This article has been updated
The content you were looking for has been consolidated into a new, single-page article for easier reading.
Read the updated article here →
We recommend bookmarking the new page for future reference.
Ask an Expert 866-866-1999
Use Our Free Instant Annuity Calculators & Tools...
Ask an Expert
866-866-1999
Call 866-866-1999 to speak with an annuity specialist. It's free and there is no obligation.(M-F, 9-5 EST)
More On Taxation of Annuities
- Understanding the Taxation of Fixed Index and Multi-Year Guarantee Annuities
- What is the Tax Qualification of an Annuity?
- How an Income Annuity Can Help Distribute Your Tax Burden
- Your Guide To The Taxation of Immediate And Deferred Income Annuities
- How Annuities Are Taxed — What You Don’t Know Can Cost You Featured article
- How An Annuity Can Help You Avoid Early Withdrawal Penalties
- Are Your Annuities Aggregated? What this IRS Rule Means for Your Withdrawal Taxes
- Experts Highlight the Tax Benefits of Annuities
- Annuitizing Can Allow You to Tap Your Nest Egg Tax-Free
We'd love to hear from you!
Please post your comment or question. It's completely safe – we never publish your email address.
Comments (2)
Kyle
2022-08-09 06:38:57
Hi Joanne,
Thank you for reaching out!
Yes, state income taxes would apply as well, if you're residing in a state that charges state income taxes.
- Kyle
Joanne M.
2022-08-08 16:51:36
I know you have to pay federal income tax on the interest earned from a non qualified immediate annuity. Do you also need to pay state income tax too if you reside in a state that has state income tax? I am thinking of moving from Florida that has no state income tax to Colorado that has state income tax.