Retiree Friendly

Illinois Annuity Rates & Guide

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

Key Facts for Illinois Annuity Buyers

No state tax on annuity/retirement income
Flat 4.95% state tax (exempt for retirement income)
2.0 million residents aged 65+
Illinois Department of Insurance provides consumer guidance
2.0 million residents age 65+

Tax Treatment of Annuity Income in Illinois

Illinois exempts all retirement income from state income tax, including annuity distributions, pension income, and Social Security. The flat 4.95% state tax rate does not apply to your annuity payments.

Remember that federal taxes still apply regardless of your state. For non-qualified annuities, only the earnings portion is taxed (the "exclusion ratio" shelters your original investment). For qualified annuities funded with pre-tax money, 100% of each payment is taxable at the federal level. Read our complete tax guide for details.

Male Annuity Rates in Illinois

Monthly income from a $100,000 SPIA for men. Rates are the same regardless of state — what differs is the after-tax amount you keep.

Male Monthly Income Rates

Updated March 2026
Carrier Rating Age 55Age 60Age 65Age 70Age 75Age 80
New York Life A++ $535/mo $575/mo $632/mo $712/mo $825/mo $988/mo
MassMutual A++ $520/mo $558/mo $615/mo $695/mo $808/mo $970/mo
Pacific Life A+ $528/mo $565/mo $622/mo $702/mo $815/mo $978/mo
Prudential A+ $515/mo $552/mo $608/mo $688/mo $798/mo $960/mo
MetLife A+ $522/mo $560/mo $618/mo $698/mo $810/mo $972/mo
Lincoln Financial A+ $510/mo $548/mo $605/mo $685/mo $795/mo $958/mo
Nationwide A+ $518/mo $555/mo $612/mo $692/mo $802/mo $965/mo
Allianz A+ $530/mo $570/mo $628/mo $708/mo $820/mo $982/mo

Rates updated March 2026. Based on $100,000 premium. Your exact rate may differ — request a personalized quote.

Female Annuity Rates in Illinois

Monthly income from a $100,000 SPIA for women. Women receive lower monthly payments but benefit from longer total income periods.

Female Monthly Income Rates

Updated March 2026
Carrier Rating Age 55Age 60Age 65Age 70Age 75Age 80
New York Life A++ $510/mo $545/mo $598/mo $672/mo $778/mo $932/mo
MassMutual A++ $495/mo $530/mo $582/mo $656/mo $762/mo $915/mo
Pacific Life A+ $502/mo $538/mo $590/mo $664/mo $770/mo $922/mo
Prudential A+ $490/mo $525/mo $578/mo $650/mo $755/mo $908/mo
MetLife A+ $498/mo $535/mo $586/mo $660/mo $765/mo $918/mo
Lincoln Financial A+ $485/mo $522/mo $575/mo $648/mo $752/mo $905/mo
Nationwide A+ $492/mo $528/mo $580/mo $654/mo $758/mo $910/mo
Allianz A+ $505/mo $540/mo $594/mo $668/mo $774/mo $928/mo

Rates updated March 2026. Based on $100,000 premium. Your exact rate may differ — request a personalized quote.

Joint Annuity Rates in Illinois

Monthly income for couples with 100% survivor benefit. The lower monthly amount covers both spouses for life.

Joint (Couple) Monthly Income Rates

Updated March 2026
Carrier Rating Age 55Age 60Age 65Age 70Age 75Age 80
New York Life A++ $475/mo $508/mo $555/mo $622/mo $715/mo $845/mo
MassMutual A++ $460/mo $493/mo $540/mo $607/mo $700/mo $830/mo
Pacific Life A+ $468/mo $500/mo $548/mo $615/mo $708/mo $838/mo
Prudential A+ $455/mo $488/mo $535/mo $602/mo $695/mo $822/mo
MetLife A+ $465/mo $498/mo $545/mo $612/mo $705/mo $835/mo
Lincoln Financial A+ $452/mo $485/mo $532/mo $600/mo $692/mo $820/mo
Nationwide A+ $458/mo $492/mo $538/mo $605/mo $698/mo $825/mo
Allianz A+ $472/mo $505/mo $552/mo $618/mo $712/mo $842/mo

Rates updated March 2026. Based on $100,000 premium. Your exact rate may differ — request a personalized quote.

Popular Retirement Cities in Illinois

Annuity buyers in Illinois are concentrated in the state's largest metro areas:

  • Chicago, IL
  • Aurora, IL
  • Naperville, IL
  • Rockford, IL
  • Springfield, IL

No matter where you live in Illinois, you can compare rates from national carriers. Annuity rates are determined by the insurance company, not your location — but your state's tax treatment affects how much you keep.

Get Your Illinois Annuity Quote

See what a $100,000+ annuity would pay you monthly, with Illinois's tax advantages factored in. Free, no-obligation quote in 2 minutes.

Get Your Free Illinois Quote

Trusted by Americans in all 50 states

A+ Rated Carriers
25+ Years Experience
No-Obligation Quotes
Independent & Unbiased