New Jersey has some of the highest property taxes and income tax rates in the country — but it also has one of the most generous retirement income exclusions for qualifying retirees. For annuity buyers with household income under $150,000, New Jersey can exclude up to $100,000 of retirement income annually, dramatically reducing the state tax burden. Understanding how annuities fit into your retirement income plan is the right starting point before comparing rates.
Below are today’s best MYGA rates available to New Jersey 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% | |
| Knighthead Life | Staysail 3 With Liquidity (Simple Interest) SI | 5.25% | 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 | |
| North American Company | NAC Guarantee Plus 3 | 4.80% | 3 yr | $100,000 | Interest Only | |
| Symetra Life Insurance Company | Symetra Select Pro 3 | 4.80% | 3 yr | $250,000 | 15% |
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% | |
| 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% | |
| Guaranty Income Life | Guaranty Rate Lock 4 | 4.50% | 4 yr | $100,000 | 5% |
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% | |
| Knighthead Life | Staysail 5 With Liquidity (Simple Interest) SI | 5.75% | 5 yr | $100,000 | 10% | |
| 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 | |
| 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% | |
| 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% | |
| Guaranty Income Life | Guaranty Rate Lock 6 | 4.10% | 6 yr | $100,000 | 5% |
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% | |
| 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% | |
| Liberty Bankers Life | Heritage Premier Plus 7 | 5.25% | 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% | |
| 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% | |
| Guaranty Income Life | Guaranty Rate Lock 9 | 4.10% | 9 yr | $100,000 | 5% |
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% | |
| Lincoln Financial | Lincoln MYGuarantee Plus 10 | 4.95% | 10 yr | $100,000 | 10% | |
| American General Life Insurance Company | American Pathway VisionMYG 10 | 4.65% | 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.
Key Takeaways
- New Jersey residents with income under $150,000 can exclude up to $75,000 (single) or $100,000 (married filing jointly) of retirement income — including annuity income — from New Jersey state tax
- The New Jersey Life and Health Insurance Guaranty Association protects up to $250,000 in annuity present value, with a $500,000 aggregate limit
- New Jersey’s top income tax rate is 10.75% — but most retirees drawing from annuities fall in lower brackets
- New Jersey law requires a minimum 10-day free-look period for annuity contracts
- New Jersey has an estate tax (eliminated in 2018) but retains an inheritance tax on non-direct-descendant beneficiaries
Are Fixed Annuities a Good Investment in New Jersey?
The key to annuity tax planning in New Jersey is the retirement income exclusion. Married couples filing jointly with total income under $150,000 can exclude up to $100,000 of pension and retirement income — including qualifying annuity payments — from New Jersey state income tax. For a couple drawing $80,000 per year from retirement accounts, that’s potentially zero New Jersey income tax on their entire annuity income.
Here’s what that looks like: Barbara, age 67, and her husband live in Morristown. Combined, they draw $90,000 per year from their IRA-funded annuities. Their combined income stays under $150,000. Under New Jersey’s exclusion, the full $90,000 of annuity income is excluded from New Jersey taxes. Federal tax still applies — but New Jersey collects nothing. This exclusion alone saves them approximately $3,150 per year in state taxes at New Jersey’s 3.5% bracket (the bracket most middle-income retirees fall in).
For higher-income retirees above the $150,000 threshold, New Jersey’s graduated rates up to 10.75% apply. But annuity tax deferral still makes sense — every year of deferral during accumulation is a year you avoid state taxes on growth in a taxable account.
New Jersey Guaranty Association: How Your Annuity Is Protected
The New Jersey Life and Health Insurance Guaranty Association (NJLHIGA) protects New Jersey policyholders if a licensed insurer becomes insolvent. New Jersey’s $500,000 aggregate limit is notably higher than most states, even though the per-annuity limit is the standard $250,000.
| Coverage Type | New Jersey 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 | $100,000 per person, per insurer |
| Maximum aggregate (all products) | $500,000 per person, per insurer |
For annuity portfolios over $250,000, spread across two or more A-rated carriers to keep each position within coverage limits.
New Jersey Life and Health Insurance Guaranty Association
Website: njlifega.org
How New Jersey Taxes Annuity Income
New Jersey taxes income on a graduated basis from 1.4% to 10.75%. However, the retirement income exclusion eliminates state tax on qualifying annuity income for most moderate-income retirees. New Jersey also does not have a separate early withdrawal penalty — federal rules apply.
| Annuity Type / Income Level | New Jersey Tax Treatment | State Rate |
|---|---|---|
| Qualifying retirement income — income <$150k (single: up to $75k excluded; joint: up to $100k excluded) | Excluded from NJ income tax | 0% on excluded amount |
| Non-qualified annuity — gains | Only gains taxed; principal returned via exclusion ratio | 1.4% – 10.75% |
| Income over $150,000 (full exposure) | Graduated NJ rates apply with no exclusion | 1.4% – 10.75% |
| 1035 Exchange | No NJ tax triggered on the exchange itself | N/A |
New Jersey eliminated its estate tax in 2018. However, New Jersey retains an inheritance tax — Class A beneficiaries (spouse, children, grandchildren) pay 0%, but siblings pay 11%–16% and other non-relatives pay 15%–16% on inherited annuity values. Name beneficiaries carefully.
New Jersey Department of Banking and Insurance (DOBI)
The New Jersey Department of Banking and Insurance (DOBI) licenses and regulates all insurance carriers and agents operating in New Jersey. Before purchasing an annuity, verify both the carrier and your agent through DOBI’s license lookup.
| Contact | Details |
|---|---|
| Agency | New Jersey Department of Banking and Insurance (DOBI) |
| Consumer hotline | 1-800-446-7467 |
| Website | nj.gov/dobi |
| License verification | NJ license lookup |
Tips for Buying an Annuity in New Jersey
- Calculate whether you qualify for the retirement exclusion: If your household income will be under $150,000 in retirement, the $75,000/$100,000 exclusion may eliminate most or all of your New Jersey annuity tax burden. Work with a NJ CPA to model this before you buy.
- Plan beneficiary designations for the inheritance tax: New Jersey’s inheritance tax doesn’t affect spouses or direct descendants — but it can take 11%–16% from assets passed to siblings or non-relatives. Review your beneficiary designations with this in mind.
- Don’t exceed $250,000 per carrier: The per-annuity limit is $250,000, despite the $500,000 aggregate. Keep individual carrier positions within the $250,000 threshold.
- Work with an independent broker: New Jersey has a deep independent insurance market, especially in the northern NJ suburbs and the Shore. Independent brokers compare 20+ carriers for your best rate.
- High earners should model the deferral benefit carefully: If your income exceeds $150,000 in retirement, you face NJ rates up to 10.75%. The tax deferral benefit during accumulation is especially valuable at higher brackets.
Frequently Asked Questions
Does New Jersey tax annuity income?
It depends on your income level. New Jersey residents with total income under $150,000 can exclude up to $75,000 (single) or $100,000 (married filing jointly) of retirement income — including qualifying annuity payments — from state taxes. Above $150,000, New Jersey’s graduated rates of 1.4%–10.75% apply.
What is the best annuity rate in New Jersey today?
The best MYGA rates available to New Jersey 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 New Jersey Guaranty Association cover?
The New Jersey guaranty association covers up to $250,000 in annuity present value per person, per insurer, with a $500,000 aggregate across all policy types. For annuity investments over $250,000, spread across multiple A-rated carriers.
Does New Jersey have an inheritance tax on annuities?
Yes. New Jersey eliminated its estate tax in 2018 but retains an inheritance tax. Direct descendants (children, grandchildren) and spouses pay 0%. Siblings pay 11%–16% and unrelated beneficiaries pay 15%–16% on inherited annuity values. Review your beneficiary designations accordingly.
What is the free-look period for annuities in New Jersey?
New Jersey 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 New Jersey?
The New Jersey Department of Banking and Insurance (DOBI) licenses and regulates all carriers and agents. Verify licenses at nj.gov/dobi or call 1-800-446-7467.
What happens to my annuity if my insurance company fails in New Jersey?
The New Jersey Life and Health Insurance Guaranty Association covers up to $250,000 in annuity present value per person, per insurer. Protection is automatic — no enrollment required.