Key Takeaways
- Rhode Island has a top state income tax rate of 5.99%, annuity withdrawals are taxed as ordinary income at this graduated rate
- The Rhode Island Life and Health Insurance Guaranty Association protects annuity cash values up to $250,000 per insurer
- Social Security benefits are exempt from Rhode Island state income tax if your adjusted gross income is under $86,350 (single) or $107,950 (married filing jointly) as of 2026
- Only carriers rated A- or better are shown in the rate table below, all licensed and regulated by the Rhode Island Department of Business Regulation
Rhode Island is a small but densely populated state where the cost of living runs high and retirees are increasingly reliant on guaranteed income sources. Fixed annuities, particularly MYGAs, appeal to Rhode Island residents who want a predictable, tax-deferred return without the volatility of the stock market. The state’s 5.99% top income tax rate applies to annuity withdrawals, making tax-deferred growth especially valuable during the accumulation phase.
2-Year MYGA Rates
| Carrier | Product | AM Best | Rate | Term | Min Premium | Free Withdrawal |
|---|---|---|---|---|---|---|
| Oceanview Life and Annuity | Harbourview 2 | 5.15%Top Rate | 2 yr | $70,000 | 10% | |
| Oceanview Life and Annuity | Harbourview 2 (CA) | 5.15% | 2 yr | $70,000 | 10% | |
| Axonic Insurance | Waypoint 2 MYGA | 5.10% | 2 yr | $100,000 | 10% | |
| GBU Life | Asset Guard Select 2 | 5.05% | 2 yr | $25,000 | 10% | |
| Aspida | Synergy Choice 2 | 4.80% | 2 yr | $100,000 | 0% | |
| Mass Mutual | Premier Voyage 2 | 4.70% | 2 yr | $1,000,000 | 10% | |
| Americo | Platinum Assure 2 | 4.15% | 2 yr | $25,000 | 3% |
3-Year MYGA Rates
| Carrier | Product | AM Best | Rate | Term | Min Premium | Free Withdrawal |
|---|---|---|---|---|---|---|
| Ibexis | MYGA Plus 3 (Simple Interest) SI | 6.15%Top Rate | 3 yr | $100,000 | 10% | |
| Ibexis | MYGA Plus 3 (Simple Interest) CA SI | 6.05% | 3 yr | $100,000 | 10% | |
| American National Insurance Company | Palladium MYG MAX 3 | 5.90% | 3 yr | $250,000 | 0% | |
| Knighthead Life | Staysail 3 (Simple Interest) SI | 5.85% | 3 yr | $100,000 | 0% | |
| Knighthead Life | Staysail 3 CA (Simple Interest) SI | 5.85% | 3 yr | $100,000 | 0% | |
| American National Insurance Company | Palladium MYG Annuity 3 | 5.75% | 3 yr | $250,000 | 10% | |
| Athene IA | Athene Max Rate 3 | 5.75% | 3 yr | $100,000 | Interest Only | |
| Athene IA | Athene Max Rate 3 (state specific) | 5.75% | 3 yr | $100,000 | Interest Only |
4-Year MYGA Rates
| Carrier | Product | AM Best | Rate | Term | Min Premium | Free Withdrawal |
|---|---|---|---|---|---|---|
| Oxford Life Insurance Company | Multi-Select 4 | 5.75%Top Rate | 4 yr | $20,000 | 10% | |
| Americo | Platinum Assure 4 | 5.70% | 4 yr | $25,000 | 5% | |
| Oceanview Life and Annuity | Harbourview 4 | 5.70% | 4 yr | $70,000 | 10% | |
| Oceanview Life and Annuity | Harbourview 4 (CA) | 5.70% | 4 yr | $70,000 | 10% | |
| Clear Spring Life | Preserve MYGA 4 | 5.60% | 4 yr | $100,000 | 10% | |
| Mass Mutual | Premier Voyage 4 | 5.55% | 4 yr | $1,000,000 | 10% | |
| Guardian Insurance & Annuity Co. | Guardian Fixed Target Annuity 4 | 5.50% | 4 yr | $100,000 | 10% | |
| Nationwide Life Insurance Company | Secure Growth 4 MVA | 5.50% | 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 | 6.65%Top Rate | 5 yr | $100,000 | 0% | |
| Knighthead Life | Staysail 5 CA (Simple Interest) SI | 6.65% | 5 yr | $100,000 | 0% | |
| Ibexis | MYGA Plus 5 (Simple Interest) SI | 6.60% | 5 yr | $100,000 | 10% | |
| Ibexis | MYGA Plus 5 (Simple Interest) CA SI | 6.50% | 5 yr | $100,000 | 10% | |
| Aspida | Synergy Choice 5 | 6.30% | 5 yr | $100,000 | 0% | |
| Axonic Insurance | Waypoint 5 MYGA | 6.10% | 5 yr | $100,000 | 10% | |
| Athene IA | Athene Max Rate 5 | 6.05% | 5 yr | $100,000 | Interest Only | |
| Athene IA | Athene Max Rate 5 (state specific) | 6.00% | 5 yr | $100,000 | Interest Only |
6-Year MYGA Rates
| Carrier | Product | AM Best | Rate | Term | Min Premium | Free Withdrawal |
|---|---|---|---|---|---|---|
| Oceanview Life and Annuity | Harbourview 6 | 6.10%Top Rate | 6 yr | $70,000 | 10% | |
| Oceanview Life and Annuity | Harbourview 6 (CA) | 5.95% | 6 yr | $70,000 | 10% | |
| Oxford Life Insurance Company | Multi-Select 6 | 5.95% | 6 yr | $20,000 | 10% | |
| Americo | Platinum Assure 6 | 5.90% | 6 yr | $25,000 | 5% | |
| Guardian Insurance & Annuity Co. | Guardian Fixed Target Annuity 6 | 5.80% | 6 yr | $100,000 | 10% | |
| Mass Mutual | Premier Voyage 6 | 5.75% | 6 yr | $1,000,000 | 10% | |
| Clear Spring Life | Preserve MYGA 6 | 5.70% | 6 yr | $100,000 | 10% | |
| American General Life Insurance Company | American Pathway VisionMYG 6 | 5.40% | 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 | 7.10%Top Rate | 7 yr | $100,000 | 0% | |
| Knighthead Life | Staysail 7 CA (Simple Interest) SI | 7.10% | 7 yr | $100,000 | 0% | |
| Ibexis | MYGA Plus 7 (Simple Interest) SI | 6.85% | 7 yr | $100,000 | 10% | |
| Ibexis | MYGA Plus 7 (Simple Interest) CA SI | 6.75% | 7 yr | $100,000 | 10% | |
| Aspida | Synergy Choice 7 | 6.35% | 7 yr | $100,000 | 0% | |
| Athene IA | Athene Max Rate 7 | 6.15% | 7 yr | $100,000 | Interest Only | |
| Athene IA | Athene Max Rate 7 (state specific) | 6.10% | 7 yr | $100,000 | Interest Only | |
| Knighthead Life | Staysail 7 CA with Liquidity (Simple Interest) SI | 6.05% | 7 yr | $100,000 | 10% |
8-Year MYGA Rates
| Carrier | Product | AM Best | Rate | Term | Min Premium | Free Withdrawal |
|---|---|---|---|---|---|---|
| Oxford Life Insurance Company | Multi-Select 8 | 5.90%Top Rate | 8 yr | $20,000 | 10% | |
| Clear Spring Life | Preserve MYGA 8 | 5.70% | 8 yr | $100,000 | 10% | |
| Pacific Guardian Life | Diamond Head 8 | 5.40% | 8 yr | $10,000 | 10% | |
| American National Insurance Company | Palladium MYG Annuity 8 | 5.30% | 8 yr | $250,000 | 10% | |
| Guaranty Income Life | Guaranty Rate Lock 8 | 3.90% | 8 yr | $250,000 | 5% |
9-Year MYGA Rates
| Carrier | Product | AM Best | Rate | Term | Min Premium | Free Withdrawal |
|---|---|---|---|---|---|---|
| Oxford Life Insurance Company | Multi-Select 9 | 5.95%Top Rate | 9 yr | $20,000 | 10% | |
| Capitol Life Insurance Company | Heritage Elite 9 | 5.75% | 9 yr | $10,000 | 0% | |
| Liberty Bankers Life | Heritage Elite 9 | 5.75% | 9 yr | $10,000 | 0% | |
| Capitol Life Insurance Company | Heritage Premier 9 | 5.70% | 9 yr | $10,000 | Interest Only | |
| Clear Spring Life | Preserve MYGA 9 | 5.70% | 9 yr | $100,000 | 10% | |
| Liberty Bankers Life | Heritage Premier 9 | 5.70% | 9 yr | $10,000 | Interest Only | |
| Capitol Life Insurance Company | Heritage Classic 9 | 5.65% | 9 yr | $10,000 | 10% | |
| Liberty Bankers Life | Heritage Classic 9 | 5.65% | 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 | 6.20%Top Rate | 10 yr | $70,000 | 10% | |
| Oceanview Life and Annuity | Harbourview 10 (CA) | 6.05% | 10 yr | $70,000 | 10% | |
| Lincoln Financial | Lincoln MYGuarantee Plus 10 | 6.00% | 10 yr | $100,000 | 10% | |
| Oxford Life Insurance Company | Multi-Select 10 | 5.95% | 10 yr | $20,000 | 10% | |
| Reliance Standard Life | Reliance Guarantee - 10 | 5.90% | 10 yr | $20,000 | 10% | |
| Delaware Life | Pinnacle Plus MYGA 10 | 5.85% | 10 yr | $100,000 | 10% | |
| Royal Neighbors of America | MYGA 10 Year | 5.80% | 10 yr | $100,000 | Interest Only | |
| American General Life Insurance Company | American Pathway VisionMYG 10 | 5.75% | 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.
How Rhode Island Taxes Annuity Income
Rhode Island uses a graduated state income tax structure with a top rate of 5.99% as of 2026. Annuity withdrawals, whether from a MYGA, fixed annuity, or variable annuity, are taxed as ordinary income in the year distributed. For qualified annuities (held inside an IRA or 401(k)), the full withdrawal amount is taxable. For non-qualified annuities, only the earnings portion is subject to tax, the return of your principal is not.
Rhode Island does not offer a blanket exclusion for retirement income or annuity distributions. However, Social Security benefits are fully exempt from state income tax for residents whose adjusted gross income falls below $86,350 (single filers) or $107,950 (married filing jointly). Residents above those thresholds pay state tax on a portion of their Social Security as well. Careful withdrawal planning, particularly around which accounts to draw from and in what order, can help minimize total state income tax liability.
The federal 10% early withdrawal penalty applies to annuity distributions taken before age 59½, on top of ordinary income taxes at both the federal and state level. Rhode Island conforms to most federal tax treatment of annuities, so there are no separate state-specific penalty rules to navigate.
Rhode Island Guaranty Association Coverage
The Rhode Island Life and Health Insurance Guaranty Association (RILIGA) provides a safety net for annuity policyholders if a licensed insurer becomes insolvent. Coverage limits are $250,000 for annuity cash values per insurer per policyholder. This protection is automatic, you do not need to register or apply, and applies to all annuities issued by Rhode Island-licensed insurance carriers.
RILIGA protection is not the same as FDIC insurance, and it does not protect against investment losses in variable annuities. However, for fixed and MYGA annuities, which guarantee your principal, the guaranty association provides meaningful backstop protection. Spreading large sums across multiple highly-rated carriers is a strategy some advisors use for balances above $250,000.
Best Annuity Strategies for Rhode Island Residents
Rhode Island’s 5.99% income tax rate means that tax deferral inside a non-qualified annuity carries real value. Every year your earnings compound without triggering a state tax event is a year of growth that would otherwise have been reduced. For retirees holding large taxable investment accounts, rolling gains into a non-qualified MYGA can meaningfully reduce annual tax drag.
For retirees near the Social Security AGI exemption threshold ($86,350 single), controlling annuity withdrawal amounts is critical. Taking too large a withdrawal in a single year can push income above the threshold, triggering state tax on Social Security benefits that would otherwise be exempt. Spreading withdrawals across multiple years, or coordinating with Roth conversions, can help keep AGI in check.
Rhode Island residents with 401(k) or IRA balances should also consider the value of a qualified MYGA as part of a broader RMD strategy. Parking a portion of IRA funds in a multi-year guaranteed annuity locks in today’s rates and simplifies planning around required minimum distributions beginning at age 73.
Frequently Asked Questions
Are annuities taxable in Rhode Island?
Yes. Rhode Island taxes annuity withdrawals as ordinary income at rates up to 5.99%. For non-qualified annuities, only the earnings portion is taxable, your original principal is returned tax-free. Qualified annuity withdrawals (from IRAs or 401(k)s) are fully taxable.
What is the Rhode Island annuity guaranty limit?
The Rhode Island Life and Health Insurance Guaranty Association covers annuity cash values up to $250,000 per insurer per policyholder. This protection applies automatically to all annuities issued by Rhode Island-licensed carriers.
What are today’s best MYGA rates available in Rhode Island?
The rate table above shows current MYGA rates from carriers rated A- or better available in Rhode Island, updated daily. Top rates for 5-year terms currently reach 6.65%; the table shows every product.
Is Social Security taxed in Rhode Island?
Social Security benefits are exempt from Rhode Island income tax if your AGI is $86,350 or less (single) or $107,950 or less (married filing jointly) in 2026. Above those thresholds, a portion of Social Security becomes taxable at the state level.
