Best MYGA in Texas (2026) — Top A-Rated Carriers + Texas Guaranty Coverage
TL;DR: Texas is one of the most MYGA-favorable states in the country. Top 5-year MYGA rates in June 2026 hit 5.40-5.95% from A-rated carriers — and Texas residents pay zero state income tax on the gains. That's a structural 50-130 bps after-tax edge over residents in California, New York, or New Jersey for the same product. Texas guaranty fund coverage: $250,000 per contract per carrier. American National (Galveston, TX) is a popular Texas-domiciled carrier choice; Athene, Aspida, and Oceanview Life round out the top shelf.
Why MYGAs are especially attractive in Texas
Texas's zero state income tax changes the entire calculus on fixed-income vehicles. For the same gross rate, Texas residents net materially more than residents of any income-tax state. This isn't trivial — over a 5-year MYGA at 5.60%, a Texas resident keeps the full $32,860 in gain on a $100K deposit (federal only), versus $29,810 for a California resident in the 9.3% bracket. That's a $3,050 Texas-residency premium on a single $100K MYGA.
Texas's MYGA appeal is one of the reasons retirees increasingly relocate from high-tax states to Texas — and the structural tax advantage compounds over a 20+ year retirement.
Top MYGA carriers writing in Texas (June 2026)
| Carrier | Product | Term | Rate | AM Best | Domicile |
|---|---|---|---|---|---|
| Athene | MaxRate | 5 yr | 5.60% | A+ | IA |
| American National | Palladium | 5 yr | 5.55% | A | TX |
| Oceanview Life | Harbourview | 5 yr | 5.85% | A- | DE |
| Sentinel Security Life | Personal Choice | 5 yr | 5.95% | A- | UT |
| Aspida Life | Synergy Choice | 5 yr | 5.70% | A- | NC |
| Athene | MaxRate | 3 yr | 5.30% | A+ | IA |
| American National | Palladium | 7 yr | 5.80% | A | TX |
| Sentinel Security Life | Personal Choice | 10 yr | 6.05% | A- | UT |
Texas Life and Health Insurance Guaranty Association
The Texas Life and Health Insurance Guaranty Association (txlifega.org) protects Texas residents when a member insurer becomes insolvent. Coverage limits:
- $250,000 in present value of annuity benefits per contract owner per insurance company.
- $300,000 in life insurance death benefit per insured life per carrier.
- $100,000 in life insurance cash surrender value per insured life per carrier.
- Aggregate cap of $300,000 per individual per carrier across all life/annuity coverage.
Funded by post-insolvency assessments on Texas-licensed insurers, not by Texas tax dollars.
Texas tax treatment
Zero state income tax. MYGA gains are taxed only at:
- Federal ordinary income — 10-37% marginal, depending on bracket, when withdrawn.
- Federal 10% early-withdrawal penalty — if under 59½, on the gain portion (non-qualified annuities).
- NIIT (3.8%) — if AGI > $200K single / $250K joint.
No state tax. No state premium tax. No state-level early-withdrawal surcharge.
Worked example: Texas MYGA vs Texas CD
Texas resident, 24% federal bracket, no NIIT. $100,000 deposit, 5-year horizon.
| Vehicle | Gross rate | Year 5 ending value (after tax) | Effective after-tax CAGR |
|---|---|---|---|
| 5-yr CD (Marcus) | 4.50% | $118,250 | 3.42% |
| 5-yr Treasury | 4.30% | $117,452 | 3.27% |
| 5-yr MYGA (Athene) | 5.60% | $124,973 | 4.56% |
| 5-yr MYGA (Sentinel) | 5.95% | $127,357 | 4.94% |
Texas MYGA edge over Texas CD: +$6,723 to +$9,107 on $100K over 5 years.
Texas-specific MYGA strategy
High earner / business owner: Texas business owners selling a practice or business often have $500K-$2M of post-sale cash. MYGAs split across 2-5 A-rated carriers (to stay within $250K guaranty per contract) deliver 5.60-5.95% with full federal-only taxation — significantly better than equivalent in-state CD ladders.
Pre-retiree (age 55-65): MYGAs bridge the gap between active income and Social Security / pension start. Texas residents with no state tax keep more of the income stream, and can use MYGA ladders to create a known income runway.
Retiree (age 65+): Texas MYGAs serve as the "bond replacement" portion of a retirement portfolio. Better yield than Treasuries (5.60% vs 4.30%), comparable liquidity (10% annual free withdrawal), and full Texas-resident after-tax retention.
Relocation from high-tax state: Anyone moving to Texas from CA, NY, NJ, IL should consider MYGA-funding of taxable bond holdings after the move — to capture the no-state-tax advantage on the deferred gains.
Related Texas guides
- Texas guaranty fund details
- Texas MYGA strategy (no-state-tax detailed guide)
- Best Texas CD rates (2026)
- Texas CD vs MYGA comparison
Independent Texas MYGA quote — no obligation
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Frequently asked questions
What is the best MYGA rate in Texas right now?
As of June 2026, top 5-year MYGAs available in Texas pay 5.40-5.95% from A-rated carriers including Athene, American National (a Texas-domiciled insurer), Oceanview Life, Aspida, and Sentinel Security Life. Rates update weekly.
Does Texas have state income tax on MYGAs?
No. Texas has zero state income tax — so MYGA gains are taxed only at the federal level. This makes Texas one of the most MYGA-favorable states in the country. A 5.60% MYGA delivers the full 5.60% to a Texas resident, taxed only at federal rates when withdrawn.
How much does the Texas Life and Health Insurance Guaranty Association cover?
Texas guaranty fund covers up to $250,000 in present value of annuity benefits per contract owner per insurance company. This is the standard NAIC model — same as most other states.
Is American National Insurance Texas-based?
Yes. American National (Galveston, TX) is one of the largest Texas-domiciled life insurance and annuity carriers. Texas residents often have a soft preference for ANICO based on local familiarity, though carrier domicile does not affect coverage limits or contract terms.
Are MYGA rates higher in Texas than other states?
MYGA rates themselves are national — set by the carrier, not by state. But Texas residents get to keep more of the rate because there's no state income tax. A 5.60% MYGA in Texas is equivalent to a 6.18% MYGA in California's 9.3% bracket after state tax.
Can I buy a MYGA in Texas with retirement money?
Yes. MYGAs are commonly funded with IRA, 401(k), or 403(b) rollover dollars. The tax-deferral feature is redundant inside a retirement account, but the guaranteed rate and principal protection still apply. Texas residents pre-RMD often use MYGAs as the bond-alternative portion of their retirement portfolio.
What happens if my Texas MYGA carrier goes insolvent?
The Texas Life and Health Insurance Guaranty Association steps in up to $250,000 per contract. The Texas Department of Insurance regulates the process. For deposits over $250K, split across multiple A-rated carriers.
Are Texas annuities subject to state premium tax?
No. Texas does not impose a state premium tax on annuity premiums purchased by individuals (only certain group annuities are subject to a small premium tax). This is reflected in carrier pricing — no premium-tax drag on Texas individual MYGAs.
Disclosure
This guide reflects publicly available rate, tax, and state-guaranty-fund information as of the date stated above. MYGA rates, CD rates, state tax brackets, and guaranty-fund limits change frequently — always confirm current values against the most recent carrier disclosure, bank rate sheet, and your state guaranty association's official website before purchasing. This article is general information for educational purposes; it is not a personalized recommendation, solicitation, or offer of any specific product, and is not tax advice. Hans Goldstein is an independent licensed insurance producer (NPN 20602398) appointed with multiple A-rated carriers; appointment status with any specific carrier discussed may vary. No compensation has been received from any carrier or bank in connection with publication of this review. Always read the actual contract and consult a licensed advisor and tax professional before purchasing any annuity or CD. AM Best ratings, state tax law, and IRC tax treatment are subject to change.