Michigan retirees benefit from a relatively moderate state income tax and a retirement income deduction that can significantly reduce what they owe on annuity withdrawals. With a large independent insurance market serving Detroit, Grand Rapids, Lansing, and the Upper Peninsula, Michigan residents have full access to the national MYGA rate market. Before diving into rates, it helps to understand how annuities work and which type fits your situation.
Below are today’s best MYGA rates available to Michigan residents, filtered to carriers rated A- or better, updated daily.
2-Year MYGA Rates
| Carrier | Product | AM Best | Rate | Term | Min Premium | Free Withdrawal |
|---|---|---|---|---|---|---|
| Oceanview Life and Annuity | Harbourview 2 | 5.15%Top Rate | 2 yr | $70,000 | 10% | |
| Axonic Insurance | Waypoint 2 MYGA | 5.10% | 2 yr | $100,000 | 10% | |
| GBU Life | Asset Guard Select 2 | 5.05% | 2 yr | $25,000 | 10% | |
| Aspida | Synergy Choice 2 | 4.80% | 2 yr | $100,000 | 0% | |
| Mass Mutual | Premier Voyage 2 | 4.70% | 2 yr | $1,000,000 | 10% | |
| Americo | Platinum Assure 2 | 4.15% | 2 yr | $25,000 | 3% |
3-Year MYGA Rates
| Carrier | Product | AM Best | Rate | Term | Min Premium | Free Withdrawal |
|---|---|---|---|---|---|---|
| Ibexis | MYGA Plus 3 (Simple Interest) SI | 6.15%Top Rate | 3 yr | $100,000 | 10% | |
| American National Insurance Company | Palladium MYG MAX 3 | 5.90% | 3 yr | $250,000 | 0% | |
| Knighthead Life | Staysail 3 (Simple Interest) SI | 5.85% | 3 yr | $100,000 | 0% | |
| American National Insurance Company | Palladium MYG Annuity 3 | 5.75% | 3 yr | $250,000 | 10% | |
| Athene IA | Athene Max Rate 3 | 5.75% | 3 yr | $100,000 | Interest Only | |
| American National Insurance Company | Palladium Match MYG Annuity 3 | 5.70% | 3 yr | $250,000 | 10% | |
| Aspida | Synergy Choice 3 | 5.70% | 3 yr | $100,000 | 0% | |
| Axonic Insurance | Waypoint 3 MYGA | 5.65% | 3 yr | $100,000 | 10% |
4-Year MYGA Rates
| Carrier | Product | AM Best | Rate | Term | Min Premium | Free Withdrawal |
|---|---|---|---|---|---|---|
| Oxford Life Insurance Company | Multi-Select 4 | 5.75%Top Rate | 4 yr | $20,000 | 10% | |
| Americo | Platinum Assure 4 | 5.70% | 4 yr | $25,000 | 5% | |
| Oceanview Life and Annuity | Harbourview 4 | 5.70% | 4 yr | $70,000 | 10% | |
| Clear Spring Life | Preserve MYGA 4 | 5.60% | 4 yr | $100,000 | 10% | |
| Mass Mutual | Premier Voyage 4 | 5.55% | 4 yr | $1,000,000 | 10% | |
| Guardian Insurance & Annuity Co. | Guardian Fixed Target Annuity 4 | 5.50% | 4 yr | $100,000 | 10% | |
| Nationwide Life Insurance Company | Secure Growth 4 MVA | 5.50% | 4 yr | $100,000 | 10% | |
| Mass Mutual | Stable Voyage 4 | 5.45% | 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 | 6.65%Top Rate | 5 yr | $100,000 | 0% | |
| Ibexis | MYGA Plus 5 (Simple Interest) SI | 6.60% | 5 yr | $100,000 | 10% | |
| Aspida | Synergy Choice 5 | 6.30% | 5 yr | $100,000 | 0% | |
| Axonic Insurance | Waypoint 5 MYGA | 6.10% | 5 yr | $100,000 | 10% | |
| Athene IA | Athene Max Rate 5 | 6.05% | 5 yr | $100,000 | Interest Only | |
| Global Atlantic Financial Group | SecureFore II 5 | 6.00% | 5 yr | $100,000 | 10% | |
| Knighthead Life | Staysail 5 With Liquidity (Simple Interest) SI | 6.00% | 5 yr | $100,000 | 10% | |
| Nationwide Life Insurance Company | Secure Growth 5 MVA | 6.00% | 5 yr | $100,000 | 10% |
6-Year MYGA Rates
| Carrier | Product | AM Best | Rate | Term | Min Premium | Free Withdrawal |
|---|---|---|---|---|---|---|
| Oceanview Life and Annuity | Harbourview 6 | 6.10%Top Rate | 6 yr | $70,000 | 10% | |
| Oxford Life Insurance Company | Multi-Select 6 | 5.95% | 6 yr | $20,000 | 10% | |
| Americo | Platinum Assure 6 | 5.90% | 6 yr | $25,000 | 5% | |
| Guardian Insurance & Annuity Co. | Guardian Fixed Target Annuity 6 | 5.80% | 6 yr | $100,000 | 10% | |
| Mass Mutual | Premier Voyage 6 | 5.75% | 6 yr | $1,000,000 | 10% | |
| Clear Spring Life | Preserve MYGA 6 | 5.70% | 6 yr | $100,000 | 10% | |
| American General Life Insurance Company | American Pathway VisionMYG 6 | 5.40% | 6 yr | $100,000 | 15% | |
| Corebridge Financial | American Pathway VisionMYG 6 | 5.40% | 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 | 7.10%Top Rate | 7 yr | $100,000 | 0% | |
| Ibexis | MYGA Plus 7 (Simple Interest) SI | 6.85% | 7 yr | $100,000 | 10% | |
| Aspida | Synergy Choice 7 | 6.35% | 7 yr | $100,000 | 0% | |
| Athene IA | Athene Max Rate 7 | 6.15% | 7 yr | $100,000 | Interest Only | |
| Knighthead Life | Staysail 7 With Liquidity (Simple Interest) SI | 6.05% | 7 yr | $100,000 | 10% | |
| Americo | Platinum Assure 7 | 6.00% | 7 yr | $25,000 | 5% | |
| Global Atlantic Financial Group | SecureFore II 7 | 6.00% | 7 yr | $100,000 | 10% | |
| AuguStar | LunarGuard 7 MVA | 5.95% | 7 yr | $100,000 | 5% |
8-Year MYGA Rates
| Carrier | Product | AM Best | Rate | Term | Min Premium | Free Withdrawal |
|---|---|---|---|---|---|---|
| Oxford Life Insurance Company | Multi-Select 8 | 5.90%Top Rate | 8 yr | $20,000 | 10% | |
| Clear Spring Life | Preserve MYGA 8 | 5.70% | 8 yr | $100,000 | 10% | |
| Pacific Guardian Life | Diamond Head 8 | 5.40% | 8 yr | $10,000 | 10% | |
| American National Insurance Company | Palladium MYG Annuity 8 | 5.30% | 8 yr | $250,000 | 10% | |
| Guaranty Income Life | Guaranty Rate Lock 8 | 3.90% | 8 yr | $250,000 | 5% |
9-Year MYGA Rates
| Carrier | Product | AM Best | Rate | Term | Min Premium | Free Withdrawal |
|---|---|---|---|---|---|---|
| Oxford Life Insurance Company | Multi-Select 9 | 5.95%Top Rate | 9 yr | $20,000 | 10% | |
| Capitol Life Insurance Company | Heritage Elite 9 | 5.75% | 9 yr | $10,000 | 0% | |
| Liberty Bankers Life | Heritage Elite 9 | 5.75% | 9 yr | $10,000 | 0% | |
| Capitol Life Insurance Company | Heritage Premier 9 | 5.70% | 9 yr | $10,000 | Interest Only | |
| Clear Spring Life | Preserve MYGA 9 | 5.70% | 9 yr | $100,000 | 10% | |
| Liberty Bankers Life | Heritage Premier 9 | 5.70% | 9 yr | $10,000 | Interest Only | |
| Capitol Life Insurance Company | Heritage Classic 9 | 5.65% | 9 yr | $10,000 | 10% | |
| Liberty Bankers Life | Heritage Classic 9 | 5.65% | 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 | 6.20%Top Rate | 10 yr | $70,000 | 10% | |
| Lincoln Financial | Lincoln MYGuarantee Plus 10 | 6.00% | 10 yr | $100,000 | 10% | |
| Oxford Life Insurance Company | Multi-Select 10 | 5.95% | 10 yr | $20,000 | 10% | |
| Reliance Standard Life | Reliance Guarantee - 10 | 5.90% | 10 yr | $20,000 | 10% | |
| Delaware Life | Pinnacle Plus MYGA 10 | 5.85% | 10 yr | $100,000 | 10% | |
| Royal Neighbors of America | MYGA 10 Year | 5.80% | 10 yr | $100,000 | Interest Only | |
| American General Life Insurance Company | American Pathway VisionMYG 10 | 5.75% | 10 yr | $100,000 | 15% | |
| Assurity Life | SecurePath 10 | 5.75% | 10 yr | $2,000 | 12% |
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
- Michigan’s 4.05% flat income tax applies to annuity income, but Michigan offers retirement income deductions that can reduce or eliminate the state tax burden depending on your birth year
- The Michigan Life and Health Insurance Guaranty Association protects up to $250,000 in annuity present value per person, per insurer
- Michigan law requires a minimum 10-day free-look period for annuity contracts
- Michigan has no state estate tax, annuity death benefits pass to heirs without Michigan-level estate taxation
- Most major national MYGA carriers are licensed in Michigan, you have access to the full competitive rate market
Are Fixed Annuities a Good Investment in Michigan?
Michigan’s retirement income deduction is tiered by birth year, an unusual structure that means your tax burden on annuity income depends significantly on when you were born. Those born before 1946 can generally deduct all qualifying retirement income from Michigan taxes. Those born between 1946 and 1952 get a partial deduction. Those born after 1952 currently receive no automatic deduction, though additional changes are being phased in through 2026.
Here’s an example: Thomas, age 70 (born 1955), lives in Grand Rapids and begins drawing $40,000 per year from his IRA-funded annuity. Under Michigan’s current rules for his birth year, he may qualify for a partial retirement income deduction. At Michigan’s 4.05% rate on the taxable portion, his state tax bill is manageable, and far lower than what he’d face in states like Minnesota (9.85% top rate) or Oregon (9.9%). Michigan’s moderate rate combined with any applicable deduction keeps more of each withdrawal in his pocket.
Michigan Guaranty Association: How Your Annuity Is Protected
The Michigan Life and Health Insurance Guaranty Association (MLHIGA) protects Michigan policyholders if a licensed insurer becomes insolvent. Coverage activates automatically, no enrollment and no extra cost required.
| Coverage Type | Michigan 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, spread across two or more carriers rated A- or better to keep each position fully within coverage limits.
Michigan Life and Health Insurance Guaranty Association
Website: mlhiga.org
How Michigan Taxes Annuity Income
Michigan taxes annuity income at a flat 4.05% rate, but the retirement income deduction significantly reduces the effective rate for many retirees. The deduction amount depends on your birth year and filing status.
| Birth Year | Michigan Retirement Income Treatment | Effective State Rate |
|---|---|---|
| Before 1946 | All qualifying retirement/pension income deductible | 0% on deducted amount |
| 1946 – 1952 | Partial deduction (up to $20,000 single / $40,000 joint) | Reduced effective rate |
| After 1952 | Deduction phasing in; no full automatic exemption yet | 4.05% on taxable portion |
| All, non-qualified annuities | Only gains taxed; principal returned tax-free | 4.05% on gains |
Michigan has no state estate tax. Federal estate tax rules apply for large estates. Michigan does not impose an inheritance tax.
Michigan Department of Insurance and Financial Services (DIFS)
The Michigan Department of Insurance and Financial Services (DIFS) licenses and regulates all insurance carriers and agents operating in Michigan. Before purchasing an annuity, verify the carrier’s license and your agent’s license through DIFS’s online lookup.
| Contact | Details |
|---|---|
| Agency | Michigan Dept. of Insurance and Financial Services (DIFS) |
| Consumer hotline | 1-877-999-6442 |
| Website | michigan.gov/difs |
| License verification | DIFS license search |
Tips for Buying an Annuity in Michigan
- Know your birth-year retirement deduction: Michigan’s deduction is tiered by birth year. Find out what deduction you qualify for before estimating after-tax annuity income. A Michigan CPA can calculate your specific situation.
- Work with an independent broker: Michigan’s Detroit, Grand Rapids, and Ann Arbor markets have strong independent broker networks. Independent brokers compare 20+ carriers to find your best available rate.
- Don’t exceed $250,000 per carrier: For portfolios over $250,000, use two or more carriers rated A- or better to stay within guaranty fund limits.
- Use the free-look period: Michigan requires at least 10 days to review and cancel your annuity contract for a full premium refund. Read the full contract during this window.
- No estate tax is an advantage: Michigan has no state estate tax, so annuity death benefits and accumulated values pass to heirs without Michigan estate taxation.
Frequently Asked Questions
Does Michigan tax annuity income?
Michigan taxes annuity income at a flat 4.05% rate, but offers a retirement income deduction that varies by birth year. Those born before 1946 can generally deduct all qualifying retirement income. Those born 1946–1952 get a partial deduction. Those born after 1952 currently get limited deductions, though this is being phased in through 2026. Consult a Michigan CPA for your specific situation.
What is the best annuity rate in Michigan today?
The best MYGA rates available to Michigan residents from carriers rated A- or better currently top out at 7.10%, depending on the term. See the live rate table above for current figures updated daily.
How much does the Michigan Guaranty Association cover?
The Michigan 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 carriers rated A- or better.
Does Michigan have an estate tax?
No. Michigan does not have a state estate tax or inheritance tax. Annuity death benefits pass to beneficiaries without Michigan-level estate taxation. Federal estate tax rules apply for very large estates.
What is the free-look period for annuities in Michigan?
Michigan 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 Michigan?
The Michigan Department of Insurance and Financial Services (DIFS) licenses and regulates all carriers and agents in Michigan. Verify licenses at michigan.gov/difs or call 1-877-999-6442.
What happens to my annuity if my insurance company fails in Michigan?
The Michigan Life and Health Insurance Guaranty Association covers up to $250,000 of your annuity’s present value if your carrier becomes insolvent. Protection is automatic, no enrollment required.
