Best Annuity Rates in Ohio (2026)

Ohio is one of the largest retirement markets in the Midwest — with Columbus, Cleveland, Cincinnati, and a dense network of independent advisors serving pre-retirees across the state. Ohio’s graduated income tax tops out at just 3.5% for most earners, making annuity withdrawals relatively tax-efficient compared to northeastern states. If you want to understand how annuities work before comparing rates, start there.

Below are today’s best MYGA rates available to Ohio residents, filtered to A-rated carriers only, updated daily.

Are Fixed Annuities a Good Investment in Ohio?

Ohio’s low top tax rate of 3.5% on income over $100,000 — and zero state tax on the first $26,050 of income — makes annuity withdrawals meaningfully less expensive than in states like Oregon or Minnesota. For most Ohio retirees drawing $40,000–$80,000 per year from retirement accounts, the effective Ohio state rate is around 2.75%.

Here’s a concrete example: Carol, age 65, lives in Columbus with $175,000 in a CD maturing at 4.00%. She rolls it into a 5-year MYGA at 5.05%. At maturity, her account reaches approximately $224,139. The $49,139 gain — when withdrawn — faces Ohio’s 2.75% bracket: a state tax bill of roughly $1,351. In a taxable CD, she’d have been paying Ohio tax on the interest every year during accumulation. The deferral advantage reduces her total state tax bill and keeps more money compounding.

Ohio has no estate tax and no inheritance tax — both were eliminated by 2013. Annuity death benefits pass to your beneficiaries free of Ohio-level taxation.

Ohio Guaranty Association: How Your Annuity Is Protected

The Ohio Life and Health Insurance Guaranty Association (OLHIGA) protects Ohio policyholders if a licensed insurer becomes insolvent. Coverage is automatic — no enrollment and no extra cost required.

For portfolios over $250,000, spread across two or more A-rated carriers. Limits apply per insurer — two carriers give you two separate $250,000 pools of protection.

Ohio Life and Health Insurance Guaranty Association
Website: olhiga.org

How Ohio Taxes Annuity Income

Ohio taxes annuity income as ordinary income under its graduated rate structure. Rates range from 0% on the first $26,050 to 2.75% on income between $26,050 and $100,000, and 3.5% on income above $100,000. Ohio does not have a separate early withdrawal penalty — federal rules apply.

For non-qualified (after-tax) annuities, only the gain is taxed — your original premium is returned tax-free via the exclusion ratio. Ohio follows federal tax rules on this treatment. Ohio has no estate tax and no inheritance tax.

Ohio Department of Insurance

The Ohio Department of Insurance (ODI) licenses and regulates all insurance carriers and agents operating in Ohio. Before purchasing an annuity, verify the carrier’s license and your agent’s license through ODI’s online lookup. Consumer complaints are handled through ODI’s Consumer Services division.

Tips for Buying an Annuity in Ohio

• Ohio’s low tax brackets benefit most retirees: Most Ohio retirees drawing $40,000–$80,000 per year fall in the 2.75% bracket — well below the national average state income tax on retirement income.
• Work with an independent broker: Ohio has a large independent insurance market, especially in Columbus, Cleveland, and Cincinnati. Independent brokers can compare 20+ carriers for your best available rate.
• Don’t exceed $250,000 per carrier: For portfolios over $250,000, use multiple A-rated carriers to maximize guaranty fund protection.
• Use the free-look period: Ohio requires at least 10 days to review and cancel any annuity contract for a full premium refund. Read the full contract during this window.
• No estate tax is a genuine benefit: Ohio repealed its estate tax in 2013. Annuity death benefits and account values pass to heirs without Ohio-level estate taxation.