OAS Clawback Calculator 2026
Calculate how much of your Old Age Security will be clawed back based on your income.
tl;dr
The OAS clawback is a recovery tax. Your pension is still paid every month, then part or all of it is taken back once net income passes the annual threshold ($95,323 in 2026) — an extra layer on top of your marginal tax rate. Seniors 75+ receive a higher pension, so it takes more income to recover all of it. OAS is also prorated if you have fewer than 40 years of Canadian residency after age 18 (a minimum of 10 years is required for eligibility).
OAS Clawback Calculator
Enter your income details to calculate your OAS clawback.
Your pension is paid in full each month, then the recovery tax takes back 15 cents of every dollar of net income above the threshold.
Your Information
2027/2028 OAS Recovery Tax Schedule
Based on your 2026 net income, threshold $95,323. Your pension is paid in full and then recovered: every OAS payment from July 2027 to June 2028 is reduced by one twelfth of the 15% recovery tax on that return.
Enter your income and calculate to see the deduction on each payment.
The recovery tax can never exceed the whole year's pension, and OAS is re-indexed every quarter, so 2026's total depends on all four of its rates.
Jul – Dec 2027
recovery period
Jan – Jun 2028
Plan ahead for the next recalculation: the recovery tax from July 2028 is set by your 2027 return. An RRSP contribution before the February 29, 2028 deadline lowers your 2027 net income and cuts the deduction for the whole 2028/2029 period.
Income dropping this year? If your 2027 income will be lower than 2026's, Form T1213(OAS) asks Service Canada to reduce the recovery tax being withheld now rather than waiting for next July.
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Why OAS Clawback Matters
Old Age Security is a significant source of retirement income for most Canadians, but the recovery tax can reduce or eliminate it for higher-income retirees. In the clawback zone, the recovery acts like an extra layer on top of your regular marginal rate, making it one of the most heavily taxed income ranges in retirement. Understanding it is critical for retirement income planning: strategies that can minimize or avoid the clawback include delaying OAS, drawing from a TFSA instead of an RRSP, income splitting with a spouse, and planning RRIF withdrawals. Proper planning can preserve thousands of dollars of OAS each year.
What Counts as Net Income for OAS Clawback?
OAS clawback uses Line 23400 (net income before adjustments) from your tax return. Understanding what's included helps you plan withdrawals strategically.
Counts Toward Clawback
- • Employment income
- • CPP/QPP benefits
- • RRSP/RRIF withdrawals
- • Pension income (DB, DC)
- • Investment income (interest, dividends, capital gains)
- • Rental income
- • OAS itself (yes, it's circular)
Doesn't Trigger Clawback
- • TFSA withdrawals
- • GIS payments
- • Inheritances
- • Gifts received
- • Life insurance payouts
- • Lottery winnings
Planning tip: Prioritizing TFSA withdrawals over RRIF withdrawals in retirement can help you stay below the clawback threshold. How much you draw down each year follows from the size of the pot you retire with — work out how much you need to retire in Canada first, then plan the withdrawal order around it.
How OAS Clawback Is Calculated
The OAS clawback is based on your net world income:
- 1. Determine Net Income: Your net income (line 23400) includes employment, pension, RRIF withdrawals, CPP, dividends, the taxable portion of capital gains, and foreign income. It excludes TFSA withdrawals and GIS.
- 2. Compare to the Threshold: The recovery tax begins once net income passes the annual OAS threshold (indexed each year). Below it, there is no clawback. The calculator uses the current threshold.
- 3. Calculate the Excess: The clawback applies to the income above the threshold.
- 4. Apply the Recovery Rate: A fixed recovery rate on the excess reduces your OAS. The calculator applies the current rate.
- 5. Full Clawback Point: Above a higher income level, OAS is fully recovered. The calculator shows where your income lands.
- 6. How It's Collected: The clawback is recovered through reduced monthly OAS payments the following year.
OAS Clawback Thresholds
| Income Year | Recovery Tax Period | Threshold | Full Clawback (65-74) | Full Clawback (75+) |
|---|---|---|---|---|
| 2024 | July 2025 – June 2026 | $90,997 | $148,451 | $154,196 |
| 2025 | July 2026 – June 2027 | $93,454 | $152,062 | $157,923 |
| 2026 | July 2027 – June 2028 | $95,323 | $155,320 | $161,319 |
Full recovery is the income at which the recovery tax equals the whole year's pension, so it follows from the maximum OAS itself. OAS is re-indexed every quarter, and from January to September of the current tax year the last quarter's rate is not yet set, which is why those figures are estimates until October.
Common Questions
Can I avoid OAS clawback by delaying OAS?
Delaying doesn't avoid the clawback directly, but it raises your benefit for each year you wait, which can leave you ahead even with some clawback. You can also spend down RRSPs before starting OAS to lower income in your OAS years.
Do TFSA withdrawals count toward OAS clawback?
No — TFSA withdrawals aren't included in net income, so they don't trigger the clawback. That makes TFSAs especially valuable for retirees near the threshold, since the same withdrawal from an RRSP would increase the clawback.
Can I split income with my spouse to reduce clawback?
Yes. Pension income splitting lets you move eligible pension income to a spouse, which can keep one or both of you below the threshold. CPP can also be shared. Done well, this preserves OAS and lowers your household's overall tax.
What happens if I'm just over the threshold?
Even a dollar over the threshold starts the clawback, creating a cliff effect — earning a bit more can cost OAS on top of the tax on that income. That's why planning withdrawals around the threshold matters.
Is OAS clawback permanent?
No — it's recalculated annually on the previous year's income. If your income drops below the threshold in a later year, your full OAS is restored. It's really an annual income test.
Strategies to Minimize OAS Clawback
- ✓Maximize TFSA Usage: Prioritize TFSA savings and withdrawals in retirement, since they don't count toward the clawback threshold.
- ✓Plan RRSP/RRIF Withdrawals: Drawing from RRSPs before OAS starts can reduce mandatory RRIF withdrawals later that would otherwise trigger the clawback.
- ✓Delay OAS: If you have other income, delaying OAS raises your benefit and can offset future clawback.
- ✓Income Split With a Spouse: Use pension income splitting to balance income and keep both spouses below the threshold.
- ✓Consider CPP Sharing: Sharing CPP can redistribute income between spouses for tax purposes.
- ✓Plan Capital Gains Timing: Since the taxable portion of a gain counts as income, time large sales to avoid pushing into clawback territory.