Check how much of your Old Age Security pension will be clawed back. If your net income is above the threshold, you repay 15% of the excess through the OAS recovery tax. The threshold is $93,454 for 2025 income and $95,323 for 2026 income. A 70-year-old with $110,000 of net income in 2026 loses about $2,201.55 a year.
OAS Clawback Calculator
Old Age Security recovery tax for 2025 and 2026 income · Updated October 12, 2026
- Withheld from each monthly payment
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- OAS you keep per year
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- Clawback starts at
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- OAS fully clawed back at about
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- Maximum OAS used
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Uses the maximum OAS for October to December 2026, which is indexed every quarter, so the exact amounts will move a little.
OAS amounts and clawback thresholds
| Ages 65 to 74 | Age 75 and over | |
|---|---|---|
| Maximum monthly OAS, October to December 2026 | $762.50 | $838.75 |
| Clawback starts (2025 income, July 2026 to June 2027) | $93,454 | $93,454 |
| OAS fully clawed back (2025 income) | $152,062 | $157,923 |
| Clawback starts (2026 income, July 2027 to June 2028) | $95,323 | $95,323 |
| OAS fully clawed back (2026 income, government estimate) | $155,320 | $161,320 |
How the recovery tax works
- The clawback is 15% of your individual net income (line 23600 of your return) above the threshold.
- It is withheld from your monthly OAS payments from July of the following year, based on your last tax return, and settled when you file.
- The clawback is per person, not per couple, so spouses each have their own threshold.
Examples (2026 income)
| Net income | Age | Clawback per year | OAS kept per year |
|---|---|---|---|
| $90,000 | 65–74 | $0 | $9,150.00 |
| $110,000 | 65–74 | $2,201.55 | $6,948.45 |
| $130,000 | 75+ | $5,201.55 | $4,863.45 |
| $160,000 | 65–74 | $9,150.00 (all of it) | $0 |
Ways to reduce the clawback
- Split eligible pension income with your spouse on your tax return.
- Draw down RRSP or RRIF money before 65, or in lower-income years, to smooth your income.
- Use a TFSA: withdrawals don't count as income.
- Delay OAS: it rises 0.6% for every month you defer after 65, up to 36% at age 70, which can help if you expect high income in your late 60s.
FAQ
Does the clawback apply if I live outside Canada?
Non-residents file an annual Old Age Security Return of Income instead, and the same recovery tax applies.
Do capital gains count?
Yes. The taxable half of capital gains, grossed-up dividends and RRIF withdrawals all increase net income and can trigger the clawback.
Related calculators
- TFSA Contribution Room CalculatorIncome that doesn't affect OAS
- CPP and EI Calculator 2026CPP contributions
Sources
Figures current as of October 12, 2026
Each formula is checked against a separate test sheet with at least three worked examples. Results are estimates based on the numbers you enter and the published rules; your actual figures may differ. This is general information, not financial or tax advice.
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