Maryland has one of the most complex income tax structures in the country — a state income tax plus a separate county income tax that can push effective rates well above 8% in high-income jurisdictions like Montgomery County and Howard County. For annuity buyers in the Baltimore metro, the DC suburbs, and the Eastern Shore, tax-deferred growth is especially valuable. Before comparing rates, it helps to understand how annuities work and why the tax structure here makes the deferral benefit larger than most Maryland residents expect.
Below are today’s best MYGA rates available to Maryland 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 (state specific) | 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
- Maryland has a state income tax up to 5.75% plus a county income tax up to 3.2% — combined effective rates of 8%–8.95% in high-income counties are common
- Maryland residents age 65+ may qualify for a pension exclusion up to $36,200 per person that can reduce state and county taxes on qualifying retirement income
- The Maryland Life and Health Insurance Guaranty Corporation protects up to $300,000 in annuity present value per person, per insurer
- Maryland law requires a minimum 10-day free-look period for annuity contracts
- Maryland has a state estate tax with a $5 million exemption — lower than the federal threshold, requiring planning for larger estates
Are Fixed Annuities a Good Investment in Maryland?
Maryland’s combined state-plus-county tax structure makes the deferral benefit of an annuity surprisingly powerful. In Montgomery County — one of the wealthiest counties in the country — the combined top rate is 8.95% (5.75% state + 3.2% county). On a $200,000 MYGA earning 5.00%, the first-year interest is $10,000. In a taxable CD, a Montgomery County resident at the top bracket owes $895 in combined state and county taxes on that $10,000 each year. Inside a MYGA, $895 stays compounding. Over a five-year term, that is approximately $4,475 in deferred combined taxes — money that stays working inside the contract.
Here is a concrete example: Helen, age 67, lives in Bethesda and draws $50,000 per year from her IRA-funded MYGA. She qualifies for Maryland’s pension exclusion and reduces her taxable Maryland income by $36,200, leaving only $13,800 subject to Maryland income tax. At the combined state and county rate, she owes significantly less than the couple down the street drawing the same amount from a taxable brokerage account. Maryland’s $5 million estate tax exemption also affects planning — Helen’s estate, which includes a paid-off home and retirement accounts, needs a review to determine if beneficiary designations on the annuity are doing enough work.
Maryland Guaranty Corporation: How Your Annuity Is Protected
The Maryland Life and Health Insurance Guaranty Corporation (MLHIGC) protects Maryland policyholders if a licensed insurer becomes insolvent. At $300,000, Maryland’s annuity coverage is above the national $250,000 standard. Coverage is automatic — no enrollment required.
| Coverage Type | Maryland Protection Limit |
|---|---|
| Annuity present value | $300,000 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 $300,000, split across two or more A-rated carriers.
Maryland Life and Health Insurance Guaranty Corporation
Website: marylandlifega.org
How Maryland Taxes Annuity Income
Maryland taxes annuity income at both the state level (graduated 2%–5.75%) and the county level (2.25%–3.2% depending on jurisdiction). The combined rate for residents in high-income counties can reach 8.95%. Maryland residents age 65 and older may qualify for a pension exclusion of up to $36,200 per person annually, which can significantly reduce the effective state and county tax rate on qualifying retirement income including annuity distributions.
| Maryland Taxable Income (Single) | State Rate | County Rate (range) |
|---|---|---|
| $0 – $1,000 | 2.0% | 2.25%–3.2% |
| $1,001 – $2,000 | 3.0% | |
| $2,001 – $3,000 | 4.0% | |
| $3,001 – $100,000 | 4.75% | |
| $100,001 – $125,000 | 5.0% | |
| $125,001 – $150,000 | 5.25% | |
| $150,001 – $250,000 | 5.5% | |
| Over $250,000 | 5.75% |
Maryland estate tax: Maryland has a state estate tax with a $5 million exemption — lower than the federal $13.61 million threshold. Rates range from 0.8% to 16% on amounts above $5 million. For Maryland residents with a paid-off home, retirement accounts, and annuity assets, the $5 million threshold can be approached more easily than it sounds, particularly in high-value real estate markets like Montgomery County.
Maryland Insurance Administration
The Maryland Insurance Administration (MIA) licenses and regulates all insurance carriers and agents operating in Maryland. Verify both the carrier and your agent before purchasing an annuity.
| Contact | Details |
|---|---|
| Agency | Maryland Insurance Administration (MIA) |
| Consumer services | 410-468-2000 |
| Toll-free | 1-800-492-6116 |
| Website | insurance.maryland.gov |
| License verification | Maryland license lookup |
Tips for Buying an Annuity in Maryland
- Your county matters as much as the state rate: Maryland’s combined state-plus-county rate can reach 8.95% in Montgomery, Howard, and Prince George’s counties. Deferring income inside a MYGA is worth more here than in most states. Factor your combined rate — not just the state rate — into your after-tax return calculation.
- Use the $36,200 pension exclusion at 65: Maryland residents age 65 and older can exclude up to $36,200 per person of retirement income — including qualifying annuity distributions — from state and county income taxes each year. A married couple can potentially exclude $72,400 combined.
- Plan around the $5M estate tax threshold: Maryland’s $5 million estate tax exemption is lower than the federal threshold. If your estate approaches $5 million — home, retirement accounts, annuity, and other assets combined — consult a Maryland estate planning attorney. Annuity death benefits paid to named beneficiaries bypass probate.
- $300,000 guaranty limit gives extra room: Maryland’s above-average limit means you can hold slightly more with a single A-rated carrier. Still split above $300,000.
- Work with an independent broker: The Baltimore and DC suburban markets have highly competitive independent broker communities serving high-income retirees. Independent brokers compare 20+ carriers for your best available rate.
- Use the free-look period: Maryland requires at least 10 days to review and cancel any annuity contract for a full premium refund.
Frequently Asked Questions
Does Maryland tax annuity income?
Yes, at both the state level (2%–5.75%) and the county level (2.25%–3.2%). Combined effective rates for many Maryland residents reach 7%–8.95%. Residents age 65 and older may qualify for a pension exclusion of up to $36,200 per person annually, significantly reducing the effective rate on qualifying annuity income.
What is the best annuity rate in Maryland today?
The best MYGA rates available to Maryland 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 Maryland Guaranty Corporation cover?
The Maryland Life and Health Insurance Guaranty Corporation protects up to $300,000 in annuity present value per person, per insurance company — above the $250,000 standard in most states. For investments over $300,000, spread across multiple A-rated carriers.
What is Maryland’s pension exclusion for seniors?
Maryland residents age 65 and older can exclude up to $36,200 per person of qualifying retirement income — including certain annuity distributions — from Maryland income tax each year. Married couples may each claim the exclusion. Qualifying income types and income limits apply, so consult a Maryland tax professional for your specific situation.
Does Maryland have an estate tax?
Yes. Maryland has a state estate tax with a $5 million exemption — significantly lower than the federal $13.61 million threshold. Rates range from 0.8% to 16% on amounts above $5 million. Maryland residents with valuable real estate, retirement accounts, and annuity assets may be closer to this threshold than they expect.
What is the free-look period for annuities in Maryland?
Maryland requires a minimum 10-day free-look period for annuity contracts. You can return the contract for a full refund of premium within that window.
Who regulates annuities in Maryland?
The Maryland Insurance Administration (MIA) licenses and regulates all carriers and agents. Verify licenses at insurance.maryland.gov or call 1-800-492-6116.