Today’s MYGA Rates Available in Arizona
Multi-year guaranteed annuity (MYGA) rates change frequently and availability varies by state. Rather than show a snapshot that goes stale, we maintain a live comparison of 2,400+ products from 60+ carriers, updated from industry rate feeds.
Compare live MYGA rates for Arizona
Filter by term, carrier rating, and minimum premium — then connect with a licensed Arizona agent about any rate you see.
See Today’s Rates →How Arizona taxes annuity income
Arizona applies a flat 2.5% state income tax to annuity distributions that are included in federal adjusted gross income. Qualified annuity distributions (IRA, 401(k) rollovers) are fully taxable as ordinary income; non-qualified annuities are taxed only on the earnings portion under exclusion-ratio rules.
Arizona does not tax Social Security benefits. For retirees combining Social Security with annuity income, only the annuity portion is subject to the 2.5% state tax. Federal income tax and the 10% federal early-withdrawal penalty (before age 59½) apply as usual.
Source: Arizona Department of Revenue
Arizona Annuity Regulations
Free Look Period: 10 days (30 days if age 65+)
Arizona provides annuity purchasers a free look period during which the contract may be returned for a full refund of premiums paid, with no surrender charges:
- Standard: 10 days from the date the contract is delivered.
- Age 65 and older: the free look extends to 30 days.
Free look periods shown are the statutory minimum; individual carriers may offer longer. Always review your specific contract for the applicable terms.
Source: Arizona Department of Insurance and Financial Institutions (DIFI)
Best Interest Standard: Adopted — first state to enact the 2020 NAIC revisions
Arizona was the first state to adopt the NAIC's 2020 best-interest revisions to the Suitability in Annuity Transactions Model Regulation (#275), enacted in 2020 at Ariz. Rev. Stat. §20-1243 et seq. A producer recommending an annuity must act in the consumer's best interest — evaluating the consumer's financial situation, insurance needs, and objectives — and may not place the producer's own compensation interest ahead of the consumer's. The standard imposes care, disclosure, conflict-of-interest, and documentation obligations, with insurer supervision systems required.
Source: Ariz. Rev. Stat. §20-1243 et seq. (2020)
Source: Arizona DIFI
Replacement Rules
Arizona requires specific consumer protections when an existing annuity or life insurance policy is replaced:
- A written comparison and replacement notice covering the existing and proposed contracts, including surrender charges, benefits, and features.
- Notification to the existing insurer so it may provide the consumer relevant policy information.
- A best-interest basis for the replacement — it cannot be driven primarily by the producer's compensation.
These rules are designed to prevent churning and ensure consumers are fully informed before surrendering an existing contract. Buyers age 65+ also receive the extended 30-day free look on the new contract.
