Minnesota has some of the highest income tax rates in the country — with a top rate of 9.85% — but it also offers a robust independent insurance market serving the Twin Cities, Rochester, and the greater Upper Midwest. For Minnesota annuity buyers, the tax-deferral benefit of a MYGA is especially powerful: every year of deferred growth is a year you avoid Minnesota’s high rates on investment income. Understanding how annuities work is the right place to start before choosing a carrier and term.
Below are today’s best MYGA rates available to Minnesota residents, filtered to A-rated carriers only, updated daily.
2-Year MYGA Rates
| Carrier | Product | AM Best | Rate | Term | Min Premium | Free Withdrawal |
|---|---|---|---|---|---|---|
| Oceanview Life and Annuity | Harbourview 2 | 4.80%Top Rate | 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% | |
| 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 | |
| Symetra Life Insurance Company | Symetra Select Max 3 | 4.85% | 3 yr | $250,000 | 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% | |
| 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% | |
| Royal Neighbors of America | MYGA 5 Year | 5.20% | 5 yr | $100,000 | Interest Only |
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% | |
| 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% | |
| 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% | |
| 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
- Minnesota’s top income tax rate is 9.85% — making tax-deferred annuity growth especially valuable for high earners who avoid annual taxation during accumulation
- Minnesota’s guaranty association covers up to $250,000 in annuity present value, with a $500,000 aggregate across all policy types — one of the higher aggregate limits in the country
- Minnesota law requires a minimum 10-day free-look period for annuity contracts
- Minnesota does not have a separate state early withdrawal penalty — federal rules apply
- Minnesota has a state estate tax with a $3 million exemption — lower than the federal threshold, requiring planning for larger estates
Are Fixed Annuities a Good Investment in Minnesota?
In Minnesota, the tax-deferral advantage of an annuity is at its sharpest. When your marginal state income tax rate can reach 9.85%, every year your MYGA grows inside the annuity wrapper — without annual taxation — saves you real money. A $200,000 MYGA earning 5.00% generates $10,000 in year-one growth. In a taxable CD or bond paying 5.00%, a Minnesota resident in the 9.85% bracket owes $985 in state taxes on that $10,000. In a MYGA, that $985 stays in your account compounding for the length of the contract.
Over a 5-year contract, the annual deferral advantage compounds meaningfully. At a 9.85% state rate, the total deferred state taxes on $50,000 of interest income would be approximately $4,925 — money that stays working inside the annuity instead of going to St. Paul each year.
Minnesota has a state estate tax with a $3 million exemption — lower than the federal $13.61 million threshold. This means more Minnesota estates are subject to state estate tax than in most states. Annuity beneficiary planning is particularly important for Minnesota residents with larger estates.
Minnesota Guaranty Association: How Your Annuity Is Protected
The Minnesota Life and Health Insurance Guaranty Association (MNLHIGA) protects Minnesota policyholders if a licensed insurer becomes insolvent. Minnesota’s $500,000 aggregate limit across all policy types is notably generous — though the per-annuity limit is $250,000.
| Coverage Type | Minnesota Protection Limit |
|---|---|
| Annuity present value | $250,000 per person, per insurer |
| Life insurance death benefit | $500,000 per person, per insurer |
| Life insurance cash value | $130,000 per person, per insurer |
| Maximum aggregate (all products) | $500,000 per person, per insurer |
For annuity portfolios over $250,000, split across two or more A-rated carriers to keep each position within the per-annuity coverage limit.
Minnesota Life and Health Insurance Guaranty Association
Website: mnlifega.org
How Minnesota Taxes Annuity Income
Minnesota taxes annuity income as ordinary income at graduated rates from 5.35% to 9.85%. Minnesota does not offer a blanket retirement income exemption — most retirement income, including annuity withdrawals, is taxed at ordinary rates.
| Minnesota Taxable Income (Single) | Minnesota Rate |
|---|---|
| $0 – $31,690 | 5.35% |
| $31,691 – $104,090 | 6.80% |
| $104,091 – $183,340 | 7.85% |
| Over $183,340 | 9.85% |
Minnesota has a state estate tax with a $3 million exemption and rates up to 16% on amounts above. This is significantly lower than the federal exemption and affects more Minnesota families than in most states. Annuity death benefits and account values should be considered in estate planning.
Minnesota Department of Commerce
The Minnesota Department of Commerce licenses and regulates all insurance carriers and agents operating in Minnesota. Before purchasing an annuity, verify the carrier’s license and your agent’s license through the Department’s online lookup. Consumer complaints are handled through the Commerce Department’s Insurance Division.
| Contact | Details |
|---|---|
| Agency | Minnesota Department of Commerce |
| Consumer services | 651-539-1500 |
| Toll-free | 1-800-657-3602 |
| Website | mn.gov/commerce |
| License verification | MN license lookup |
Tips for Buying an Annuity in Minnesota
- Deferral is worth more here than in most states: At Minnesota’s 9.85% top rate, avoiding annual state tax on growth is worth nearly 1% of additional after-tax yield per year. Maximize deferral periods when you don’t need income immediately.
- Plan your estate around the $3M state exemption: Minnesota’s estate tax exemption is $3 million — far below the federal threshold. Annuity beneficiary designations and estate planning are more important for Minnesota residents with larger estates.
- Work with an independent broker: The Twin Cities metro has a highly competitive independent broker market. Independent brokers compare 20+ carriers to find your best available rate.
- Don’t exceed $250,000 per carrier: Despite the $500,000 aggregate, the annuity-specific limit is $250,000 per insurer. Keep individual positions within that threshold.
- Use the free-look period: Minnesota requires at least 10 days to review and cancel any annuity contract for a full premium refund.
Frequently Asked Questions
Does Minnesota tax annuity income?
Yes, at graduated rates from 5.35% to 9.85%. Minnesota does not offer a blanket retirement income exemption — most annuity withdrawals are taxed at ordinary state income tax rates. This makes tax deferral during accumulation particularly valuable for Minnesota residents.
What is the best annuity rate in Minnesota today?
The best MYGA rates available to Minnesota 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 from AnnuityRateWatch.
How much does the Minnesota Guaranty Association cover?
Minnesota protects up to $250,000 in annuity present value per person, per insurer, with a $500,000 aggregate across all policy types at the same insurer. For annuity investments over $250,000, spread across multiple A-rated carriers.
Does Minnesota have an estate tax?
Yes. Minnesota has a state estate tax with a $3 million exemption — significantly lower than the federal $13.61 million threshold. Rates go up to 16% on amounts above the exemption. This affects more Minnesota families than in most states and makes estate planning more important here.
What is the free-look period for annuities in Minnesota?
Minnesota 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 Minnesota?
The Minnesota Department of Commerce licenses and regulates all carriers and agents in Minnesota. Verify licenses at mn.gov/commerce or call 1-800-657-3602.
What happens to my annuity if my insurance company fails in Minnesota?
The Minnesota Life and Health Insurance Guaranty Association covers up to $250,000 of your annuity’s present value per insurer if your carrier becomes insolvent. Protection is automatic — no enrollment required.