Indiana offers one of the lowest flat income tax rates in the Midwest — and it keeps declining. At 3.05% and heading lower, Indiana residents pay less state tax on annuity withdrawals than almost any other state with an income tax. Indianapolis, Fort Wayne, Evansville, and South Bend are home to a growing retiree population that benefits from a straightforward, low-tax environment. Understanding how annuities work is a smart first step before comparing today’s rates.
Below are today’s best MYGA rates available to Indiana 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% | |
| 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
- Indiana has a flat 3.05% state income tax rate — one of the lowest in any state with an income tax — and the rate is legally scheduled to continue declining
- Indiana also has county income taxes (typically 0.5%–2.9%), making the effective combined rate approximately 3.5%–6.0% depending on where you live
- The Indiana Life and Health Insurance Guaranty Association protects up to $250,000 in annuity present value per person, per insurer
- Indiana law requires a minimum 10-day free-look period for annuity contracts
- Indiana has no state estate tax — it repealed its inheritance tax in 2013
Are Fixed Annuities a Good Investment in Indiana?
At 3.05%, Indiana’s flat state income tax is low enough that the state tax burden on annuity withdrawals is modest — but the deferral benefit still adds up. On a $200,000 MYGA earning 5.00%, the first-year interest is $10,000. In a taxable CD, an Indiana resident owes $305 in state taxes on that $10,000 each year. Inside a MYGA, that $305 stays compounding. Over a 5-year term, the cumulative deferred state tax on $50,000 in interest is approximately $1,525 — real money that stays working inside your contract rather than going to Indianapolis each April.
Here is a concrete example: Tom, age 63, lives in Indianapolis with $175,000 to protect. He places it in a 5-year MYGA at 5.00%. At maturity, his account grows to approximately $223,387 — a $48,387 gain. If he had used a taxable CD at the same rate, he would have paid roughly $295 per year in Indiana state taxes on the interest as it was earned. The MYGA deferred all of that, plus county income tax on top of it.
Indiana has no estate tax, making it a clean state for wealth transfer. Annuity beneficiary designations bypass probate and pass free of any Indiana estate-level taxation.
Indiana Guaranty Association: How Your Annuity Is Protected
The Indiana Life and Health Insurance Guaranty Association (ILHIGA) protects Indiana policyholders if a licensed insurer becomes insolvent. Coverage is automatic — no enrollment required.
| Coverage Type | Indiana Protection Limit |
|---|---|
| Annuity present value | $250,000 per person, per insurer |
| Life insurance death benefit | $300,000 per person, per insurer |
| Life insurance cash value | $100,000 per person, per insurer |
| Multiple policies at same insurer | Combined subject to limits above |
For annuity portfolios over $250,000, split across two or more A-rated carriers to keep each position within coverage limits.
Indiana Life and Health Insurance Guaranty Association
Website: indianalifega.org
How Indiana Taxes Annuity Income
Indiana taxes annuity income as ordinary income at a flat 3.05% state rate. There are no graduated brackets — every dollar of taxable annuity income faces the same rate. County income taxes (0.5%–2.9% depending on county) also apply, so the effective combined rate for most residents is 3.5%–6.0%. Indiana does not offer a blanket retirement income exemption.
| Income | Indiana State Rate | County Rate (typical) | Combined (approx) |
|---|---|---|---|
| All taxable income | 3.05% | 0.5%–2.9% | ~3.5%–6.0% |
Indiana has no estate tax and no inheritance tax (repealed 2013). The county income tax system means your effective rate depends on where you live — Marion County (Indianapolis) residents face a higher combined rate than residents in lower-rate rural counties.
Indiana Department of Insurance
The Indiana Department of Insurance (IDOI) licenses and regulates all insurance carriers and agents operating in Indiana. Verify both the carrier and your agent through IDOI before purchasing an annuity.
| Contact | Details |
|---|---|
| Agency | Indiana Department of Insurance (IDOI) |
| Consumer services | 317-232-2385 |
| Toll-free | 1-800-622-4461 |
| Website | in.gov/idoi |
| License verification | Indiana license lookup |
Tips for Buying an Annuity in Indiana
- Factor in your county tax rate: Indiana’s state rate is 3.05%, but county taxes add 0.5%–2.9% on top. Your actual combined rate on annuity income depends on your county. Marion County (Indianapolis) residents have one of the higher county rates in the state.
- The declining rate is in your favor: Indiana’s flat tax has been declining for years and is scheduled to continue lower. Income deferred today in a MYGA may face a slightly lower combined rate when you eventually withdraw.
- No estate tax simplifies beneficiary planning: Indiana has no estate or inheritance tax. Name beneficiaries on your contracts to bypass probate and pass death benefits cleanly to heirs.
- Don’t exceed $250,000 per carrier: For portfolios over $250,000, use two or more A-rated carriers to stay within guaranty protection limits.
- Work with an independent broker: Indianapolis and Fort Wayne have active independent broker markets. Independent brokers compare 20+ carriers for your best available rate.
- Use the free-look period: Indiana requires at least 10 days to review and cancel any annuity contract for a full premium refund.
Frequently Asked Questions
Does Indiana tax annuity income?
Yes, at a flat 3.05% state rate plus county income taxes (typically 0.5%–2.9%). The combined effective rate for most Indiana residents is approximately 3.5%–6.0% depending on county. Indiana does not offer a blanket retirement income exemption.
What is the best annuity rate in Indiana today?
The best MYGA rates available to Indiana 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.
How much does the Indiana Guaranty Association cover?
The Indiana Life and Health Insurance Guaranty Association protects up to $250,000 in annuity present value per person, per insurance company. For investments over $250,000, spread across multiple A-rated carriers.
Does Indiana have an estate or inheritance tax?
No. Indiana repealed its inheritance tax in 2013 and has no state estate tax. Annuity death benefits paid to named beneficiaries pass free of Indiana-level estate taxation and bypass probate.
What is the free-look period for annuities in Indiana?
Indiana requires a minimum 10-day free-look period. You can return the contract for a full refund of premium within that window.
Who regulates annuities in Indiana?
The Indiana Department of Insurance (IDOI) licenses and regulates all carriers and agents. Verify licenses at in.gov/idoi or call 1-800-622-4461.
How do Indiana county income taxes affect my annuity?
Indiana counties levy their own income taxes (typically 0.5%–2.9%) on top of the 3.05% state rate. Both apply to annuity income. Marion County (Indianapolis) residents face a higher combined rate than residents in lower-rate rural counties — factor your county rate into your after-tax return calculation.