What are the best annuity rates in Wyoming today?
The best annuity rates in Wyoming 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. Wyoming MYGA rates run from 5.15% for 2 years to 7.10%, guaranteed for the full term.
Dave, 67, relocated from Colorado to Cheyenne two years ago partly for the taxes, he moved $250,000 into a multi-year guaranteed annuity and now pays zero state income tax on the interest it earns every year. Wyoming combines no income tax with a $250,000 annuity guaranty limit and a 1% premium tax on annuities (qualified plans are exempt), making it one of the most favorable states in the country for annuity buyers.
Rates updated: October 18, 2026, 1:02 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.
- Zero state income tax: Wyoming is one of the few states with no individual income tax. Every annuity distribution, interest credit, and withdrawal is 100% exempt from state taxation, keeping more income in your pocket at retirement.
- Standard guaranty protection: Wyoming’s guaranty association covers annuity contracts up to $250,000 in present value per insurer, the same limit most states use.
- 1% premium tax, qualified plans exempt: Wyoming charges a 1% premium tax on non-qualified annuities, and qualified plans are exempt.
- Modest 4% state sales tax: Wyoming’s state sales tax is 4%, with local rates added by county, per the Wyoming Excise Tax Division’s sales tax rate charts. Combined with no income tax, that keeps state taxes on retirees low.
- Strong draw for relocating retirees: Wyoming consistently ranks among the top states for retiree tax friendliness, attracting residents from California, Colorado, and other high-tax states looking to stretch their retirement savings further.
Wyoming Department of Insurance
The Wyoming Department of Insurance licenses and regulates all insurance carriers and agents operating in the state, including those selling fixed annuities and MYGAs. The department’s consumer services division handles licensing verification and policyholder complaints.
| Contact | Details |
|---|---|
| Agency | Wyoming Department of Insurance |
| Consumer helpline | 307-777-7401 |
| Website | doi.wyo.gov |
| License verification | doi.wyo.gov/producers/look-up-a-producer |
How Wyoming Taxes Annuity Income
Wyoming imposes no state income tax. All annuity income, regardless of source, amount, or type, is entirely free from Wyoming state taxation. Your federal tax obligation is unchanged, but the state layer is simply not there.
| Annuity Type | Wyoming Tax Treatment | State Rate |
|---|---|---|
| MYGA / Fixed Annuity distributions | 100% exempt, Wyoming has no state income tax | 0% |
| Interest earnings (non-qualified) | 100% exempt at the state level; compounding is entirely uninterrupted | 0% |
| IRA/401(k) annuity distributions | 100% exempt, no state tax on any retirement income in Wyoming | 0% |
| Social Security | Fully exempt, Wyoming imposes no income tax on any income | 0% |
Tips for Buying an Annuity in Wyoming
- Direct your tax planning entirely to the federal level: With Wyoming’s zero state income tax, your only tax lever is your federal bracket. Spreading annuity withdrawals across multiple years to stay within lower federal brackets, or delaying large distributions until you’re in a lower income year, is the primary strategy for Wyoming residents. Check current fixed annuity rates to model how much your balance could grow over a 5- or 7-year term before your first withdrawal.
- Maximize your guaranty association coverage: Wyoming’s guaranty association covers up to $250,000 in annuity value per insurer, the same limit most states use. If you’re investing more than $250,000, consider splitting between two top-rated carriers to keep each contract within the limit. Carriers rated A or better by AM Best add a further layer of security on top of guaranty association coverage.
- Compare Wyoming rates to neighboring states: When you request a quote, ask carriers specifically for their Wyoming rates and compare them to what’s offered nationally.
- Verify your agent is licensed in Wyoming: If you moved to Wyoming from another state, your previous insurance agent may not hold a Wyoming license. Confirm their license status through the Wyoming Department of Insurance before signing any new annuity contract. The online producer lookup at doi.wyo.gov takes under two minutes. Learn how to buy an annuity for the full checklist.
- Consider a MYGA if you’re bridging to Social Security: Wyoming retirees delaying Social Security to 70 often need a reliable income bridge for ages 62–70. A multi-year guaranteed annuity with a 5- or 7-year term locks in today’s rates for exactly that window, and in Wyoming, every dollar of interest earned inside the contract accumulates free from state tax.
Frequently Asked Questions
Does Wyoming have a state income tax on annuities?
No. Wyoming has no individual state income tax, which means annuity distributions of all types, fixed annuity withdrawals, MYGA interest, IRA annuity payments, are entirely exempt from state taxation. Federal income tax still applies at ordinary income rates for the taxable portion of any distribution.
What is the guaranty association coverage limit in Wyoming?
Wyoming’s guaranty association covers annuity contracts up to $250,000 in present value per insurer, the same limit most states use. This protection applies if a licensed Wyoming carrier becomes insolvent. For investments above $250,000, splitting across two carriers rated A or better by AM Best is a sound approach.
Does Wyoming charge a premium tax on annuities?
Yes. Wyoming charges a 1% premium tax on non-qualified annuities, and qualified plans are exempt. Carriers price their products after accounting for premium taxes, so this cost is built into the rates they offer in the state.
Is Wyoming a good state to retire to for annuity income?
Yes, it consistently ranks among the top states for retiree tax friendliness. No income tax, a modest 4% state sales tax, and a $250,000 annuity guaranty limit make Wyoming a favorable state for annuity buyers. for retirees living on fixed income from annuities and Social Security. The primary tradeoffs are a smaller population base (meaning fewer local licensed agents) and potential weather-related cost of living considerations in some areas.
Compare Annuity Rates in Other West States
Shopping for the best rate? Guaranty association limits, premium taxes, and available carriers vary by state. Compare rates in nearby states to find the best fit for your retirement plan.
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- View All 50 State Rate Pages
You can also compare our current best fixed annuity rates or explore top 5-year MYGA rates nationwide.
