-free, California may tax the earnings component. Consult a California CPA or tax advisor before drawing from a Roth IRA annuity.
What is the best annuity rate in California today?
The best MYGA rates available to California residents from A-rated carriers range from approximately 4.50%–5.50% depending on the term as of early 2026. See the live rate table above for current figures updated daily.
Who regulates annuities in California?
The California Department of Insurance (CDI) licenses and regulates all carriers and agents in California. Verify licenses and file complaints at insurance.ca.gov or by calling 1-800-927-4357.
Should I still buy an annuity in California given the high tax rates?
Yes — for many California residents, the tax deferral advantage of a MYGA or fixed annuity outweighs the high tax rate at withdrawal. You avoid annual taxation on growth during the accumulation phase. In a taxable CD, you’d owe 9.3%–13.3% on interest every year. The math still works in favor of annuities, especially for buyers 10+ years from needing income.