Washington state has no personal income tax — making it one of the best states in the country for annuity owners. Every dollar you withdraw from an annuity in Washington is yours to keep at the state level. No state taxes on earnings, no state taxes on qualified distributions, no state taxes on inherited annuity payments.
On top of that, Washington’s guaranty association provides $500,000 in annuity protection — double the standard coverage in most states.
Below are today’s best MYGA rates available to Washington residents from A-rated carriers, 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% | |
| 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 | |
| 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 | |
| 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 |
|---|---|---|---|---|---|---|
| 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% | |
| 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% | |
| Royal Neighbors of America | MYGA 5 Year | 5.20% | 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 | 5.10% | 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% | |
| 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 | |
| Aspida | Synergy Choice 7 | 5.30% | 7 yr | $100,000 | 0% |
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
- Washington has no state income tax — annuity withdrawals are not taxed at the state level
- Washington’s guaranty association covers up to $500,000 in annuity benefits — twice the standard $250,000 limit in most states
- The Washington Life and Disability Insurance Guaranty Association is one of the strongest state-level protections in the country
- Washington requires a minimum 10-day free-look period for annuity contracts (20 days for buyers 65+)
- Seattle, Spokane, Bellevue, and Tacoma all have active independent annuity broker markets
Why Washington Is One of the Best States for Annuity Buyers
Washington’s zero income tax is the headline — but the $500,000 guaranty association limit is equally important and far less discussed. Most states cap annuity protection at $250,000. Washington doubles that. This means a single investor can hold up to $500,000 with one carrier and have the full balance protected if the carrier fails. For larger portfolios, Washington’s protection extends significantly further than the national standard.
Here’s the tax advantage in numbers: Patricia, age 64, lives in Bellevue and withdraws $40,000 per year from a non-qualified MYGA — all of it gain. Her federal tax bill on that $40,000 is roughly $6,000 (at a 15% effective federal rate). In Washington, she owes zero additional state tax. In California, she’d owe an additional $3,600 (at 9% state rate). In Oregon, $3,500 more. Washington’s no-tax environment adds up to thousands of dollars per year in savings for annuity income earners.
Note: Washington does have a capital gains excise tax (7%) on certain investment gains over $262,000 annually — but standard annuity distributions are not capital gains and are not subject to this tax. Ordinary annuity income in Washington remains completely state-tax-free.
Washington Guaranty Association: $500,000 Coverage
The Washington Life and Disability Insurance Guaranty Association provides $500,000 in annuity present value protection per person, per insurer — double the standard limit in most states. This is one of the most policyholder-friendly guaranty structures in the country.
| Coverage Type | Washington Protection Limit |
|---|---|
| Annuity present value | $500,000 per person, per insurer |
| Life insurance death benefit | $500,000 per person, per insurer |
| Health insurance benefits | $500,000 per person, per insurer |
| Multiple policies, same insurer | Combined subject to per-insurer limits |
For context: a Washington resident investing $500,000 in a single A-rated carrier has the full balance covered by the guaranty association. In California, New York, or Florida — states with the standard $250,000 limit — that same investor would need to split across two carriers to get full coverage. Washington’s higher limit simplifies large-portfolio annuity strategies significantly.
Washington Life and Disability Insurance Guaranty Association
Website: wldiga.com
How Washington Taxes Annuity Income
Washington has no personal income tax. Annuity distributions — whether from qualified or non-qualified contracts — are not taxed at the state level. This applies to regular withdrawals, required minimum distributions (RMDs), income annuity payments, and death benefit distributions to beneficiaries.
| Annuity Type | Washington Tax Treatment | State Rate |
|---|---|---|
| Non-qualified annuity (after-tax funds) | No state income tax on withdrawals | 0% |
| Qualified annuity (IRA / 401(k) rollover) | No state income tax on distributions | 0% |
| Income annuity payments | No state income tax | 0% |
| Death benefit to beneficiaries | No state income tax (WA has no inheritance tax) | 0% |
| 1035 Exchange | No tax (no income tax in WA) | 0% |
Washington residents do owe federal income taxes on annuity distributions at normal federal rates. The state tax savings are purely additive — you still file a federal return, but there’s no Washington state return required for most residents (Washington has no personal income tax return filing requirement).
Washington State Office of the Insurance Commissioner
The Washington State Office of the Insurance Commissioner (OIC) regulates all insurance carriers and agents operating in Washington. Use the OIC’s online tools to verify carrier licenses, check agent credentials, or file a complaint about an annuity product or sale.
| Contact | Details |
|---|---|
| Agency | Washington State Office of the Insurance Commissioner (OIC) |
| Phone | (360) 725-7000 |
| Consumer hotline | 1-800-562-6900 |
| Website | insurance.wa.gov |
| File a complaint | insurance.wa.gov/file-complaint |
Tips for Buying an Annuity in Washington
- Maximize the $500,000 guaranty limit: Unlike most states where you need to split at $250,000, Washington lets you hold up to $500,000 with a single A-rated carrier under full guaranty protection.
- Consider the total after-tax yield: With no state income tax, a 5.00% MYGA in Washington has a higher after-tax yield than the same product in a state with a 5% income tax. Factor this into rate comparisons.
- Don’t confuse the capital gains tax with income tax: Washington’s 7% capital gains excise tax applies only to certain investment gains over $262,000 annually — standard annuity distributions are not capital gains and are not affected.
- Work with an independent broker: Seattle and Bellevue have large independent broker networks. Shop multiple carriers before committing.
- Use the full free-look period: Washington buyers 65+ get 20 days to review and cancel. Read every page of the contract before the window closes.
Frequently Asked Questions
What is the best annuity rate available in Washington state today?
The best MYGA rates available to Washington residents from A-rated carriers typically range from 4.50%–5.50% depending on the term, as of early 2026. See the live table above for current figures updated daily.
Does Washington state tax annuity income?
No. Washington has no personal income tax. Annuity withdrawals — whether from qualified or non-qualified contracts — are not taxed at the state level. You owe federal income taxes but zero Washington state income tax on annuity distributions.
How much does Washington’s Guaranty Association protect?
Washington’s guaranty association covers up to $500,000 in annuity present value per person, per insurance company — double the standard $250,000 limit in most states. This is one of the highest protections in the country.
Is there a free-look period for annuities in Washington?
Yes. Washington requires a 10-day free-look period for standard annuity buyers, and a 20-day free-look period for buyers age 65 and older. During this window, you can return the contract for a full refund of your premium.
Who regulates annuities in Washington state?
The Washington State Office of the Insurance Commissioner (OIC) regulates all insurance carriers and agents in Washington. Verify licenses and file complaints at insurance.wa.gov or call 1-800-562-6900.
Does Washington’s capital gains tax affect annuity distributions?
No. Washington’s 7% capital gains excise tax applies only to long-term capital gains on certain investment assets (stocks, bonds) above $262,000 annually. Standard annuity withdrawals and income distributions are ordinary income, not capital gains, and are not subject to this tax.