What are the best annuity rates in New Jersey today?
The best annuity rates in New Jersey today top out at 7.10% for a 7-year MYGA from Knighthead Life (AM Best A-, simple interest), as of October 18, 2026. Among carriers rated A, A+ or A++ by AM Best, the top rate is 6.20% for 7 years from Sagicor Life. New Jersey MYGA rates run from 5.15% for 2 years to 7.10%, guaranteed for the full term.
Best Annuity Rates in New Jersey
Annuity rates in New Jersey come from a competitive market of top annuity companies, and the table below shows today’s best offers.
Rates updated: October 18, 2026, 1:53 pm ET · Source: AnnuityRateWatch. Rates shown are for informational purposes only and subject to change without notice. Products marked SI use simple interest, 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 professional before purchasing.
Key Takeaways
- $500,000 guaranty limit, $100,000 cash value cap: New Jersey’s guaranty association covers up to $500,000 in annuity benefits per insurer. Cash surrender and withdrawal values are capped at $100,000, which is the limit that matters most for a MYGA or other deferred annuity.
- Up to $100,000 income exclusion for couples: Married couples age 62 or older with total income of $100,000 or less can exclude up to $100,000 of pension, annuity, and IRA income from New Jersey state taxes each year.
- Social Security is fully exempt: New Jersey does not tax Social Security benefits at all, regardless of income level, one of the more retiree-friendly provisions in the state tax code.
- The exclusion phases out between $100,000 and $150,000: Above $100,000 of total income, you can exclude only a percentage of that income. Above $150,000, no pension exclusion is available, and the full graduated rate applies.
- The top rate is 10.75%, but most retirees pay far less: The 10.75% rate applies only to income over $1 million. Most retirees fall into the 3.5% to 5.525% brackets, and the income exclusion can reduce taxable income significantly below even those rates.
New Jersey Department of Banking and Insurance
New Jersey’s Department of Banking and Insurance (DOBI) regulates all annuity products and licensed agents in the state. New Jersey has robust consumer protection rules, including suitability requirements specific to senior annuity buyers.
| Contact | Details |
|---|---|
| Agency | New Jersey Department of Banking and Insurance (DOBI) |
| Consumer helpline | 1-800-446-7467 |
| Website | nj.gov/dobi |
| License verification | Use the license lookup at nj.gov/dobi |
How New Jersey Taxes Annuity Income
New Jersey’s income tax structure is graduated with rates ranging from 1.4% to 10.75%, but retirees age 62 or older with income under $150,000 can benefit from a substantial exclusion on pension, annuity, and IRA income. The exclusion phases out for incomes between $100,000 and $150,000 and is not available above $150,000, per the New Jersey Division of Taxation’s retirement income exclusion rules.
| Annuity Type | New Jersey Tax Treatment | State Rate |
|---|---|---|
| MYGA / Fixed annuity distributions | Taxable; eligible for retirement income exclusion if age 62+ | 3.5%–5.525% for most retirees |
| Non-qualified annuity interest (gain portion) | Taxable; investment basis recovered tax-free | 3.5%–5.525% for most retirees |
| IRA / 401(k) annuity distributions | Taxable; eligible for retirement income exclusion if age 62+ | 3.5%–5.525% for most retirees |
| Social Security income | Fully exempt, not taxed in New Jersey | 0% |
New Jersey Annuity Example:
Susan and Richard, ages 64 and 67, live near Princeton and recently started mapping out their retirement income. New Jersey’s annuity picture is more favorable than most people expect.
A MYGA funded through a non-qualified account can qualify for a significant income exclusion under New Jersey tax law. Keep in mind that the state’s guaranty association caps cash values at $100,000 per insurer, so a large MYGA is better protected when split across carriers.
Tips for Buying an Annuity in New Jersey
- Calculate your income exclusion eligibility before structuring withdrawals: If your household income stays at $100,000 or less, you and your spouse can exclude up to $100,000 of combined pension, annuity, and IRA income from New Jersey taxes. Between $100,001 and $150,000, you can exclude a percentage of that income instead. Planning your MYGA withdrawal schedule around this threshold can make a meaningful difference, review today’s fixed annuity rates alongside your projected income before choosing a term.
- Plan around the $100,000 cash value cap: New Jersey’s guaranty association covers up to $500,000 in annuity benefits per insurer, but only $100,000 in cash surrender and withdrawal values. For a deferred annuity like a MYGA, splitting a large deposit across several top annuity companies keeps more of it inside the cap. Learn how state guaranty associations work before making your final allocation decision.
- Understand how the exclusion phases out: The retirement income exclusion begins reducing once your income exceeds $100,000, and it ends completely above $150,000. If your income hovers near the $150,000 threshold, managing your MYGA withdrawal timing carefully, perhaps delaying a distribution by one calendar year, can preserve a larger exclusion amount.
- Verify DOBI licensing before signing anything: New Jersey has active enforcement of annuity suitability rules. Our complete annuity buying guide explains what questions to ask any agent, what to look for in a contract, and what red flags to avoid, particularly important in a state with as many licensed agents as New Jersey.
- Compare multiple carriers, rates vary widely: Even within the same term length, MYGA rates from different carriers can vary by 50 or more basis points. Request a free, no-obligation annuity quote from New Jersey-licensed carriers to see your best available options side by side.
Compare today’s annuity rates in New Jersey in the table above, then request a quote to lock in a rate before the October 28 Fed decision.
Lock in today's MYGA rate before the October 28 Fed decision
Your rate is set by your application date, not the day rates change. Request a quote and we will confirm current rates for your state and premium, in writing, so you can decide before the market moves.
Frequently Asked Questions
What is the retirement income exclusion in New Jersey?
New Jersey allows taxpayers age 62 or older to exclude pension, annuity, and IRA income from state taxes, up to $75,000 for single filers and $100,000 for married couples filing jointly when total income is $100,000 or less. Between $100,001 and $150,000, you can exclude a percentage of that income. Above $150,000, no pension exclusion is available.
Does New Jersey tax Social Security benefits?
No. New Jersey does not tax Social Security benefits at any income level. This is one of the most retiree-friendly provisions in New Jersey’s tax code and applies regardless of whether you receive Social Security in addition to annuity or pension income.
What is the annuity guaranty limit in New Jersey?
New Jersey’s Life and Health Insurance Guaranty Association protects up to $500,000 in present value of annuity benefits per insolvent insurer. Cash surrender and withdrawal values are capped at $100,000, the limit that applies to most deferred annuities like MYGAs. Buyers placing more than $100,000 can split the deposit across top annuity companies to keep each contract inside the cap.
Are non-qualified annuities taxed differently in New Jersey?
Yes, with one important difference from federal treatment. New Jersey taxes non-qualified annuities on the gain portion when withdrawn, but it does not allow the same tax-deferred treatment during the accumulation phase as the IRS does. New Jersey taxes contributions that were already subject to state income tax, so your basis in a non-qualified annuity for NJ purposes may differ from your federal basis. Consult a tax professional familiar with New Jersey rules before structuring a large non-qualified contract.
