OAS Clawback Calculator 2026
When net income passes the annual recovery threshold, the government recovers 15 cents of Old Age Security for every extra dollar. This calculator shows your exposure for the income year and the OAS payment period it affects.
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How the recovery tax works
The clawback is based on your net world income for a calendar year. Income above the threshold is multiplied by 15%, up to the total OAS you received. The recovery is then applied to the OAS payment period that runs from July of the following year through June of the year after — so 2025 income affects payments from July 2026 to June 2027.
The threshold is indexed to inflation each year. For the 2025 income year it sits around $93,454, and OAS is fully clawed back once income reaches roughly $151,668 for those aged 65–74 (the full-recovery ceiling is higher for those 75+ because their OAS is larger). The key number to watch is your net income (line 23600), not your gross — deductions like RRSP contributions and certain expenses reduce it.
Why the clawback feels like an extra tax bracket
Between the threshold and the full-recovery ceiling, every additional dollar of income costs you 15 cents of OAS on top of your regular income tax. For someone already in a 30% marginal bracket, that's an effective marginal rate of about 45% on income in the clawback zone. This is why retirees with incomes near the threshold pay close attention to anything that bumps their income up — a large RRIF withdrawal, a capital gain, or converting an RRSP all at once.
Managing exposure
Common levers people discuss with their advisors include the order of withdrawals across account types, pension income splitting with a spouse, and the timing of large one-time income events like property sales. Each has trade-offs beyond OAS alone.
A few specific strategies come up repeatedly. Drawing from a TFSA instead of a RRIF avoids adding to net income, because TFSA withdrawals don't count. Splitting eligible pension income with a lower-earning spouse can pull the higher earner back under the threshold. Realizing capital gains in lower-income years, or spreading a large withdrawal across two calendar years, can keep any single year below the ceiling. And delaying OAS itself to age 70 — which raises the monthly amount but also the income at which full clawback occurs — sometimes helps higher-income retirees. None of these is universally right; they depend on your whole picture.
Worked example
Say your 2026 net income (before OAS) is $105,000 and your OAS for the year is the 65-74 maximum of about $8,916.60. You’re $9,677 above the $95,323 threshold, so the recovery tax is 15% of that: about $1,451.55 for the year. You’d keep roughly $7,465 of your OAS after the clawback — not zero, but a meaningful bite, and it stacks on top of regular income tax on the same dollars.
Who the clawback actually affects
It's worth keeping perspective: the large majority of OAS recipients never face the clawback at all, because their income is below the threshold. It primarily affects retirees with substantial pension income, large RRIF balances, or significant investment income. If your retirement income is modest, the clawback may be irrelevant to you — and you may instead qualify for the Guaranteed Income Supplement, which tops up low-income seniors. Our GIS estimator covers that side.
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Frequently asked questions
How much can I earn before the OAS clawback?
The OAS clawback (recovery tax) starts once your net world income passes an annual threshold — about $93,454 for the 2025 income year, indexed each year. Below that, you keep your full OAS. Above it, you repay 15 cents of OAS for every extra dollar, until OAS is fully clawed back around $151,668 for ages 65–74 (higher for 75+). It’s your net income on line 23600 that counts, so RRSP contributions and some deductions can pull you back under the threshold. See the OAS recovery tax.
What age can I start OAS?
You can start Old Age Security at age 65. (An earlier plan to raise the age to 67 was cancelled, so 65 still applies.) You can also choose to delay OAS up to age 70 in exchange for a permanently higher monthly payment — about 0.6% more for each month you wait, up to 36% more at 70. See Government of Canada: OAS eligibility.
What are the OAS residency requirements?
OAS is based on how long you’ve lived in Canada, not on work or contributions. If you live in Canada, you need at least 10 years of residence after age 18 to qualify. If you live outside Canada, you need at least 20 years. Time lived in a country that has a social security agreement with Canada may help you meet the minimum. See OAS eligibility.
How do I get the full OAS pension?
To receive the full OAS pension you generally need 40 years of residence in Canada after age 18. With fewer years, you receive a partial pension calculated as 1/40th of the full amount for each year of residence — for example, 30 years of residence gives you 30/40ths of the full pension. The full and partial amounts are the same regardless of income, but high income can trigger the recovery tax (clawback).
When should I apply for OAS?
Many people are enrolled automatically. Service Canada sends a letter the month after your 64th birthday if you’ve been auto-enrolled. If you don’t receive that letter, you should apply yourself, ideally about six months before you want payments to start (you can apply up to 11 months ahead). If you want to delay OAS past 65 for a larger payment, you simply apply later. Learn more about OAS.
How do I apply for OAS?
If you’re not auto-enrolled, you can apply online through your My Service Canada Account, or by mail using the paper application form (ISP-3000). You’ll need your Social Insurance Number and banking details for direct deposit. Service Canada will confirm your eligibility and start date. See how to apply for OAS.
How do I track my OAS application?
You can check the status of your OAS application by signing in to your My Service Canada Account, which shows whether your application is in progress, approved, or needs more information. You can also call Service Canada if you don't use the online account.
When are OAS payments made?
OAS is paid monthly, usually in the last few business days of each month, by direct deposit or cheque. The exact dates change each year, and the maximum amount is reviewed quarterly (January, April, July, and October) to keep pace with inflation. See the benefits payment calendar for the current year’s dates.
Is OAS taxable, and what is the clawback?
Yes, OAS is taxable income. On top of regular income tax, higher-income seniors face the OAS recovery tax (the “clawback”): if your net income is above the annual threshold, you repay 15 cents of OAS for every dollar over it, until your OAS is fully recovered. The GIS, by contrast, is not taxable. See the OAS recovery tax.