South Carolina has become one of the top retirement destinations on the East Coast — with Hilton Head, Myrtle Beach, Charleston, and the Upstate drawing retirees from across the country. A generous retirement income deduction, $300,000 in annuity guaranty protection (above the national standard), and a declining top income tax rate make South Carolina one of the more favorable southeastern states for annuity buyers. Before comparing today’s rates, see how annuities work and which type makes the most sense for you.
Below are today’s best MYGA rates available to South Carolina residents, filtered to A-rated carriers only, 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% | |
| Oceanview Life and Annuity | Harbourview 2 | 4.80% | 2 yr | $70,000 | 10% | |
| GBU Life | Asset Guard Select 2 | 4.75% | 2 yr | $25,000 | 10% | |
| Mass Mutual | Premier Voyage 2 | 3.75% | 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% | |
| 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% | |
| 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% | |
| Athene IA | Athene Max Rate 3 (state specific) | 5.00% | 3 yr | $100,000 | 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 | 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 | 4.75% | 4 yr | $25,000 | 10% | |
| Mass Mutual | Premier Voyage 4 | 4.70% | 4 yr | $1,000,000 | 10% | |
| Corebridge Financial | Corebridge Pathway Choicesm Fixed 4 Annuity | 4.60% | 4 yr | $100,000 | 10% | |
| Guardian Insurance & Annuity Co. | Guardian Fixed Target Annuity 4 | 4.60% | 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 | 5.75% | 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% | |
| 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 | |
| North American Company | NAC Guarantee Plus 5 | 5.35% | 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 | 5.25% | 6 yr | $100,000 | 10% | |
| Pacific Guardian Life | Diamond Head 6 | 5.20% | 6 yr | $10,000 | 10% | |
| Mass Mutual | Premier Voyage 6 | 5.05% | 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 | 4.45% | 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 | 5.95% | 7 yr | $100,000 | 10% | |
| Aspida | Synergy Choice 7 | 5.50% | 7 yr | $100,000 | 0% | |
| Axonic Insurance | Waypoint 7 MYGA | 5.50% | 7 yr | $100,000 | 10% | |
| 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 |
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 | |
| 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% | |
| American National Insurance Company | Palladium MYG Annuity 10 | 5.20% | 10 yr | $250,000 | 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.
Key Takeaways
- South Carolina residents age 65+ can deduct up to $15,000 of retirement income per person from state taxes — reducing the effective tax burden on annuity withdrawals
- South Carolina’s guaranty association covers up to $300,000 in annuity present value — higher than the $250,000 standard in most states
- South Carolina’s top income tax rate is declining — currently 6.4% and scheduled to drop further through 2027
- South Carolina law requires a minimum 10-day free-look period for annuity contracts
- South Carolina has no state estate tax and no inheritance tax
Are Fixed Annuities a Good Investment in South Carolina?
South Carolina’s combination of a declining tax rate, a $15,000 retirement income deduction for seniors, and a $300,000 guaranty limit makes it genuinely competitive among southeastern retirement states. The tax rate has been phasing down from 7% to a target of 6.0% by 2027 — meaning annuity income you defer today may be taxed at a lower rate when you withdraw.
Here’s an example: Joan, age 69, lives in Hilton Head and begins drawing $40,000 per year from her IRA-funded MYGA. She qualifies for South Carolina’s $15,000 retirement income deduction, reducing her taxable annuity income to $25,000. At South Carolina’s current 6.4% rate on that amount, her state tax bill is $1,600 — not $2,560 on the full $40,000. The deduction effectively lowers her real tax rate on annuity income to 4.0% in this scenario. That’s a meaningful difference, especially over a multi-decade retirement.
South Carolina has no estate tax and no inheritance tax, so annuity death benefits pass to beneficiaries without South Carolina-level taxation.
South Carolina Guaranty Association: How Your Annuity Is Protected
The South Carolina Life and Accident and Health Insurance Guaranty Association (SCLAHIGA) protects South Carolina policyholders if a licensed insurer becomes insolvent. At $300,000, South Carolina’s annuity protection is above the $250,000 standard in most states.
| Coverage Type | South 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 |
South Carolina’s $300,000 limit gives you a bit more room per carrier than most states. For portfolios over $300,000, split across multiple A-rated carriers.
South Carolina Life and Accident and Health Insurance Guaranty Association
Website: sclahiga.com
How South Carolina Taxes Annuity Income
South Carolina taxes annuity income as ordinary income under a graduated rate structure (currently topping at 6.4%, declining to 6.0% by 2027). Residents age 65 and older can deduct up to $15,000 of retirement income per person annually, reducing their effective state tax rate on annuity withdrawals.
| Annuity Type | South Carolina Tax Treatment | State Rate |
|---|---|---|
| Non-qualified (after-tax funds) | Only gains taxed; principal excluded via exclusion ratio | Up to 6.4% |
| Qualified (IRA / 401(k) rollover) | 100% taxable; $15,000 retirement deduction (age 65+) reduces burden | Up to 6.4% |
| Retirement income deduction (age 65+) | Up to $15,000 per person excluded from SC income tax | 0% on excluded amount |
| 1035 Exchange | No South Carolina tax triggered on the exchange itself | N/A |
South Carolina has no state estate tax and no inheritance tax. The declining rate trajectory (6.4% → 6.0% by 2027) means future annuity withdrawals will be taxed at lower rates than today — a modest but real benefit for long-term deferral strategies.
South Carolina Department of Insurance
The South Carolina Department of Insurance (SCDOI) licenses and regulates all insurance carriers and agents operating in South Carolina. Before purchasing an annuity, verify the carrier’s license and your agent’s license through SCDOI’s online lookup.
| Contact | Details |
|---|---|
| Agency | South Carolina Department of Insurance (SCDOI) |
| Consumer services | 803-737-6160 |
| Toll-free | 1-800-768-3467 |
| Website | doi.sc.gov |
| License verification | SCDOI license lookup |
Tips for Buying an Annuity in South Carolina
- Use the $15,000 retirement deduction: If you’re 65 or older, South Carolina lets you deduct $15,000 of retirement income per person per year. A married couple can deduct $30,000 combined. Structure withdrawals to maximize this deduction each year.
- The declining rate is working in your favor: South Carolina’s top rate is legally scheduled to decline from 6.4% toward 6.0% by 2027. If you defer income now and draw later, you’ll pay at a lower rate.
- $300,000 guaranty limit gives extra room: South Carolina’s above-average guaranty limit means you can keep slightly more with a single A-rated carrier while staying fully covered. Still split for portfolios over $300,000.
- Work with an independent broker: The Hilton Head, Charleston, and Myrtle Beach markets have active independent insurance broker communities serving retirees. Independent brokers compare 20+ carriers for your best rate.
- Use the free-look period: South Carolina requires at least 10 days to review and cancel for a full premium refund.
Frequently Asked Questions
Does South Carolina tax annuity income?
Yes, at graduated rates up to 6.4% (declining to 6.0% by 2027). However, residents age 65 and older can deduct up to $15,000 of retirement income per person annually — reducing the effective rate on annuity withdrawals meaningfully.
What is the best annuity rate in South Carolina today?
The best MYGA rates available to South 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.
How much does the South Carolina Guaranty Association cover?
The South Carolina guaranty association protects up to $300,000 in annuity present value per person, per insurance company — above the $250,000 standard in most states. For investments over $300,000, spread across multiple A-rated carriers.
What is the $15,000 retirement income deduction in South Carolina?
South Carolina residents age 65 and older can deduct up to $15,000 of retirement income — including qualifying annuity payments — from their state income tax return each year. Married couples can each claim the deduction for a combined $30,000 exclusion per year.
What is the free-look period for annuities in South Carolina?
South Carolina requires a minimum 10-day free-look period for annuity contracts. You can cancel and receive a full premium refund within that window.
Who regulates annuities in South Carolina?
The South Carolina Department of Insurance (SCDOI) licenses and regulates all carriers and agents. Verify licenses at doi.sc.gov or call 1-800-768-3467.
What happens to my annuity if my insurance company fails in South Carolina?
The South Carolina Life and Accident and Health Insurance Guaranty Association covers up to $300,000 of your annuity’s present value if your carrier becomes insolvent. Protection is automatic — no enrollment required.