Annuity Rates in Southeast States: Compare All 8 States

If you live in the Southeast and you’re planning retirement income, one question comes up almost immediately: are the annuity rates available to me competitive, and how do they compare to what my neighbors in the next state over can get? It’s a fair question. Annuity rates themselves are set by insurance carriers and shift with interest-rate cycles — they don’t change at the state line. But the tax treatment of annuity income, cost-of-living differences, and state-specific insurance regulations absolutely do vary from Tennessee to the Carolinas to Virginia. That combination makes a regional comparison genuinely useful, not just a curiosity.

This guide pulls together state-level rate pages for eight southeastern states so you can read the one that applies to you — and quickly check a neighboring state if you’re considering a move or simply want context. Before diving into the state pages, it helps to understand the basics: if you’re still deciding whether an annuity is the right vehicle at all, our comparison of an annuity vs. a CD and which one fits your retirement plan is a good starting point. And if you want a deeper look at how the fixed-rate products most popular in this region actually work, the fixed deferred annuity guide covering how they work, rates, and pros and cons walks through the mechanics in plain English.

Why Southeast Retirees Ask About Annuity Rates Together

The Southeast has become one of the most active retirement destinations in the country. Lower property taxes, mild winters, and — in several states — favorable treatment of retirement income have drawn retirees from higher-cost regions for decades. That shared profile means retirees across Tennessee, Alabama, Georgia, Mississippi, the Carolinas, Kentucky, and Virginia are often weighing the same tradeoffs: how much guaranteed income do I need, how will that income be taxed, and what rate can I actually lock in today?

Annuity carriers price their products nationally, so a five-year multi-year guaranteed annuity (MYGA) from a given insurer pays the same contractual rate whether you live in Nashville or Charlotte. What differs is how each state taxes the income when you take withdrawals, whether the state has an income tax at all, and what consumer protections apply under that state’s insurance code. Those details matter enough that a page written specifically for your state is worth reading before you sign anything.

One question that comes up across every state in this region: what happens to my annuity if I die before I’ve collected everything? The answer depends on the contract type and beneficiary designations you set up — our article on what happens to your annuity money if you die early explains the options clearly.

State-by-State Annuity Rate Pages for the Southeast

Tennessee

Tennessee has no state income tax on wages and, importantly, does not tax annuity income at the state level — a meaningful advantage for retirees drawing from a fixed or deferred annuity. The Tennessee annuity rates page covers current rate ranges available to Tennessee residents, explains how the state’s tax environment interacts with annuity withdrawals, and outlines what to look for when comparing carriers licensed in the state. It’s the natural starting point for anyone retiring in or around Tennessee.

Alabama

Alabama taxes most retirement income but exempts Social Security and offers partial exemptions for certain pension and annuity income, making the tax picture more nuanced than a simple yes/no. The Alabama annuity rates page addresses those nuances alongside current rate data, helping Alabama retirees understand how much of their annuity income they’ll actually keep after state taxes. If you’re comparing a fixed annuity to a bank CD in Alabama, the after-tax math can look quite different from what the headline rate suggests.

Georgia

Georgia has been actively reforming its income tax structure, moving toward a flat tax rate — a change that affects how annuity withdrawals are taxed for retirees in the state. The Georgia annuity rates page is written for Georgia residents who want current rate context alongside an explanation of how the state’s evolving tax law applies to annuity income. It’s particularly relevant for retirees in the Atlanta metro and coastal Georgia markets where retirement planning activity is high.

Mississippi

Mississippi is one of the more retirement-friendly tax states in the region — it exempts most retirement income, including annuity distributions, from state income tax. The Mississippi annuity rates page explains what that exemption covers, what it doesn’t, and what annuity rates Mississippi residents can realistically expect from carriers active in the state. For retirees on a fixed income, Mississippi’s tax treatment can make a meaningful difference in net monthly income.

North Carolina

North Carolina taxes retirement income at a flat rate, with limited exemptions — meaning annuity withdrawals are generally subject to state income tax for most residents. The North Carolina annuity rates page walks through how that tax treatment affects the real value of annuity income and what current rates look like for NC residents shopping fixed and MYGA products. North Carolina’s large and growing retiree population — particularly in the Research Triangle and western mountains — makes this one of the more actively searched state pages in the region.

South Carolina

South Carolina offers a retirement income deduction that can reduce the state tax bite on annuity withdrawals for residents over a certain age, making it more competitive than its flat tax rate alone would suggest. The South Carolina annuity rates page explains the deduction, who qualifies, and how it interacts with annuity income specifically. Retirees along the Grand Strand or in the Upstate region will find the state-specific context useful when comparing products.

Kentucky

Kentucky taxes most retirement income, including annuity distributions, though it has a modest pension income exclusion that may apply in some situations. The Kentucky annuity rates page covers what Kentucky residents need to know about state tax treatment, current rate ranges, and how to evaluate carriers licensed in the Commonwealth. Kentucky’s proximity to Tennessee makes cross-border comparisons common, especially for retirees near the state line.

Virginia

Virginia has a relatively standard income tax structure with an age deduction for residents 65 and older — a provision that can meaningfully reduce the tax on annuity income for qualifying retirees. The Virginia annuity rates page explains how that deduction works in practice, what annuity rates Virginia residents are seeing in the current rate environment, and what to watch for when comparing fixed annuity and MYGA products in the state. Northern Virginia retirees in particular often have larger lump sums to place, making product selection especially consequential.

How to Use These Pages Together

The most useful way to approach this regional guide is to start with your own state’s page, then check one or two neighboring states if you’re within a few years of a potential move. Tax treatment of annuity income can shift your net monthly check by a meaningful amount — and if you’re deciding between retiring in South Carolina versus North Carolina, for example, the difference in how each state taxes annuity withdrawals is a real factor worth running through with a licensed agent.

If you’re still in the comparison-shopping phase and want to understand what separates a strong rate from a mediocre one, our guide to what to look for before you buy a fixed annuity covers the evaluation criteria that matter most — carrier financial strength, surrender period length, and how to read the fine print on rate guarantees. For a side-by-side look at current top rates across product types, the page comparing today’s top MYGA rates is updated regularly and gives you a benchmark before you talk to anyone.

If you want to see how all fifty states compare — not just the Southeast — the annuity rates by state page is the broadest resource on the site, organized so you can find your state quickly and understand how regional patterns fit into the national picture.

A Note on What These Pages Can and Cannot Tell You

Every state page on this site explains the rate environment and tax context for that state. What no page can do — and what no website should do — is tell you which specific product is right for your situation. Annuity contracts are insurance products with terms that vary by carrier, contract type, and the details of your financial picture. The information here is educational. For a recommendation that accounts for your income needs, tax situation, and timeline, talk to a licensed annuity agent in your state.

The Southeast is a big, diverse region, and the right annuity strategy for a 68-year-old retiree in Knoxville looks different from the right strategy for a 62-year-old pre-retiree in Raleigh or a 74-year-old in Biloxi. Use these pages to get informed — then get personalized advice before you commit.