Massachusetts has a flat 5% income tax rate and one of the more straightforward tax treatments for annuities in the Northeast — what you put in after-tax, you get back tax-free; only the gains are taxed. Combined with strong carrier availability and an active independent broker market in Boston, Worcester, and Springfield, Massachusetts residents have good access to competitive MYGA rates.
Below are today’s best MYGA rates available to Massachusetts 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 |
|---|---|---|---|---|---|---|
| Axonic Insurance | Waypoint 3 MYGA | 5.40%Top Rate | 3 yr | $100,000 | 10% | |
| Fidelity Security Life Insurance Company | TaxVantage® Multi-Year Guaranteed Annuity 3 | 5.25% | 3 yr | $2,500 | 0% | |
| 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 | |
| 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 |
|---|---|---|---|---|---|---|
| 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 |
|---|---|---|---|---|---|---|
| Ibexis | MYGA Plus 5 (Simple Interest) SI | 5.75%Top Rate | 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% | |
| American National Insurance Company | Palladium MYG Annuity 5 | 5.15% | 5 yr | $250,000 | 10% | |
| Liberty Bankers Life | Heritage Classic 5 | 5.15% | 5 yr | $10,000 | 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 |
|---|---|---|---|---|---|---|
| Ibexis | MYGA Plus 7 (Simple Interest) SI | 5.95%Top Rate | 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 | |
| Aspida | Synergy Choice 7 | 5.30% | 7 yr | $100,000 | 0% | |
| American National Insurance Company | Palladium MYG Annuity 7 | 5.25% | 7 yr | $250,000 | 10% |
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% | |
| 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% | |
| Lincoln Financial | Lincoln MYGuarantee Plus 10 | 4.95% | 10 yr | $100,000 | 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
- Massachusetts has a flat 5% state income tax rate on annuity withdrawals (gains only for non-qualified; 100% for qualified)
- Massachusetts follows the federal exclusion ratio — you won’t be taxed on money you already paid taxes on when contributing to a non-qualified annuity
- The Massachusetts Life and Health Insurance Guaranty Association protects up to $250,000 per person, per insurer
- Massachusetts requires a minimum 10-day free-look period for annuity contracts
- Massachusetts has no estate tax exemption for annuity assets above certain thresholds — estate planning is important for larger annuity holdings
Are Fixed Annuities a Good Investment in Massachusetts?
Massachusetts is a higher-tax state by national standards, but for annuity owners the picture is more nuanced. The exclusion ratio means most non-qualified annuity buyers get a portion of every distribution tax-free — only the earnings portion faces the 5% state rate. For retirees using non-qualified annuities as their primary savings vehicle, the effective Massachusetts tax rate on distributions is often well below 5%.
Consider Margaret, age 66, living in Newton. She invested $100,000 in a 7-year MYGA at 5.20% — at maturity her account is worth $142,576. Her original $100,000 principal is returned tax-free; only the $42,576 in earnings is taxable. Massachusetts taxes that gain at 5% — a state tax of $2,129 on $42,576 of growth over 7 years. That’s a reasonable tax cost for guaranteed, market-risk-free growth.
Massachusetts also has no inheritance tax, but it does have an estate tax with an exemption of $2 million. Large annuity balances can contribute to an estate tax problem for Massachusetts residents — consult an estate planning attorney if your total estate exceeds $1.5 million.
Massachusetts Guaranty Association: How Your Annuity Is Protected
The Massachusetts Life and Health Insurance Guaranty Association (MLHIGA) provides protection if a licensed Massachusetts insurance carrier becomes insolvent. Coverage for annuities is up to $250,000 per person, per insurer — the standard level for most states.
| Coverage Type | Massachusetts 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 |
For Massachusetts investors with more than $250,000 to place, splitting between two or more A-rated carriers is the standard approach. Each carrier’s holdings receive separate protection up to the $250,000 limit.
Massachusetts Life and Health Insurance Guaranty Association (MLHIGA)
Website: mlhiga.org
How Massachusetts Taxes Annuity Income
Massachusetts taxes annuity income as ordinary income at a flat 5% rate. The state follows the federal exclusion ratio framework for non-qualified annuities, which means you recover your original after-tax principal tax-free — only the gain portion is taxed.
| Annuity Type | Massachusetts Tax Treatment | State Rate |
|---|---|---|
| Non-qualified annuity (after-tax funds) | Only gains taxed; principal excluded via exclusion ratio | 5% flat |
| Qualified annuity (IRA / 401(k) rollover) | 100% of distributions taxable as ordinary income | 5% flat |
| Roth IRA annuity | Qualified distributions tax-free at state level | 0% |
| 1035 Exchange | No Massachusetts tax triggered on the exchange | N/A |
One important note: Massachusetts does not conform to all federal retirement account rules in every detail. In most cases, the state follows federal treatment for IRAs and annuities — but if you have a complex situation (inherited annuity, non-standard rollover, annuity inside a trust), consult a Massachusetts tax professional before making distributions.
Massachusetts Division of Insurance
The Massachusetts Division of Insurance regulates all insurance carriers and agents operating in Massachusetts. Before purchasing an annuity, you can verify a carrier’s license and an agent’s credentials through the Division’s online lookup. If you have a complaint about an annuity product or how it was sold, the Division of Insurance is your starting point.
| Contact | Details |
|---|---|
| Agency | Massachusetts Division of Insurance |
| Phone | (617) 521-7794 |
| Consumer hotline | 1-877-563-4467 |
| Website | mass.gov/orgs/division-of-insurance |
| File a complaint | mass.gov/doi-complaints |
Tips for Buying an Annuity in Massachusetts
- Understand the exclusion ratio: For non-qualified annuities, track your cost basis carefully. The exclusion ratio determines what percentage of each distribution is tax-free — keeping this number correct saves you from overpaying state taxes.
- Estate planning matters here: Massachusetts has a $2 million estate tax exemption. If your total estate including annuities exceeds that, consult an estate planning attorney about how annuity death benefits factor in.
- Use an independent broker: Boston and its suburbs have a competitive independent broker market. Shop multiple carriers — rates vary significantly by term and carrier.
- Verify the free-look period: Massachusetts requires a minimum 10-day free-look period. Read the full contract before the window closes — surrender charges on early withdrawal can be substantial.
- Keep per-carrier balances under $250,000: Spread larger portfolios across multiple A-rated carriers for full guaranty association protection.
Frequently Asked Questions
What is the best annuity rate available in Massachusetts today?
The best MYGA rates for Massachusetts 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 Massachusetts tax annuity income?
Yes, at a flat 5% rate. For non-qualified (after-tax) annuities, only the gain portion of each withdrawal is taxed — your original principal is recovered tax-free using the exclusion ratio. For qualified annuities (IRA rollovers), 100% of each distribution is taxable at 5%.
How much does Massachusetts’s Guaranty Association protect?
The Massachusetts 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 across multiple A-rated carriers to maximize coverage.
Is there a free-look period for annuities in Massachusetts?
Yes. Massachusetts requires a minimum 10-day free-look period for annuity contracts. During this period, you can return the contract and receive a full refund of your premium. Check your specific contract — many carriers voluntarily offer 20–30 days.
Who regulates annuities in Massachusetts?
The Massachusetts Division of Insurance regulates all insurance carriers and agents in Massachusetts. Verify licenses and file complaints at mass.gov/orgs/division-of-insurance or call 1-877-563-4467.
Does Massachusetts have an estate tax on annuities?
Massachusetts has an estate tax with a $2 million exemption — one of the lowest in the country. Annuity values (including death benefits payable to an estate) can count toward the taxable estate. If your total estate including annuities may exceed $2 million, consult a Massachusetts estate planning attorney about structuring beneficiary designations to minimize estate tax exposure.