Colorado offers something most states don’t: a meaningful tax deduction on annuity and pension income for retirees. Combined with a flat 4.4% income tax rate and strong access to A-rated carriers, Colorado is a genuinely favorable state for fixed annuity buyers — particularly those over age 55.
Below are today’s best MYGA rates available to Colorado residents from 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 | 3.45% | 2 yr | $1,000,000 | 10% |
3-Year MYGA Rates
| Carrier | Product | AM Best | Rate | Term | Min Premium | Free Withdrawal |
|---|---|---|---|---|---|---|
| Knighthead Life | Staysail 3 (Simple Interest) SI | 5.60%Top Rate | 3 yr | $100,000 | 0% | |
| Axonic Insurance | Waypoint 3 MYGA | 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% | |
| Ibexis | MYGA Plus 3 (Simple Interest) SI | 5.20% | 3 yr | $100,000 | 10% | |
| Athene IA | Athene Max Rate 3 | 4.90% | 3 yr | $100,000 | Interest Only | |
| Oceanview Life and Annuity | Harbourview 3 | 4.90% | 3 yr | $70,000 | 10% | |
| Midland National Life | MNL Guarantee Pro 3 | 4.85% | 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 | 4.90% | 4 yr | $100,000 | 10% | |
| Pacific Guardian Life | Diamond Head 4 | 4.80% | 4 yr | $10,000 | 10% | |
| GBU Life | Asset Guard Select 4 | 4.75% | 4 yr | $25,000 | 10% | |
| Guardian Insurance & Annuity Co. | Guardian Fixed Target Annuity 4 | 4.65% | 4 yr | $100,000 | 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% |
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 | 5.75% | 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 | 5.65% | 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 | |
| Oxford Life Insurance Company | Multi-Select 5 | 5.20% | 5 yr | $20,000 | 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% | |
| Oceanview Life and Annuity | Harbourview 6 | 5.50% | 6 yr | $70,000 | 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 | 4.80% | 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 | 4.30% | 6 yr | $100,000 | 15% | |
| Corebridge Financial | American Pathway VisionMYG 6 | 4.30% | 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 | 5.95% | 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% | |
| 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 |
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% | |
| Securian Financial | SecureOption Choice 9 | 5.20% | 9 yr | $500,000 | 10% | |
| 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% | |
| Pacific Guardian Life | Diamond Head 9 | 5.00% | 9 yr | $10,000 | 10% |
10-Year MYGA Rates
| Carrier | Product | AM Best | Rate | Term | Min Premium | Free Withdrawal |
|---|---|---|---|---|---|---|
| Oceanview Life and Annuity | Harbourview 10 | 5.55%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 | 5.30% | 10 yr | $100,000 | Interest Only | |
| 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% |
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
- Colorado retirees age 55–64 can exclude up to $20,000 of annuity/pension income from state taxes annually; age 65+ can exclude up to $24,000
- Colorado’s flat 4.4% state income tax rate applies to taxable annuity withdrawals above the exclusion
- The Colorado Life and Health Insurance Guaranty Association protects up to $250,000 per person, per insurer
- Colorado requires a 10-day free-look period for annuity buyers; 20 days for buyers over age 65
- Most top-rate national MYGA carriers are available in Colorado — Denver, Colorado Springs, and Fort Collins all have active independent broker markets
Are Fixed Annuities a Good Investment in Colorado?
Colorado’s retirement income exclusion is one of the most underused tax benefits in the state. If you’re 65 or older, you can deduct up to $24,000 of qualified annuity and pension income from your Colorado taxable income each year. For a married couple where both spouses receive annuity income, that’s potentially $48,000 per year shielded from Colorado state tax entirely.
Here’s a real example: Linda, age 67, lives in Denver and withdraws $30,000 from a non-qualified MYGA. The gain portion of her withdrawal is $18,000. She applies Colorado’s $24,000 age-65 exclusion — her entire $18,000 gain falls within that limit, so she owes zero Colorado state income tax on the withdrawal. She pays only federal taxes. That’s a significant advantage compared to states with no retirement income exclusion.
Colorado has no estate tax and no inheritance tax — annuity death benefits pass to beneficiaries without state-level estate taxation, which is increasingly rare among states with income taxes.
Colorado Guaranty Association: How Your Annuity Is Protected
The Colorado Life and Health Insurance Guaranty Association (CLHIGA) protects policyholders if a licensed Colorado insurance carrier becomes insolvent. This is not FDIC insurance — it’s a separate, state-mandated backstop specific to insurance products including annuities.
| Coverage Type | Colorado 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, same insurer | Combined subject to per-insurer limits |
If you’re investing more than $250,000, split between two or more A-rated carriers — each holding is protected separately up to the $250,000 limit. This “carrier laddering” strategy is standard practice for larger annuity portfolios.
Colorado Life and Health Insurance Guaranty Association (CLHIGA)
Website: clhiga.com
How Colorado Taxes Annuity Income
Colorado has a flat 4.4% income tax rate and follows federal tax treatment for annuities — with one important enhancement: a retirement income subtraction for residents aged 55 and older that can dramatically reduce state taxes on annuity income.
| Situation | Colorado Tax Treatment | State Rate |
|---|---|---|
| Non-qualified annuity, age under 55 | Gain portion taxed; principal excluded via exclusion ratio | 4.4% flat |
| Retirement income, age 55–64 | Up to $20,000 annual exclusion on pension/annuity income | 4.4% on excess |
| Retirement income, age 65+ | Up to $24,000 annual exclusion on pension/annuity income | 4.4% on excess |
| Qualified annuity (IRA / 401(k) rollover) | 100% of distributions taxable (exclusion applied after) | 4.4% flat |
| 1035 Exchange | No Colorado tax triggered on the exchange itself | N/A |
The retirement income subtraction applies per person — a married couple filing jointly each gets their own exclusion, potentially sheltering $40,000–$48,000 combined from Colorado state tax annually. The exclusion covers Social Security, pension income, and annuity distributions, which makes coordinating your income streams at retirement especially valuable in Colorado.
Colorado Division of Insurance
The Colorado Division of Insurance licenses and regulates all insurance companies and agents operating in Colorado. Use their online tools to verify a carrier’s license, check an agent’s credentials, or file a complaint.
| Contact | Details |
|---|---|
| Agency | Colorado Division of Insurance |
| Phone | (303) 894-7499 |
| Toll-free | 1-800-930-3745 |
| Website | doi.colorado.gov |
| File a complaint | doi.colorado.gov/consumers |
Tips for Buying an Annuity in Colorado
- Time withdrawals to maximize the exclusion: If you’re over 55, plan annual annuity withdrawals to stay within the $20,000–$24,000 exclusion limit and minimize Colorado state taxes.
- Use an independent broker: Colorado’s independent broker market is competitive — Denver and Fort Collins especially. An independent broker shops 20+ carriers; a captive agent sells one company’s products.
- Use the free-look window fully: Colorado gives buyers over 65 a full 20 days to review and cancel. Read the contract cover-to-cover before the window closes.
- Keep per-carrier balances under $250,000: For larger portfolios, spread across multiple A-rated insurers for full guaranty coverage.
- Verify the carrier is licensed in Colorado: Check at doi.colorado.gov before submitting any application or funds.
Frequently Asked Questions
What is the best annuity rate available in Colorado today?
The best MYGA rates available to Colorado residents from A-rated carriers typically range from 4.50%–5.50% depending on the term, as of early 2026. See the live table above for current figures updated daily from AnnuityRateWatch.
Does Colorado tax annuity income?
Yes, at a flat 4.4% rate — but Colorado offers meaningful retirement income exclusions. Residents age 55–64 can exclude up to $20,000 in annuity and pension income annually; those 65 and older can exclude up to $24,000. Income above the exclusion is taxed at 4.4%.
How much does the Colorado Guaranty Association protect?
The Colorado Life and Health Insurance Guaranty Association protects up to $250,000 in annuity present value per person, per insurance company. For balances over $250,000, spread your investment across multiple A-rated carriers.
Is there a free-look period for annuities in Colorado?
Yes. Colorado requires a 10-day free-look period for most annuity buyers, and a 20-day free-look period for buyers over age 65. During this window, you can return the contract for a full refund of your premium with no surrender charges.
Who regulates annuities in Colorado?
The Colorado Division of Insurance regulates all insurance carriers and agents in Colorado. Verify licenses and file complaints at doi.colorado.gov or call (303) 894-7499.
Can Colorado residents do a 1035 exchange?
Yes. A 1035 exchange lets you move funds from one annuity to another without triggering immediate taxes. Colorado follows federal 1035 exchange rules and imposes no state-level penalty on the exchange. See our 1035 exchange guide for details.