[aj_hero title=”Best Annuity Rates in North Dakota (2026)” breadcrumb=”Rates / North Dakota”]
North Dakota has one of the lowest state income tax burdens in the country for retirees. In 2023, the state restructured its income tax to two very low brackets – 1.95% and 2.5% – making North Dakota’s top rate lower than all but a handful of states. On top of that, North Dakota has fully exempted Social Security income from state income tax. For retirees building guaranteed income from savings, a fixed annuity in North Dakota delivers strong after-tax returns in a low-tax environment.
The rate table below shows today’s best MYGA rates available to North Dakota 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% | |
| 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% | |
| American General Life Insurance Company | American Pathway VisionMYG 4 | 4.65% | 4 yr | $100,000 | 15% |
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% | |
| 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% | |
| 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% | |
| 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% | |
| 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% | |
| 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% | |
| 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 | 5.65%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% | |
| 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.
- North Dakota’s income tax is among the lowest in the country: 1.95% on income up to $44,725 and 2.5% on income above that for single filers (2026 approximation). Most retirees pay only 1.95% on annuity withdrawals.
- North Dakota fully exempts Social Security income from state income tax, further reducing the total state tax burden on retirees.
- The North Dakota Life and Health Insurance Guaranty Association protects annuity values up to $250,000 per person, per insurer if a licensed carrier becomes insolvent.
- North Dakota has no estate tax and no inheritance tax. Annuity death benefits pass directly to named beneficiaries outside of probate.
- North Dakota requires a minimum 10-day free-look period on all annuity contracts.
Are Fixed Annuities a Good Choice in North Dakota?
North Dakota’s combination of very low income tax rates, Social Security exemption, and no estate tax makes it one of the more favorable states in the Upper Midwest for retirees who hold fixed annuities. The state income tax on annuity withdrawals is so low – 1.95% for most retirees – that the effective cost of state taxation is minimal compared to the guaranteed growth advantage of a MYGA over bank deposits.
Consider Helen, age 67, in Fargo. She has $180,000 in a savings account earning 3.20%. She moves it into a 5-year MYGA at 5.15%. At maturity, her account reaches approximately $231,637 – a guaranteed gain of $51,637 with no market risk. When Helen begins withdrawals, North Dakota taxes those withdrawals at only 1.95% (assuming her total income stays below the upper bracket). On $51,637 of gains, she owes approximately $1,007 in North Dakota state income tax over the life of the annuity. Compare that to a state with a 6% income tax, where the same gain would cost $3,098 in state taxes. North Dakota’s low-rate environment is a genuine and quantifiable advantage.
North Dakota has no estate tax and no inheritance tax. Named annuity beneficiaries receive the contract value outside of probate with no North Dakota state transfer tax.
North Dakota Guaranty Association: How Your Annuity Is Protected
The North Dakota Life and Health Insurance Guaranty Association protects North Dakota policyholders if a licensed insurance carrier becomes insolvent. Coverage is automatic – no separate enrollment and no additional cost.
| Coverage Type | North Dakota 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 the North Dakota guaranty system.
North Dakota Life and Health Insurance Guaranty Association
Website: ndiga.com
How North Dakota Taxes Annuity Income
North Dakota taxes income at two very low brackets: 1.95% and 2.5%. Social Security income is fully exempt from state tax. Most retirees with moderate annuity withdrawals will stay within the 1.95% bracket, making North Dakota one of the most tax-favorable states for annuity owners.
| Annuity Type | North Dakota Tax Treatment | State Rate |
|---|---|---|
| Non-qualified (after-tax funds) | Gain portion taxed at North Dakota income tax rates | 1.95% or 2.5% |
| Qualified (IRA / 401(k) rollover) | 100% of each distribution taxable at North Dakota rates | 1.95% or 2.5% |
| Social Security income | Fully exempt from North Dakota state income tax | 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 |
North Dakota’s 1.95% bracket applies to taxable income up to approximately $44,725 for single filers and $74,750 for married filing jointly (2026 approximation). The 2.5% rate applies above those thresholds. For most retirees with moderate annuity income, the effective North Dakota income tax on withdrawals is under 2% – genuinely low by any state comparison. Withdrawals before age 59½ still trigger the 10% federal early withdrawal penalty and federal ordinary income tax on the gain, in addition to the modest North Dakota state rate.
North Dakota Insurance Department
The North Dakota Insurance Department licenses and regulates all insurance carriers and agents operating in North Dakota. Before buying any annuity, verify that the carrier is licensed in North Dakota and your agent holds an active North Dakota life insurance license.
| Contact | Details |
|---|---|
| Agency | North Dakota Insurance Department |
| Consumer helpline | 1-800-247-0560 |
| Website | insurance.nd.gov |
| License lookup | Available at insurance.nd.gov |
Tips for Buying an Annuity in North Dakota
- North Dakota’s low rates make longer MYGA terms very attractive: Because state taxes on withdrawals are so low, the main optimization in North Dakota is capturing the highest rate for the longest term you can commit to. A 7-year MYGA at 5.10% beats a 5-year MYGA at 5.25% in most scenarios when factoring in reinvestment risk at maturity.
- Social Security exemption simplifies income planning: With Social Security off the taxable income table, most North Dakota retirees’ only taxable income is from annuity withdrawals and private pensions. This makes bracket management straightforward.
- Use an independent broker to compare the national field: Not every national MYGA carrier is licensed in North Dakota. An independent broker who works regularly in the state knows which carriers offer the best rates with North Dakota product approval.
- Keep individual carrier exposure under $250,000: Even in a low-tax, low-cost state, guaranty fund limits matter for large balances. Divide investments over $250,000 across multiple A-rated carriers.
- Review the contract during the 10-day free-look: North Dakota requires 10 days. Read the full surrender charge schedule and confirm the annual free-withdrawal provision before the window closes.
Frequently Asked Questions
Does North Dakota tax annuity income?
Yes, but at very low rates. North Dakota taxes annuity withdrawals at its state income tax rates: 1.95% on income up to approximately $44,725 (single filers) and 2.5% on income above that threshold. Social Security income is fully exempt from North Dakota state income tax. For most retirees, the effective North Dakota state tax on annuity withdrawals is under 2% – among the lowest in the country.
What is the best annuity rate in North Dakota right now?
As of 2026, the best MYGA rates available to North Dakota residents from A-rated carriers range from approximately 4.50% to 5.50% depending on term. Five-year terms typically offer the strongest rates for most buyers. The rate table above shows current figures updated daily.
How much does the North Dakota Guaranty Association cover?
The North Dakota Life and Health Insurance Guaranty Association protects up to $250,000 in annuity present value per person, per insurance company. For investments over $250,000, divide funds across multiple A-rated carriers to maximize guaranty fund protection at each insurer.
Who regulates annuities in North Dakota?
The North Dakota Insurance Department licenses and regulates all insurance carriers and agents in North Dakota. Verify carrier and agent licenses at insurance.nd.gov or by calling 1-800-247-0560.
Is there an inheritance or estate tax on annuities in North Dakota?
No. North Dakota has no estate tax and no inheritance tax. Named annuity beneficiaries receive the full contract value outside of probate with no North Dakota state-level transfer tax. Federal estate tax rules apply if the total estate exceeds the federal exemption threshold (over $13 million per individual as of 2026), but the vast majority of North Dakota retirees are not affected.