Annuity Taxes by State (2026)
Annuity gains are taxed as ordinary income federally, but how much state tax you pay depends on where you live. Choose your state for its annuity tax treatment, plus the federal rules and consumer protections that apply.
Tax-friendly states
25No state income tax, or annuity/retirement income is largely exempt.
Moderate
26Some tax on annuity income, often with retiree-friendly provisions.
General educational information, not tax advice. State groupings are directional summaries; annuity taxation depends on your situation and annuity type. Consult a qualified tax professional. Information current as of 2026.