[aj_hero title=”Best Annuity Rates in New Mexico (2026)” breadcrumb=”Rates / New Mexico”]
New Mexico has been making its retirement tax laws more favorable in recent years. In 2023, the legislature voted to exempt Social Security income from state income tax – a significant change for retirees. The state still taxes private retirement income including annuity withdrawals, but at a top rate of 5.9% that is competitive with many neighboring states. For fixed-income retirees, a MYGA from an A-rated carrier provides guaranteed growth with full tax deferral that keeps more of the gain compounding until withdrawal.
The rate table below shows today’s best MYGA rates available to New Mexico 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% | |
| Royal Neighbors of America | MYGA 10 Year | 5.50% | 10 yr | $100,000 | Interest Only | |
| 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% |
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.
- New Mexico fully exempts Social Security income from state income tax as of 2023. This is a meaningful change that reduces the total tax burden on most retirees’ income.
- New Mexico’s graduated income tax tops out at 5.9%. Private retirement income including annuity withdrawals is generally taxable at state income tax rates.
- The New Mexico Life Insurance Guaranty Association protects annuity values up to $250,000 per person, per insurer if a licensed carrier becomes insolvent.
- New Mexico has no estate tax and no inheritance tax. Annuity death benefits pass directly to named beneficiaries outside of probate.
- New Mexico requires a minimum 10-day free-look period on all annuity contracts.
Are Fixed Annuities a Good Choice in New Mexico?
For New Mexico retirees, fixed annuities serve the same core purpose they do in any state: guaranteed growth, full tax deferral on gains until withdrawal, and principal protection from market losses. But in New Mexico, the 2023 Social Security exemption has a specific planning implication. Because Social Security is now off the taxable income table, many retirees will find their remaining taxable income – including annuity withdrawals – stays within the lower New Mexico tax brackets (1.7% to 4.9%) rather than reaching the 5.9% top rate.
Consider Tom, age 68, in Albuquerque. He receives $26,000 per year in Social Security (now state-tax-free) and $18,000 from a small pension. He has $150,000 in savings earning 3.00%. He puts that $150,000 into a 5-year MYGA at 5.15%. At maturity, his account reaches approximately $192,595 – a guaranteed gain of $42,595. Because his taxable income (pension only, before annuity withdrawals) is modest, systematic annual withdrawals from the MYGA will likely fall within New Mexico’s 4.9% bracket rather than the 5.9% top rate. The five-year deferral on all growth is an additional compounding benefit over a CD that generates annual 1099 interest.
New Mexico has no state estate tax and no inheritance tax. Named annuity beneficiaries receive contract proceeds outside of probate with no New Mexico state transfer tax.
New Mexico Guaranty Association: How Your Annuity Is Protected
The New Mexico Life Insurance Guaranty Association protects New Mexico policyholders if a licensed insurance carrier becomes insolvent. Coverage is automatic – no separate enrollment and no additional cost.
| Coverage Type | New Mexico 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.
New Mexico Life Insurance Guaranty Association
Website: nmliga.org
How New Mexico Taxes Annuity Income
New Mexico taxes income at graduated rates from 1.7% to 5.9%. Social Security income is fully exempt from New Mexico tax as of 2023. Private retirement income – including annuity withdrawals from both qualified and non-qualified contracts – is generally taxable at state rates. The table below shows how different annuity types are treated.
| Annuity Type | New Mexico Tax Treatment | State Rate |
|---|---|---|
| Non-qualified (after-tax funds) | Gain portion taxed at New Mexico graduated rates | 1.7% to 5.9% |
| Qualified (IRA / 401(k) rollover) | 100% of each distribution taxable at New Mexico rates | 1.7% to 5.9% |
| Social Security income | Fully exempt from New Mexico state income tax (as of 2023) | 0% |
| 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 |
New Mexico’s graduated brackets run from 1.7% (income up to $5,500 single) through 4.9% and top out at 5.9% (income over $210,000 single). Most retirees with moderate annuity income will land in the 4.9% bracket rather than the top 5.9% rate. Managing annual withdrawals to stay below the 5.9% bracket threshold saves meaningfully on state tax over a multi-year retirement. Withdrawals before age 59½ trigger the 10% federal early withdrawal penalty in addition to ordinary income tax at both federal and state rates.
New Mexico Office of the Superintendent of Insurance
The New Mexico Office of the Superintendent of Insurance (OSI) licenses and regulates all insurance carriers and agents operating in New Mexico. Before buying an annuity, verify that the carrier is licensed in New Mexico and your agent holds an active New Mexico life insurance license.
| Contact | Details |
|---|---|
| Agency | New Mexico Office of the Superintendent of Insurance |
| Consumer helpline | 1-855-427-5674 |
| Website | osi.state.nm.us |
| License lookup | Available at osi.state.nm.us |
Tips for Buying an Annuity in New Mexico
- Leverage the Social Security exemption in your income planning: Since Social Security is now state-tax-free in New Mexico, many retirees can time annuity withdrawals for years when their other taxable income is lowest – keeping more of the gain in the lower New Mexico brackets.
- Consider structuring withdrawals to stay under the 5.9% top bracket: New Mexico’s 5.9% rate applies to higher income levels. Most retirees with moderate annuity withdrawals will stay in the 4.9% range. Planning systematic annual withdrawals rather than large lump sums keeps you in the lower bracket.
- Use an independent broker to shop A-rated carriers: Not every national carrier is licensed in New Mexico. An independent broker familiar with the state can identify who offers the best rates with New Mexico product approval.
- Keep individual carrier exposure under $250,000: Divide larger annuity investments across multiple A-rated carriers to maximize guaranty fund protection at each insurer.
- Use the 10-day free-look period: Review the full contract before the window closes. Pay particular attention to the surrender charge schedule and any market value adjustment provisions that could affect early withdrawals.
Frequently Asked Questions
Does New Mexico tax annuity income?
Yes. New Mexico taxes private retirement income – including annuity withdrawals – at its graduated state income tax rates from 1.7% to 5.9%. However, Social Security income is fully exempt from New Mexico state income tax as of 2023. For retirees with moderate total income, most annuity withdrawals will be taxed at the 4.9% rate rather than the 5.9% top rate.
What is the best annuity rate in New Mexico right now?
As of 2026, the best MYGA rates available to New Mexico residents from A-rated carriers range from approximately 4.50% to 5.50% depending on term. Five-year terms typically offer the strongest rates. See the rate table above for current figures updated daily.
How much does the New Mexico Guaranty Association cover?
The New Mexico Life Insurance Guaranty Association protects up to $250,000 in annuity present value per person, per insurance company. For investments over $250,000, spread funds across multiple A-rated carriers to maximize protection at each insurer.
Who regulates annuities in New Mexico?
The New Mexico Office of the Superintendent of Insurance (OSI) licenses and regulates all insurance carriers and agents in New Mexico. Verify carrier and agent licenses at osi.state.nm.us or by calling 1-855-427-5674.
Is Social Security taxed in New Mexico?
No. New Mexico fully exempts Social Security income from state income tax as of 2023. This is a significant recent change – before 2023, New Mexico taxed Social Security income at the same graduated rates as other income. The exemption reduces the total state tax burden on most retirees, and means annuity withdrawal planning can focus on the remaining taxable income without Social Security inflating the bracket.