[aj_hero title=”Best Annuity Rates in Montana (2026)” breadcrumb=”Rates / Montana”]
Montana is one of only five states with no sales tax, which keeps everyday costs lower than many parts of the country. But Montana does tax income – and in 2024, the state simplified its structure to a two-bracket flat rate: 4.7% on income up to $20,500 and 5.9% on income above that threshold for single filers. For retirees with annuity income, that straightforward structure makes tax planning clear. MYGA rates from A-rated national carriers currently run well above Montana bank CD rates, giving fixed-income savers a meaningful advantage.
The rate table below shows today’s best MYGA rates available to Montana 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% | |
| GBU Life | Asset Guard Select 2 | 4.95% | 2 yr | $25,000 | 10% | |
| Oceanview Life and Annuity | Harbourview 2 | 4.95% | 2 yr | $70,000 | 10% | |
| Mass Mutual | Premier Voyage 2 | 4.05% | 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 | 5.45% | 3 yr | $100,000 | 10% | |
| Ibexis | MYGA Plus 3 (Simple Interest) SI | 5.40% | 3 yr | $100,000 | 10% | |
| Knighthead Life | Staysail 3 With Liquidity (Simple Interest) SI | 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% | |
| Athene IA | Athene Max Rate 3 | 5.10% | 3 yr | $100,000 | Interest Only | |
| Midland National Life | MNL Guarantee Pro 3 | 5.05% | 3 yr | $100,000 | Interest Only | |
| Oceanview Life and Annuity | Harbourview 3 | 5.05% | 3 yr | $70,000 | 10% |
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 | 5.05% | 4 yr | $100,000 | 10% | |
| Pacific Guardian Life | Diamond Head 4 | 5.00% | 4 yr | $10,000 | 10% | |
| GBU Life | Asset Guard Select 4 | 4.95% | 4 yr | $25,000 | 10% | |
| Mass Mutual | Premier Voyage 4 | 4.90% | 4 yr | $1,000,000 | 10% | |
| Corebridge Financial | Corebridge Pathway Choicesm Fixed 4 Annuity | 4.80% | 4 yr | $100,000 | 10% | |
| Mass Mutual | Stable Voyage 4 | 4.80% | 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 | 5.90% | 5 yr | $100,000 | 10% | |
| Knighthead Life | Staysail 5 With Liquidity (Simple Interest) SI | 5.90% | 5 yr | $100,000 | 10% | |
| Axonic Insurance | Waypoint 5 MYGA | 5.70% | 5 yr | $100,000 | 10% | |
| Fidelity Security Life Insurance Company | TaxVantage® Multi-Year Guaranteed Annuity 5 | 5.65% | 5 yr | $2,500 | 0% | |
| Americo | Platinum Assure 5 | 5.45% | 5 yr | $25,000 | 5% | |
| Athene IA | Athene Max Rate 5 | 5.40% | 5 yr | $100,000 | Interest Only | |
| Liberty Bankers Life | Heritage Elite 5 | 5.40% | 5 yr | $10,000 | 0% |
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 | 5.25% | 6 yr | $100,000 | 10% | |
| Pacific Guardian Life | Diamond Head 6 | 5.20% | 6 yr | $10,000 | 10% | |
| Mass Mutual | Premier Voyage 6 | 5.15% | 6 yr | $1,000,000 | 10% | |
| Guardian Insurance & Annuity Co. | Guardian Fixed Target Annuity 6 | 4.80% | 6 yr | $100,000 | 10% | |
| American General Life Insurance Company | American Pathway VisionMYG 6 | 4.65% | 6 yr | $100,000 | 15% | |
| Corebridge Financial | American Pathway VisionMYG 6 | 4.45% | 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 | 6.15% | 7 yr | $100,000 | 10% | |
| Knighthead Life | Staysail 7 With Liquidity (Simple Interest) SI | 6.15% | 7 yr | $100,000 | 10% | |
| Fidelity Security Life Insurance Company | TaxVantage® Multi-Year Guaranteed Annuity 7 | 5.60% | 7 yr | $2,500 | 0% | |
| Americo | Platinum Assure 7 | 5.50% | 7 yr | $25,000 | 5% | |
| Aspida | Synergy Choice 7 | 5.50% | 7 yr | $100,000 | 0% | |
| Athene IA | Athene Max Rate 7 | 5.50% | 7 yr | $100,000 | Interest Only | |
| Axonic Insurance | Waypoint 7 MYGA | 5.50% | 7 yr | $100,000 | 10% |
8-Year MYGA Rates
| Carrier | Product | AM Best | Rate | Term | Min Premium | Free Withdrawal |
|---|---|---|---|---|---|---|
| Clear Spring Life | Preserve MYGA 8 | 5.25%Top Rate | 8 yr | $100,000 | 10% | |
| Oxford Life Insurance Company | Multi-Select 8 | 5.20% | 8 yr | $20,000 | 10% | |
| Pacific Guardian Life | Diamond Head 8 | 5.20% | 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 | |
| Clear Spring Life | Preserve MYGA 9 | 5.25% | 9 yr | $100,000 | 10% | |
| Liberty Bankers Life | Heritage Classic 9 | 5.25% | 9 yr | $10,000 | 10% | |
| Pacific Guardian Life | Diamond Head 9 | 5.20% | 9 yr | $10,000 | 10% | |
| Securian Financial | SecureOption Choice 9 | 5.20% | 9 yr | $500,000 | 10% | |
| Oxford Life Insurance Company | Multi-Select 9 | 5.10% | 9 yr | $20,000 | 10% |
10-Year MYGA Rates
| Carrier | Product | AM Best | Rate | Term | Min Premium | Free Withdrawal |
|---|---|---|---|---|---|---|
| Oceanview Life and Annuity | Harbourview 10 | 5.65%Top Rate | 10 yr | $70,000 | 10% | |
| Axonic Insurance | Waypoint 10 MYGA | 5.50% | 10 yr | $100,000 | 10% | |
| American National Insurance Company | Palladium MYG Annuity 10 | 5.30% | 10 yr | $250,000 | 10% | |
| Reliance Standard Life | Reliance Guarantee - 10 | 5.30% | 10 yr | $20,000 | 10% | |
| Clear Spring Life | Preserve MYGA 10 | 5.25% | 10 yr | $100,000 | 10% | |
| Pacific Guardian Life | Diamond Head 10 | 5.20% | 10 yr | $10,000 | 10% | |
| Oxford Life Insurance Company | Multi-Select 10 | 5.15% | 10 yr | $20,000 | 10% | |
| American General Life Insurance Company | American Pathway VisionMYG 10 | 5.00% | 10 yr | $100,000 | 15% |
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.
- Montana simplified its income tax in 2024 to two brackets: 4.7% on income up to $20,500 and 5.9% on income above that (single filers). Most retirees with moderate annuity withdrawals will stay in the lower 4.7% bracket.
- Montana has no sales tax, which meaningfully reduces the overall cost of living for retirees on fixed incomes.
- The Montana Life and Health Insurance Guaranty Association protects annuity values up to $250,000 per person, per insurer if a licensed carrier becomes insolvent.
- Montana has no estate tax and no inheritance tax. Annuity death benefits pass directly to named beneficiaries outside of probate.
- Montana requires a minimum 10-day free-look period on all annuity contracts.
Are Fixed Annuities a Good Choice in Montana?
Montana’s combination of no sales tax, two-bracket flat income tax, and no estate tax makes it a relatively favorable state for retirees comparing fixed-income options. The absence of a sales tax reduces the cost of everyday purchases, which means fixed annuity income goes further in Montana than in states with 6% to 9% sales taxes on top of income taxes.
Consider James, age 64, in Billings. He has $160,000 in a CD renewing at 3.80%. He moves it into a 5-year MYGA at 5.20%. At maturity, his account reaches approximately $206,011 – a guaranteed gain of $46,011. Because James keeps his annual withdrawals modest – drawing around $18,000 per year from the annuity – he stays within Montana’s 4.7% bracket rather than crossing into the 5.9% rate. Combined with the deferral of all growth during the 5-year accumulation period, James’s after-tax outcome is significantly better than a CD generating taxable interest each year.
Montana has no estate tax and no inheritance tax. Named annuity beneficiaries receive the contract value outside of probate with no Montana state transfer tax.
Montana Guaranty Association: How Your Annuity Is Protected
The Montana Life and Health Insurance Guaranty Association protects Montana policyholders if a licensed insurance carrier becomes insolvent. Coverage is automatic – no separate enrollment and no added cost.
| Coverage Type | Montana 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 the limits above |
For investments over $250,000, divide funds across multiple A-rated carriers. Each insurer has its own separate $250,000 protection limit under Montana’s guaranty system.
Montana Life and Health Insurance Guaranty Association
Website: montanaiga.com
How Montana Taxes Annuity Income
Montana’s 2024 income tax reform simplified the brackets to just two rates: 4.7% and 5.9%. Annuity withdrawals are treated as ordinary income for Montana tax purposes, taxed at these rates based on your total taxable income for the year.
| Annuity Type | Montana Tax Treatment | State Rate |
|---|---|---|
| Non-qualified (after-tax funds) | Gain portion taxed at Montana income tax rates | 4.7% or 5.9% |
| Qualified (IRA / 401(k) rollover) | 100% of each distribution taxable at Montana rates | 4.7% or 5.9% |
| Roth IRA annuity | Qualified distributions are fully tax-free at federal and state level | 0% |
| 1035 Exchange | No state or federal tax triggered on the exchange itself | N/A |
The 4.7% bracket applies to Montana taxable income up to $20,500 for single filers and $41,000 for married filing jointly (approximate 2026 figures). Income above those thresholds is taxed at 5.9%. For retirees with combined income from Social Security and annuity withdrawals, carefully planning the size of annual withdrawals can help stay in the lower bracket. Montana does not fully exempt Social Security, but lower-income retirees may see a partial federal deduction that reduces the taxable amount. Withdrawals before age 59½ trigger the 10% federal early withdrawal penalty in addition to ordinary income tax at both federal and Montana rates.
Montana Commissioner of Securities and Insurance
The Montana Commissioner of Securities and Insurance (CSI) licenses and regulates all insurance carriers and agents operating in Montana. Before purchasing an annuity, verify the carrier is licensed in Montana and your agent holds an active Montana life insurance license.
| Contact | Details |
|---|---|
| Agency | Montana Commissioner of Securities and Insurance |
| Consumer helpline | 1-800-332-6148 |
| Website | csimt.gov |
| License lookup | Available at csimt.gov |
Tips for Buying an Annuity in Montana
- Keep annual withdrawals within the 4.7% bracket when possible: Montana’s 5.9% rate applies only to income above $20,500 (single) or $41,000 (married). Structuring withdrawals below those thresholds saves meaningfully on state tax each year.
- Account for no sales tax in your overall retirement budget: Montana’s sales-tax-free environment means your after-tax annuity income goes further on daily expenses than in most states. Factor this into your overall income needs calculation.
- Use an independent broker: Montana’s independent broker market is strong. An independent agent can shop 20+ national carriers rather than being limited to one company’s product lineup.
- Keep individual carrier exposure under $250,000: For larger annuity portfolios, divide investments across multiple A-rated carriers to maximize guaranty fund coverage at each insurer.
- Review the contract during the 10-day free-look: Focus on the surrender period length and annual free-withdrawal provision. Most 5-year MYGAs allow 10% penalty-free withdrawals per year after the first year.
Frequently Asked Questions
Does Montana tax annuity income?
Yes. Montana taxes annuity withdrawals at its two-bracket income tax rates: 4.7% on income up to $20,500 (single filers) and 5.9% on income above that threshold. Montana does not exempt retirement income broadly, but its simplified two-bracket structure and no sales tax environment make it more favorable than many other income-tax states.
What is the best annuity rate in Montana right now?
As of 2026, the best MYGA rates available to Montana residents from A-rated carriers range from approximately 4.50% to 5.50% depending on term. Five-year terms generally offer the strongest rates. The rate table above shows current figures updated daily.
How much does the Montana Guaranty Association cover?
The Montana Life and Health Insurance Guaranty Association protects up to $250,000 in annuity present value per person, per insurance company. If your total annuity investment exceeds $250,000, divide funds across multiple A-rated carriers to maximize protection at each insurer.
Who regulates annuities in Montana?
The Montana Commissioner of Securities and Insurance (CSI) licenses and regulates all insurance carriers and agents in Montana. Verify carrier licenses and file complaints at csimt.gov or by calling 1-800-332-6148.
Does Montana have a free-look period for annuities?
Yes. Montana requires a minimum 10-day free-look period on all annuity contracts. During that window, you can return the contract for a full refund of your premium with no surrender charges. Read the full contract – particularly the surrender schedule and market value adjustment terms – before the free-look period expires.