OAS Clawback Calculator (2026 Thresholds)

Frequently asked questions

What is the OAS clawback threshold for 2026?

$95,323 of net income for the 2026 tax year. Income above that is subject to a 15% recovery tax, withheld from OAS payments from July 2027 to June 2028. For 2025 income the threshold was $93,454, which drives the payments from July 2026 to June 2027.

At what income is OAS fully clawed back?

Roughly $155,109 of 2026 income for people aged 65 to 74 and $161,088 for those 75 and over, according to Service Canada's estimates (final figures are published in October). The exact number moves with the quarterly OAS rate because the clawback stops once it equals the full pension.

Why is the clawback based on last year's income?

Service Canada uses your most recent filed tax return to set the withholding for the July-to-June payment period. So 2025 income determines what is withheld from July 2026, and 2026 income determines July 2027 onward. The final amount is settled on your tax return; over- or under-withholding is corrected there.

What counts as income for the clawback?

Net income on line 23400, which includes CPP, OAS itself, pensions, RRIF and RRSP withdrawals, employment and self-employment income, interest, the grossed-up value of dividends and taxable capital gains. TFSA withdrawals, the Guaranteed Income Supplement and the OAS amount repaid do not count.

How can I reduce the OAS clawback?

Lower net income in the years you receive OAS: contribute to an RRSP if you are under 72 and have room, draw from a TFSA instead of a RRIF, split eligible pension income with a spouse, hold investments that produce capital gains rather than dividends, spread capital gains over years, or defer OAS to 70 if income will be high in your late sixties. The calculator shows how much income you would need to shift to end the clawback.

Should I defer OAS to avoid the clawback?

Deferral raises OAS by 0.6% a month, up to 36% at 70, and avoids the clawback in high-income years before you start. If your income will still be above the threshold at 70, deferral only makes the clawback bigger in dollar terms because there is more OAS to claw back; the break-even depends on your income path.

Does the clawback apply to the GIS?

No. The Guaranteed Income Supplement has its own, much lower income cut-off (around $22,800 for a single person) and is reduced dollar for dollar at 50 cents per dollar of income, separately from the OAS recovery tax.

When does the OAS clawback actually come off my payments?

Income earned in 2026 is reported on the return you file in spring 2027, and the recovery tax is withheld from your OAS payments from July 2027 to June 2028. It is then reconciled on your 2027 return. There is always a one-year lag.

Do dividends and capital gains count toward the clawback?

Yes, and dividends count for more than you receive: eligible dividends are grossed up by 38% in your net income, so $10,000 of dividends counts as $13,800. Capital gains count at half. TFSA withdrawals and GIS do not count at all.

Is the clawback a cliff?

No. It is 15 cents for every dollar of net income above the threshold, so earning $1,000 over costs $150 of OAS. The full pension is gone only at roughly $150,000 of income for those under 75. Each spouse is tested on their own income.