Best Annuity Rates in Wisconsin: 2026 Rate Table
The rates below are from A-rated carriers currently approved to sell annuities in Wisconsin. These are guaranteed credited rates, locked in for the full contract term with no annual resets or index-linked adjustments.
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.
A multi-year guaranteed annuity is particularly well-suited to Patricia’s situation because it solves both problems simultaneously: no market risk to principal, and no taxable income generated until she chooses to withdraw. The current rate table shows available offers from carriers competitive in Wisconsin right now.
How Wisconsin Regulations Affect Your Annuity Rate
Wisconsin has a reputation as a higher-tax state for retirement income, and the 7.65% top marginal rate on ordinary income is real. But the full picture is more nuanced. Social Security income is entirely exempt from Wisconsin state tax, and qualified retirement plan distributions, including annuity income from 401(k) or IRA-funded contracts, may qualify for the pension income exclusion depending on your age and income. For someone with three years until retirement, a MYGA bought today is accumulating at a guaranteed rate without any Wisconsin tax drag. The tax bill only arrives when you start pulling money out, and by then, your effective rate may be lower than the marginal rate suggests.
Patricia, 62, is a Green Bay manufacturing plant manager with $280,000 in her 401(k) and three years until she retires. Her concern is two-fold: she doesn’t want market volatility to erode her savings in the final stretch, and she doesn’t want to take a large withdrawal during her peak income years when her Wisconsin tax rate is highest. A 3-year MYGA preserves her capital, guarantees a 5.30% rate, and lets the balance grow tax-deferred until she retires and drops into a lower tax bracket.
Wisconsin charges a premium tax of 2.0% on annuity premiums, at the national average. This is baked into carrier rate offers and creates no special advantage or disadvantage relative to most other states. The competitive pool of A-rated carriers active in Wisconsin is healthy, and the state’s large insurance industry presence (Milwaukee has historically been a significant insurance hub) keeps market activity robust.
The Wisconsin Office of the Commissioner of Insurance (OCI) regulates all annuity sales in the state. OCI licenses agents, reviews product filings, and enforces Wisconsin’s suitability requirements. Wisconsin follows the NAIC model regulation, agents must document that any recommended product suits your financial situation before completing a sale. The OCI also publishes consumer guides and has a complaint process if you have an issue with an agent or carrier.
Wisconsin has an important provision for replacement policies: the free look period is 30 days for replacement annuities, policies that replace an existing annuity contract, versus the standard 10 days for new purchases. This is a stronger consumer protection than most states provide. If you’re replacing an existing annuity with a new one in Wisconsin, you have a full month to reconsider after receiving the new contract.
For all other new annuity purchases, Wisconsin’s standard 10-day free look period applies. Review the contract in full during that window: verify the rate, surrender charge schedule, free withdrawal provision, and beneficiary designations match exactly what was quoted.
Wisconsin Insurance Security Fund
The Wisconsin Insurance Security Fund (WISF) protects Wisconsin annuity owners if a licensed insurer becomes insolvent. Wisconsin’s coverage limit is $300,000 per annuity owner, per insolvent insurer, above the $250,000 standard applied in many other states.
Patricia’s $280,000 rollover falls comfortably within Wisconsin’s $300,000 limit with a single carrier. She doesn’t need to split at that amount, though she’s close enough to the limit that adding more to the same carrier in the future (for example, from a subsequent 401(k) contribution) would push her over. If her balance grows to exceed $300,000 with one carrier, the split-carrier strategy becomes worth discussing.
Coverage under the WISF applies automatically to any annuity purchased from a carrier licensed to do business in Wisconsin. There is no enrollment process and no separate premium. If the carrier fails, the WISF steps in to protect the covered amount through a policy transfer to a solvent carrier or direct payment of benefits, up to the limit.
As with any guaranty program, the best protection is not needing it. My Annuity Store only shows rates from carriers with AM Best ratings of A- or better, which dramatically lowers the probability of insolvency. For a full explanation of the national system, see our overview of state guaranty associations.
Annuity Tax Treatment in Wisconsin
Wisconsin taxes ordinary income at graduated rates from 3.54% to 7.65%. Annuity withdrawals are treated as ordinary income and taxed accordingly. Wisconsin does not have a broad retirement income exemption, but two specific provisions matter for annuity buyers:
First, Social Security income is not taxed in Wisconsin, regardless of total income. This is a meaningful benefit for retirees who receive Social Security alongside annuity distributions.
Second, Wisconsin provides a pension income exclusion for qualifying retirement distributions from employer pension plans. Whether a specific annuity contract qualifies depends on how it was funded, an annuity purchased with 401(k) rollover assets may or may not qualify for this exclusion depending on the nature of the original employer plan. A Wisconsin tax advisor can confirm eligibility for your specific situation.
For non-qualified annuities (funded with after-tax dollars), only the earnings portion of each distribution is subject to Wisconsin income tax, the return of original principal is excluded. This is the federal exclusion ratio treatment, which Wisconsin follows.
The tax deferral inside a Wisconsin annuity has compounding value precisely because of the state’s higher tax rates. Patricia’s $280,000 growing at 5.30% for three years generates approximately $44,700 in interest. None of that interest triggers a Wisconsin tax bill during the accumulation phase. If she were in a taxable account earning the same rate, the annual interest would be taxed at Wisconsin’s ordinary income rates each year, reducing her net compounding rate by 1.5%–2.0% annually. Over three years, the tax-deferral advantage inside the annuity amounts to roughly $3,500 in additional after-tax accumulation compared to a taxable account earning the same gross rate.
Patricia’s plan, retire at 65 and shift to part-time consulting, means her income in retirement will be lower than during her working years. Deferring withdrawals until her income drops from the top bracket (7.65%) to a lower bracket (potentially 4.40% or lower) saves real money. The 3-year MYGA matures just as she retires, and she can roll it into a new contract or begin distributions at the lower tax rate.
How to Buy an Annuity in Wisconsin: Step by Step
- Match the contract term to your retirement timeline. Patricia is 62 with three years until retirement. A 3-year MYGA matures at her planned retirement date, the capital is available to redeploy or annuitize for income at exactly the moment she needs flexibility. Buying a 7-year MYGA would lock her into surrender charges through most of her early retirement. Term matching is one of the most overlooked decisions in annuity selection.
- Run the tax comparison before committing. Wisconsin’s 7.65% top rate means the tax savings from deferral are larger here than in most other states. Work through the numbers with a tax advisor: what’s your Wisconsin effective rate now versus your projected effective rate in retirement? For most working-year buyers, the answer clearly favors deferral, but quantifying it makes the decision concrete.
- Shop multiple A-rated carriers on the same term. A 0.30% rate difference on $280,000 is $840 per year. Over a 3-year term with compounding, that gap becomes roughly $2,600. Use the current rate table to compare carriers side by side. For a 3-year term, the rate competition among carriers is particularly active right now.
- Request a direct rollover from the 401(k) plan. Patricia should request a direct trustee-to-trustee transfer from her 401(k) to the annuity carrier. This avoids the 20% mandatory withholding that applies if the check is issued to her personally, and it eliminates the 60-day rollover window stress. The annuity carrier and the 401(k) plan administrator coordinate the transfer directly. Patricia signs the application and the rollover authorization, the money moves without her ever touching it.
- Review the contract and confirm the replacement free look if applicable. If Patricia already has an existing annuity she’s replacing, Wisconsin’s 30-day free look gives her extra time to review and compare both contracts before committing. For a new annuity purchase, the 10-day free look still applies. Either way, verify all terms before the window closes. Start the process with a free quote request, and see our guide on how to buy an annuity for a complete step-by-step overview.
Frequently Asked Questions About Annuities in Wisconsin
Does Wisconsin tax annuity withdrawals?
Yes. Wisconsin taxes annuity distributions as ordinary income at graduated rates from 3.54% to 7.65%. Social Security income is exempt, and some employer pension distributions may qualify for an exclusion. For most retirees drawing annuity income, the effective Wisconsin tax rate depends on total income, including Social Security, other retirement plan distributions, and investment income. A Wisconsin tax advisor can calculate your projected effective rate in retirement.
Why is tax deferral especially valuable for Wisconsin annuity buyers?
Wisconsin’s top marginal income tax rate of 7.65% is one of the highest rates in the Midwest. Every year of tax deferral inside an annuity means the annual growth is not subject to Wisconsin ordinary income tax that year. For a taxpayer at the top Wisconsin bracket, deferral effectively increases the net compounding rate by nearly 1.5%–2.0% annually compared to a taxable account earning the same gross rate. Over a 3- to 7-year accumulation period, that adds up to thousands of dollars in additional after-tax growth.
What is Wisconsin’s guaranty association coverage limit?
The Wisconsin Insurance Security Fund covers annuity contracts up to $300,000 per annuity owner, per insolvent insurer, above the $250,000 standard used by many other states. For premiums between $250,001 and $300,000, Wisconsin residents have more room than most states before needing to split across two carriers. For amounts over $300,000, use the split-carrier strategy.
What is the free look period for annuity replacement contracts in Wisconsin?
Wisconsin provides a 30-day free look period when a new annuity contract replaces an existing one. For first-time annuity purchases, the standard 10-day free look applies. The extended replacement period gives Wisconsin buyers more time to compare the new contract against the one being replaced and confirm the switch makes financial sense. Use the full window, read the complete contract, not just the rate page.
