Tennessee eliminated its Hall Income Tax on investment income effective January 1, 2021 — joining the growing list of states with zero state income tax. For annuity buyers, that means withdrawals from any annuity type are taxed only at the federal level. Combined with a growing retirement market in Nashville, Memphis, Chattanooga, and Knoxville, Tennessee is one of the most tax-favorable states for annuity owners in the Southeast. Start by understanding how annuities work before comparing today’s rates.
Below are today’s best MYGA rates available to Tennessee 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 | 3.45% | 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% | |
| Axonic Insurance | Waypoint 3 MYGA | 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% | |
| 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 |
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% | |
| Axonic Insurance | Waypoint 5 MYGA | 5.65% | 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% |
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% | |
| 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 |
|---|---|---|---|---|---|---|
| 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% | |
| Axonic Insurance | Waypoint 10 MYGA | 5.50% | 10 yr | $100,000 | 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% |
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
- Tennessee has no state income tax as of 2021 — annuity withdrawals face only federal taxation
- The Tennessee Life and Health Insurance Guaranty Association protects up to $250,000 in annuity present value per person, per insurer
- Tennessee law requires a minimum 10-day free-look period (20 days for buyers age 65 and older)
- Tennessee has no state estate tax and no inheritance tax — annuity death benefits pass to heirs free of state-level taxation
- Tennessee is one of the fastest-growing retirement states in the country — Nashville and surrounding communities attract retirees from high-tax states
Are Fixed Annuities a Good Investment in Tennessee?
Tennessee’s elimination of its Hall Tax in 2021 completed its transition to a zero-income-tax state. This is one of the most significant tax advantages for annuity buyers: every dollar you withdraw from a MYGA, fixed annuity, or income annuity stays free of state-level taxation. Only federal income tax applies.
Here’s a concrete example: Richard, age 67, moved from Illinois to Nashville and rolled $200,000 from his IRA into a 5-year MYGA at 5.10%. At maturity, his account reaches approximately $256,386. When he draws it down, Tennessee collects zero state income tax. Compare that to his former state of Illinois, where qualified IRA income is exempt — but for states like New York (4%–10.9%) or Oregon (8.75%–9.9%), the savings would be substantial. For retirees relocating from high-tax states, Tennessee’s zero rate is a genuine financial win.
Tennessee also has no estate tax and no inheritance tax — annuity death benefits pass to your beneficiaries with no Tennessee-level deduction.
Tennessee Guaranty Association: How Your Annuity Is Protected
The Tennessee Life and Health Insurance Guaranty Association (TNLHIGA) protects Tennessee policyholders if a licensed insurer becomes insolvent. Coverage is automatic — no enrollment and no extra cost required.
| Coverage Type | Tennessee 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 limits above |
For annuity portfolios over $250,000, split across two or more A-rated carriers. Limits apply per insurer — two carriers provide two separate $250,000 pools of coverage.
Tennessee Life and Health Insurance Guaranty Association
Website: tnlifega.org
How Tennessee Taxes Annuity Income
Tennessee has no personal income tax as of January 1, 2021. The Hall Tax — which previously taxed interest and dividend income — was phased out entirely. Annuity withdrawals of all types face zero Tennessee state income tax.
| Annuity Type | Tennessee Tax Treatment | State Rate |
|---|---|---|
| Non-qualified (after-tax funds) | Tennessee collects nothing; federal tax on gains applies | 0% |
| Qualified (IRA / 401(k) rollover) | Tennessee collects nothing; federal tax on 100% of distributions applies | 0% |
| Roth IRA annuity | Qualified distributions are fully tax-free at both federal and state levels | 0% |
| 1035 Exchange | No Tennessee or federal tax triggered on the exchange itself | N/A |
Tennessee has no state estate tax and no inheritance tax. Annuity death benefits pass to beneficiaries entirely free of Tennessee-level taxation.
Tennessee Department of Commerce and Insurance
The Tennessee Department of Commerce and Insurance (TDCI) licenses and regulates all insurance carriers and agents operating in Tennessee. Before purchasing an annuity, verify both the carrier’s license and your agent’s license through TDCI’s online lookup.
| Contact | Details |
|---|---|
| Agency | Tennessee Dept. of Commerce and Insurance (TDCI) |
| Consumer services | 615-741-2241 |
| Toll-free | 1-800-342-4029 |
| Website | tn.gov/commerce/insurance |
| License verification | TDCI license lookup |
Tips for Buying an Annuity in Tennessee
- Take advantage of the 20-day free-look for seniors: Tennessee gives buyers age 65 and older a 20-day free-look period — and 10 days for others. Read the full contract during this window and cancel for a full refund if anything doesn’t match what you were told.
- Zero state tax makes the math simple: Your after-tax annuity return equals your pre-tax rate minus only your federal bracket. For a retiree in the 22% federal bracket earning 5.10%, the after-tax return is approximately 3.98% — the full amount minus federal only.
- Work with an independent broker: Tennessee has a growing independent insurance market, especially in the Nashville and Knoxville metros. Independent brokers compare 20+ carriers for your best available rate.
- Don’t exceed $250,000 per carrier: For portfolios over $250,000, use two or more A-rated carriers to maximize guaranty fund coverage on the full balance.
- Consider Tennessee for relocation planning: If you’re deciding between states for retirement, Tennessee’s zero state income tax and zero estate/inheritance tax combination is one of the strongest in the country for annuity owners.
Frequently Asked Questions
Does Tennessee tax annuity income?
No. Tennessee eliminated its Hall Tax effective January 1, 2021, and has no personal income tax. Annuity withdrawals — from any annuity type — are taxed only at the federal level. Tennessee collects nothing.
What is the best annuity rate in Tennessee today?
The best MYGA rates available to Tennessee 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 Tennessee Guaranty Association cover?
The Tennessee 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, spread across multiple A-rated carriers.
Does Tennessee have an inheritance or estate tax?
No. Tennessee has neither a state estate tax nor an inheritance tax. Annuity death benefits pass to beneficiaries without any Tennessee-level taxation.
What is the free-look period for annuities in Tennessee?
Tennessee requires a 20-day free-look period for buyers age 65 and older, and at least 10 days for others. You can return the contract for a full refund of premium within that window.
Who regulates annuities in Tennessee?
The Tennessee Department of Commerce and Insurance (TDCI) licenses and regulates all carriers and agents in Tennessee. Verify licenses and file complaints at tn.gov/commerce/insurance or call 1-800-342-4029.
What happens to my annuity if my insurance company fails in Tennessee?
The Tennessee Life and Health Insurance Guaranty Association covers up to $250,000 of your annuity’s present value if your carrier becomes insolvent. Protection is automatic — no enrollment required.