North Carolina has become one of the most popular retirement destinations in the country — with Asheville, the Research Triangle, Charlotte, and the Outer Banks drawing pre-retirees from higher-tax states. With a moderate flat income tax, a generous retirement income exclusion, and $300,000 in annuity guaranty protection (higher than most states), North Carolina offers solid conditions for annuity buyers.
Below are today’s best MYGA rates available to North Carolina 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 | 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% | |
| Fidelity Security Life Insurance Company | TaxVantage® Multi-Year Guaranteed Annuity 7 | 5.60% | 7 yr | $2,500 | 0% | |
| 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 | |
| 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
- North Carolina’s 4.75% flat income tax rate is among the lower rates in the East — and continues to drop under current law
- North Carolina’s guaranty association covers up to $300,000 in annuity present value — higher than the $250,000 standard in most states
- Bailey retirement income exclusion can fully exempt certain retirement income from North Carolina taxes for qualifying retirees
- North Carolina law requires a minimum 10-day free-look period for annuity contracts
- North Carolina has no estate tax and no inheritance tax
Are Fixed Annuities a Good Investment in North Carolina?
North Carolina is progressively reducing its income tax rate — dropping from 4.99% to 4.75% in 2024, with further reductions scheduled through 2030 (targeting 3.99%). For annuity buyers, this trajectory means your future withdrawals may be taxed at even lower rates than today, making the tax-deferral case for annuities stronger here than in states with rising tax rates.
Here’s a concrete example: Susan, age 63, moved from New Jersey to Raleigh and has $200,000 from a 401(k) to protect. She rolls it into a 7-year MYGA at 5.00%. At maturity she has approximately $281,420 — guaranteed, no market exposure. Her $81,420 in growth is taxed at North Carolina’s 4.75% rate — roughly $3,867 in state taxes over the entire deferral period. The same investment in New Jersey (at 9.99% for her income level) would have cost $8,134 in state taxes. The savings from choosing North Carolina are $4,267 on this one investment.
North Carolina also has no estate tax and no inheritance tax, so annuity death benefits pass to beneficiaries without additional state-level cost.
North Carolina Guaranty Association: How Your Annuity Is Protected
The North Carolina Life and Health Insurance Guaranty Association (NCLHIGA) protects North Carolina policyholders if a licensed insurer becomes insolvent. At $300,000, North Carolina’s annuity protection is higher than the $250,000 standard offered by most states.
| Coverage Type | North Carolina Protection Limit |
|---|---|
| Annuity present value | $300,000 per person, per insurer |
| Life insurance death benefit | $300,000 per person, per insurer |
| Life insurance cash value | $300,000 per person, per insurer |
| Multiple policies at same insurer | Combined subject to limits above |
North Carolina’s $300,000 annuity limit means you can place a somewhat larger single-carrier position than in most states while staying fully protected. For portfolios over $300,000, spread across multiple A-rated carriers.
North Carolina Life and Health Insurance Guaranty Association
Website: nclhiga.org
How North Carolina Taxes Annuity Income
North Carolina taxes annuity income as ordinary income at a flat 4.75% rate (as of 2024), one of the lower rates in the eastern United States. Additionally, qualifying retirees under the Bailey exclusion may be able to exclude certain retirement income entirely — check with a North Carolina tax advisor if your retirement income stems from state or federal government employment.
| Annuity Type | North Carolina Tax Treatment | State Rate |
|---|---|---|
| Non-qualified (after-tax funds) | Only gains taxed; principal excluded via exclusion ratio | 4.75% flat |
| Qualified (IRA / 401(k) rollover) | 100% of distributions taxable as ordinary income | 4.75% flat |
| Bailey exclusion (qualifying government retirees) | Certain government pension/retirement income fully excluded | 0% if qualifying |
| 1035 Exchange | No North Carolina tax triggered on the exchange itself | N/A |
North Carolina has no estate tax and no inheritance tax. The state income tax rate is scheduled to continue declining under current law — 4.5% in 2025, and targets as low as 3.99% by 2030, assuming the state maintains its revenue targets.
North Carolina Department of Insurance (NCDOI)
The North Carolina Department of Insurance (NCDOI) licenses and regulates all insurance carriers and agents operating in North Carolina. Before purchasing an annuity, verify the carrier’s license and your agent’s license through NCDOI’s online lookup. Consumer complaints are handled through the NCDOI’s Consumer Services Division.
| Contact | Details |
|---|---|
| Agency | North Carolina Department of Insurance (NCDOI) |
| Consumer services | 1-855-408-1212 |
| Website | ncdoi.gov |
| License verification | ncdoi.gov/agent-services |
Tips for Buying an Annuity in North Carolina
- The declining tax rate works in your favor: North Carolina’s income tax rate is legally scheduled to decline over the next several years. Annuity income you defer today may be taxed at a lower state rate when you eventually withdraw. Factor this into your timing decisions.
- Check the Bailey exclusion: If you retired from federal, state, or certain local government employment in North Carolina, you may qualify for the Bailey exclusion — which can fully exempt your retirement income from state taxes. Consult a NC-licensed CPA before structuring withdrawals.
- $300,000 guaranty limit gives you a bit more room: NC’s $300,000 limit means you can place slightly more with a single A-rated carrier than in states with $250,000 limits before you need to split.
- Work with an independent broker: The Charlotte, Raleigh-Durham, and Asheville markets have strong independent insurance broker communities. An independent broker can shop 20+ carriers for your best available rate.
- Use the free-look period: North Carolina requires at least 10 days to review and cancel your contract for a full refund of premium. Read the full contract during this window.
Frequently Asked Questions
Does North Carolina tax annuity income?
Yes, at a flat 4.75% rate as of 2024 — one of the lower rates in the eastern U.S. The rate is scheduled to decline further in coming years. Qualifying government retirees may be fully exempt under the Bailey exclusion.
What is the best annuity rate in North Carolina today?
The best MYGA rates available to North Carolina 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 North Carolina Guaranty Association cover?
North Carolina’s guaranty association protects up to $300,000 in annuity present value per person, per insurance company — higher than the $250,000 standard in most states. For investments over $300,000, spread across multiple A-rated carriers.
What is the free-look period for annuities in North Carolina?
North Carolina requires a minimum 10-day free-look period for annuity contracts. During this window you can return the contract for a full refund of your premium.
Who regulates annuities in North Carolina?
The North Carolina Department of Insurance (NCDOI) licenses and regulates all insurance carriers and agents in the state. Verify licenses and file complaints at ncdoi.gov or by calling 1-855-408-1212.
What is the Bailey exclusion in North Carolina?
The Bailey exclusion allows qualifying North Carolina retirees who received retirement income from certain government employment (federal, state, or local government jobs vested before August 1989) to fully exclude that retirement income from North Carolina state income tax. If your annuity was funded through such employment, you may qualify. A NC CPA can advise on your specific situation.
What happens to my annuity if my insurance company fails in North Carolina?
The North Carolina Life and Health Insurance Guaranty Association covers up to $300,000 of your annuity’s present value if your licensed carrier becomes insolvent. Protection is automatic — no enrollment required. Stick with AM Best A-rated carriers to minimize insolvency risk.