Annuity Information by State

900,000 residents age 65+

Alabama combines one of the lowest costs of living in the nation with mild winters, making retirement dollars stretch further than in most states. With roughly 900,000 residents age 65 and older, Alabama is an active market for guaranteed lifetime income.

100,000 residents age 65+

Alaska has no state income tax and even pays residents an annual Permanent Fund Dividend, making it uniquely tax-friendly for annuity income. With roughly 100,000 residents age 65 and older, Alaska is an active market for guaranteed lifetime income.

1.3 million residents age 65+

Arizona's warm climate and flat tax rate make it a top retirement destination. With 1.3 million seniors and growing, the demand for guaranteed annuity income continues to rise.

530,000 residents age 65+

Arkansas offers retirees a low cost of living and a $300,000 guaranty association limit — higher than most states. With roughly 530,000 residents age 65 and older, Arkansas is an active market for guaranteed lifetime income.

5.8 million residents age 65+

California has the largest population of seniors in the US at 5.8 million aged 65+. While the state has higher taxes, annuities remain a popular choice for guaranteed retirement income.

910,000 residents age 65+

Colorado pairs an active retirement lifestyle with one of the more generous retirement income deductions in the country for those 65 and older. With roughly 910,000 residents age 65 and older, Colorado is an active market for guaranteed lifetime income.

660,000 residents age 65+

Connecticut offers a $500,000 guaranty association limit — double the national norm — and fully exempts annuity income for many middle-income retirees. With roughly 660,000 residents age 65 and older, Connecticut is an active market for guaranteed lifetime income.

210,000 residents age 65+

Delaware attracts retirees with no sales tax, low property taxes, and a pension exclusion that covers annuity income. With roughly 210,000 residents age 65 and older, Delaware is an active market for guaranteed lifetime income.

4.6 million residents age 65+

Florida is the #1 retirement destination in America, with no state income tax on annuity income. Over 4.6 million residents are age 65+, making it the largest market for life annuities in the country.

1.6 million residents age 65+

Georgia has one of the most generous retirement income exclusions in America — up to $65,000 per person at 65 and older — making annuity income largely state-tax-free for most retirees. With roughly 1.6 million residents age 65 and older, Georgia is an active market for guaranteed lifetime income.

280,000 residents age 65+

Hawaii draws retirees with its climate, though its high cost of living makes guaranteed monthly income planning especially important. With roughly 280,000 residents age 65 and older, Hawaii is an active market for guaranteed lifetime income.

330,000 residents age 65+

Idaho is one of the fastest-growing retirement destinations in the West, with a low flat income tax and outdoor lifestyle. With roughly 330,000 residents age 65 and older, Idaho is an active market for guaranteed lifetime income.

2.0 million residents age 65+

Illinois does not tax retirement income including annuity distributions, making it a surprisingly favorable state for annuity buyers despite its reputation for high taxes.

1.15 million residents age 65+

Indiana offers retirees a low flat income tax and a cost of living well below the national average. With roughly 1.15 million residents age 65 and older, Indiana is an active market for guaranteed lifetime income.

580,000 residents age 65+

Iowa exempts retirement income entirely for residents 55 and older — one of the newest and most sweeping retiree tax breaks in the country. With roughly 580,000 residents age 65 and older, Iowa is an active market for guaranteed lifetime income.

490,000 residents age 65+

Kansas fully exempts Social Security and offers retirees a low cost of living in the heart of the Midwest. With roughly 490,000 residents age 65 and older, Kansas is an active market for guaranteed lifetime income.

790,000 residents age 65+

Kentucky excludes over $31,000 per person of retirement income from its flat tax, sheltering most annuity income for typical retirees. With roughly 790,000 residents age 65 and older, Kentucky is an active market for guaranteed lifetime income.

750,000 residents age 65+

Louisiana taxes income at a flat 3% — among the lowest rates in the nation — and offers retirees a modest retirement income exclusion at 65. With roughly 750,000 residents age 65 and older, Louisiana is an active market for guaranteed lifetime income.

310,000 residents age 65+

Maine has the oldest median age in the nation, and its growing pension and retirement income deduction shelters an increasing share of annuity income. With roughly 310,000 residents age 65 and older, Maine is an active market for guaranteed lifetime income.

1.05 million residents age 65+

Maryland’s pension exclusion of roughly $40,000 for those 65 and older covers employer pension and annuity income. With roughly 1.05 million residents age 65 and older, Maryland is an active market for guaranteed lifetime income.

1.25 million residents age 65+

Massachusetts taxes most retirement income at a 5% flat rate, making the after-tax comparison between carriers especially worthwhile. With roughly 1.25 million residents age 65 and older, Massachusetts is an active market for guaranteed lifetime income.

1.8 million residents age 65+

Michigan offers significant tax benefits for retirees, with many residents able to deduct substantial retirement income from state taxes. The state's 1.8 million seniors represent a strong annuity market.

980,000 residents age 65+

Minnesota taxes most retirement income, but its guaranty association protects annuities in payout status up to $410,000 — among the highest limits in the nation. With roughly 980,000 residents age 65 and older, Minnesota is an active market for guaranteed lifetime income.

490,000 residents age 65+

Mississippi exempts qualified retirement income entirely — including retirement-plan annuities — and has the lowest cost of living in the country. With roughly 490,000 residents age 65 and older, Mississippi is an active market for guaranteed lifetime income.

1.1 million residents age 65+

Missouri fully exempts Social Security and offers retirees a cost of living about 12% below the national average. With roughly 1.1 million residents age 65 and older, Missouri is an active market for guaranteed lifetime income.

220,000 residents age 65+

Montana has no sales tax and a growing retiree population drawn to its outdoor lifestyle. With roughly 220,000 residents age 65 and older, Montana is an active market for guaranteed lifetime income.

320,000 residents age 65+

Nebraska now fully exempts Social Security, and its low unemployment and steady economy make it a stable place to retire. With roughly 320,000 residents age 65 and older, Nebraska is an active market for guaranteed lifetime income.

530,000 residents age 65+

Nevada has no state income tax, making every dollar of annuity income state-tax-free — though buyers should know about its premium tax on non-qualified purchases. With roughly 530,000 residents age 65 and older, Nevada is an active market for guaranteed lifetime income.

280,000 residents age 65+

New Hampshire completed the repeal of its interest and dividends tax in 2025, leaving annuity and retirement income entirely untaxed at the state level. With roughly 280,000 residents age 65 and older, New Hampshire is an active market for guaranteed lifetime income.

1.6 million residents age 65+

New Jersey offers a $500,000 guaranty limit for annuities in payout status and excludes up to $100,000 of retirement income for qualifying couples 62 and older. With roughly 1.6 million residents age 65 and older, New Jersey is an active market for guaranteed lifetime income.

400,000 residents age 65+

New Mexico combines a low cost of living with an $8,000 retirement income exemption at 65 and largely tax-free Social Security. With roughly 400,000 residents age 65 and older, New Mexico is an active market for guaranteed lifetime income.

3.2 million residents age 65+

New York is home to 3.2 million residents over 65. The state has some of the strictest annuity regulations in the country, which protects consumers but also means working with knowledgeable brokers is essential.

1.8 million residents age 65+

North Carolina is an increasingly popular retirement destination with moderate taxes, a mild climate, and 1.8 million residents over 65 seeking guaranteed retirement income.

130,000 residents age 65+

North Dakota has some of the lowest income tax rates in the country — a top rate of just 2.5% on annuity income. With roughly 130,000 residents age 65 and older, North Dakota is an active market for guaranteed lifetime income.

2.1 million residents age 65+

Ohio offers a retirement income credit and relatively low cost of living, making annuities an attractive option for the state's 2.1 million seniors looking for guaranteed income.

660,000 residents age 65+

Oklahoma pairs a $300,000 guaranty association limit with a $10,000 per-person retirement income exclusion and a very low cost of living. With roughly 660,000 residents age 65 and older, Oklahoma is an active market for guaranteed lifetime income.

800,000 residents age 65+

Oregon has no sales tax, though its high income tax rates make the tax-free return-of-principal feature of non-qualified SPIAs especially valuable. With roughly 800,000 residents age 65 and older, Oregon is an active market for guaranteed lifetime income.

2.4 million residents age 65+

Pennsylvania is one of the most tax-friendly states for retirees. Annuity income is fully exempt from state income tax once you reach retirement age, making it an excellent state for life annuity buyers.

200,000 residents age 65+

Rhode Island allows retirees at full retirement age to exclude up to $20,000 of pension and annuity income within income limits. With roughly 200,000 residents age 65 and older, Rhode Island is an active market for guaranteed lifetime income.

1.0 million residents age 65+

South Carolina is one of the fastest-growing retirement destinations on the East Coast, with stacked age-based deductions and a $300,000 guaranty limit. With roughly 1.0 million residents age 65 and older, South Carolina is an active market for guaranteed lifetime income.

160,000 residents age 65+

South Dakota has no state income tax and consistently ranks among the most tax-friendly states for retirees. With roughly 160,000 residents age 65 and older, South Dakota is an active market for guaranteed lifetime income.

1.2 million residents age 65+

Tennessee has no state income tax and no tax on retirement income of any kind, plus one of the lowest overall tax burdens in America. With roughly 1.2 million residents age 65 and older, Tennessee is an active market for guaranteed lifetime income.

3.7 million residents age 65+

Texas offers retirees no state income tax and a growing population of seniors. With 3.7 million residents over 65, it's one of the largest annuity markets in the US.

400,000 residents age 65+

Utah taxes income at a flat 4.55% with a modest retirement credit, and St. George has become one of the West’s fastest-growing retirement hubs. With roughly 400,000 residents age 65 and older, Utah is an active market for guaranteed lifetime income.

150,000 residents age 65+

Vermont taxes most retirement income as ordinary income, making carrier-by-carrier rate comparison the main lever for maximizing after-tax income. With roughly 150,000 residents age 65 and older, Vermont is an active market for guaranteed lifetime income.

1.45 million residents age 65+

Virginia offers an age deduction of up to $12,000 at 65 and a large, growing retiree population across the state. With roughly 1.45 million residents age 65 and older, Virginia is an active market for guaranteed lifetime income.

1.35 million residents age 65+

Washington has no state income tax and a $500,000 guaranty association limit — the strongest combination of tax treatment and annuity protection in the country. With roughly 1.35 million residents age 65 and older, Washington is an active market for guaranteed lifetime income.

400,000 residents age 65+

West Virginia finished phasing out its Social Security tax in 2026 and offers retirees one of the lowest costs of living in the East. With roughly 400,000 residents age 65 and older, West Virginia is an active market for guaranteed lifetime income.

1.1 million residents age 65+

Wisconsin protects annuity benefits up to $300,000 through its guaranty fund — higher than the typical state limit. With roughly 1.1 million residents age 65 and older, Wisconsin is an active market for guaranteed lifetime income.

110,000 residents age 65+

Wyoming has no state income tax and routinely tops rankings of the most tax-friendly states for retirees. With roughly 110,000 residents age 65 and older, Wyoming is an active market for guaranteed lifetime income.