Texas retirees enjoy one of the best financial environments for annuity ownership in the country. With no state income tax, no estate tax, and a massive independent insurance market serving Houston, Dallas-Fort Worth, San Antonio, and Austin, Texas-based annuity buyers keep more of their guaranteed growth than residents of most other states.
Below are today’s best MYGA rates available to Texas 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% | |
| GBU Life | Asset Guard Select 2 | 4.75% | 2 yr | $25,000 | 10% | |
| Oceanview Life and Annuity | Harbourview 2 | 4.60% | 2 yr | $70,000 | 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 (state specific) | 4.90% | 3 yr | $100,000 | Interest Only | |
| Midland National Life | MNL Guarantee Pro 3 | 4.85% | 3 yr | $100,000 | Interest Only | |
| Symetra Life Insurance Company | Symetra Select Max 3 | 4.85% | 3 yr | $250,000 | Interest Only |
4-Year MYGA Rates
| Carrier | Product | AM Best | Rate | Term | Min Premium | Free Withdrawal |
|---|---|---|---|---|---|---|
| Oxford Life Insurance Company | Multi-Select 4 | 5.10%Top Rate | 4 yr | $20,000 | 10% | |
| Oceanview Life and Annuity | Harbourview 4 | 5.00% | 4 yr | $70,000 | 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% | |
| 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% | |
| Guaranty Income Life | Guaranty Rate Lock 4 | 4.50% | 4 yr | $100,000 | 5% |
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 | 5.35% | 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 | 4.70% | 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 | 4.15% | 6 yr | $100,000 | 15% | |
| Corebridge Financial | American Pathway VisionMYG 6 | 4.15% | 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 |
|---|---|---|---|---|---|---|
| Axonic Insurance | Waypoint 10 MYGA | 5.50%Top Rate | 10 yr | $100,000 | 10% | |
| Oceanview Life and Annuity | Harbourview 10 | 5.45% | 10 yr | $70,000 | 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
- Texas has no state income tax — annuity withdrawals face only federal taxation, significantly boosting after-tax returns
- The Texas Life and Health Insurance Guaranty Association protects up to $250,000 in annuity present value per person, per insurer
- Texas law requires a minimum 10-day free-look period (20 days for buyers age 65 and older)
- Texas has no estate tax and no inheritance tax — annuity death benefits pass to heirs without additional state-level cost
- Most major national MYGA carriers are licensed in Texas — you have full access to the competitive rate market
Are Fixed Annuities a Good Investment in Texas?
For Texas residents aged 55–75 with money to protect, fixed annuities offer a compelling proposition: guaranteed growth, tax deferral, and state tax efficiency that’s among the best in the nation. Zero state income tax means every dollar of annuity income you withdraw stays out of the Texas treasury.
Here’s a real scenario: James, age 64, lives in Houston with $175,000 in a maturing CD at 4.10%. He rolls it into a 5-year MYGA at 5.00%. At maturity he has approximately $223,299 — a guaranteed $48,299 gain. Taxed federally at his 22% bracket, he owes roughly $10,626 federal. Texas owes nothing. The same investor in a 6% state income tax state would owe an additional $2,898 — money a Texas resident simply keeps.
Texas also has no estate tax and no inheritance tax, so annuity death benefits pass to beneficiaries without state-level deduction.
Texas Guaranty Association: How Your Annuity Is Protected
The Texas Life and Health Insurance Guaranty Association (TXLHIGA) protects Texas policyholders if a licensed carrier becomes insolvent. Coverage activates automatically — no enrollment required.
| Coverage Type | Texas 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, spreading across multiple A-rated carriers keeps each policy fully within coverage limits. Limits apply per insurer — so two carriers give you two separate $250,000 limits.
Texas Life and Health Insurance Guaranty Association
Website: txlifega.org
How Texas Taxes Annuity Income
Texas has no state income tax. Annuity withdrawals — from MYGAs, fixed annuities, SPIAs, or any other annuity type — are not taxed at the state level. Only federal income tax applies.
| Annuity Type | Texas Tax Treatment | State Rate |
|---|---|---|
| Non-qualified (after-tax funds) | Only gains taxed federally; Texas collects nothing | 0% |
| Qualified (IRA / 401(k) rollover) | 100% of each distribution is federally taxable; Texas collects nothing | 0% |
| Roth IRA annuity | Qualified distributions are fully tax-free | 0% |
| 1035 Exchange | No state or federal tax triggered on the exchange itself | N/A |
Texas has no inheritance tax and no estate tax at the state level. Federal estate taxes may apply for very large estates, but the standard federal exemption is $13.61 million per individual as of 2026.
Texas Department of Insurance (TDI)
The Texas Department of Insurance (TDI) licenses and regulates all insurance carriers and agents operating in Texas. Before purchasing an annuity, verify both the carrier’s certificate of authority and your agent’s license through TDI’s online lookup. Complaints are also handled through TDI.
| Contact | Details |
|---|---|
| Agency | Texas Department of Insurance (TDI) |
| Consumer helpline | 1-800-252-3439 |
| Website | tdi.texas.gov |
| License verification | tdi.texas.gov/agent/agentlookup.html |
Tips for Buying an Annuity in Texas
- Seniors 65+ get an extended free-look: Texas gives buyers age 65 and older a 20-day free-look period to review the contract and cancel for a full refund. Others get 10 days. Use it — read the entire contract.
- Work with an independent broker: Independent brokers shop 20+ carriers and find you the best available rate. Captive agents are limited to one company.
- Verify carrier licensure in Texas: Confirm the carrier is authorized in Texas through TDI before submitting an application.
- Don’t exceed $250,000 per carrier: For portfolios above $250,000, use two or more A-rated carriers to maximize guaranty fund protection on the full balance.
- Compare MYGA vs. CD rates: Bank CD rates in Texas have been competitive, but A-rated MYGA carriers consistently outperform equivalent-term CDs — plus you get tax deferral on growth that CDs don’t offer.
Frequently Asked Questions
Does Texas tax annuity income?
No. Texas has no state income tax. Withdrawals from any annuity type — MYGA, fixed, income, or variable — are taxed only at the federal level. This is one of the most significant financial benefits of retiring in Texas.
What is the best annuity rate in Texas today?
The best MYGA rates available to Texas 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 Texas Guaranty Association cover?
The Texas 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 — each with its own separate $250,000 limit.
What is the free-look period for annuities in Texas?
Texas requires a 20-day free-look period for buyers age 65 and older, and at least 10 days for others. During this window you can return the contract for a full refund of your premium.
Who regulates annuities in Texas?
The Texas Department of Insurance (TDI) licenses and regulates all insurance carriers and agents in Texas. Verify licenses and file complaints at tdi.texas.gov or by calling 1-800-252-3439.
Is there an inheritance tax on annuities in Texas?
No. Texas has no state inheritance tax and no estate tax. Annuity death benefits paid to beneficiaries are not subject to Texas state-level taxation. Only federal estate tax rules apply, which affect very few estates.
What happens to my annuity if my insurance company fails in Texas?
If your carrier is licensed in Texas and becomes insolvent, the Texas Life and Health Insurance Guaranty Association covers up to $250,000 of your annuity’s present value. Protection is automatic — no enrollment required. Stick with AM Best A-rated carriers to minimize the risk of ever needing this protection.