What Is The Tax Rate On Annuities? 
Annuities are tax deferred or immediate . But all annuity gains are an ordinary income taxable event at the tax bracket of the annuity owner . Annuity gains and basis in qualified plans are also an ordinary income taxable event at the tax bracket of the annuity owner . And keep in mind that annuity income will be used in the provisional income test for Social Security benefit taxation , an ordinary income tax event as well . 