OAS Clawback Calculator 2026

Rates verified Nov 2026 · Sources: CRA, Service Canada

ExampleOther income $60,000 · CPP $9,000/yr · $20,000 RRSP withdrawal - net income ~$95,000, over the clawback threshold

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Income year:
🛡️OAS Clawback Calculator

Net OAS payment · Jul 2026 – Jun 2027

$704/mo after clawback · 2025 net income $98,150 · −$59/mo withheld
⚠ Recovery tax applies·OAS entitlement $763/mo·Annual net OAS $8,446·Recovery tax −$704/yr

Monthly clawback

−$59

$704/yr recovery tax

OAS retained

0.9%

of $763/mo entitlement

Net income

$98,150

2025 net income

Over threshold

$4,696

$4,696 above threshold

👤Age & OAS amount
OAS increases 10% permanently at age 75. Affects your payment and the full-clawback threshold.
Max OAS: $762.5/mo (Oct–Dec 2026)
yrs
Deferral boost+0.0%
Monthly OAS$762.50/mo
Annual OAS$9,150/yr
💰Annual net income
$
$
$
$
$
Total net income$98,150
2025 threshold$93,454
Recovery tax (15%)−$704
Income safety$56k until full clawback
$0▲ $93,454$154,454
📊Clawback breakdown
CPP / QPP$9,000
Pension / RPP$0
Investment income$0
Other income$60,000
RRIF / RRSP withdrawal$20,000
Total net income$98,150
2025 threshold$93,454
Income over threshold$4,696
Clawback (15%)−$704
OAS after clawback (annual)$8,446
OAS after clawback (monthly)$704/mo
⚠️RRIF withdrawal impact
OAS without RRIF withdrawal$9,150/yr
OAS with RRIF withdrawal$8,446/yr
Extra clawback from withdrawal−$704/yr
Your $20,000 RRIF withdrawal costs an extra $704/yr in OAS clawback ($59/mo). Consider shifting spending to TFSA instead.
📉OAS retained at each income level
📋CRA clawback thresholds
Jul 2025 – Jun 2026
2024 net income
Starts at$90,997
Full clawback (65–74)$148,451
Full clawback (75+)$154,196
◀ Active selection
Jul 2026 – Jun 2027
2025 net income
Starts at$93,454
Full clawback (65–74)$152,062
Full clawback (75+)$157,923
Jul 2027 – Jun 2028
2026 net income (est.)
Starts at$95,323
Full clawback (65–74)$155,320
Full clawback (75+)$161,320
CRA – OAS recovery tax ↗
▸ TFSA withdrawals: don't count as income - prefer TFSA over RRIF when near the threshold.
▸ RRSP meltdown: draw down RRSP between ages 60–71 before OAS begins to reduce future RRIF minimums.
▸ Pension income splitting: split eligible pension income with a lower-income spouse to halve each person's net income.
▸ Defer OAS to 70: +36% more OAS - often with less clawback once the RRIF balance has shrunk.
▸ Smooth RRIF withdrawals: take more in low-income years and less in high-income years to avoid spikes.
▸ Capital gains timing: large capital gains are income - spread dispositions across years to stay below the threshold.

What's Next?

OAS recovery tax: 2024 income threshold $90,997 (Jul 2025–Jun 2026) · 2025 income $93,454 (Jul 2026–Jun 2027) · 2026 est. $95,323. Repayment = 15% of net income above threshold, capped at your OAS entitlement. Source: canada.ca. OAS max Oct–Dec 2026: $762.5/mo at 65–74, $838.75/mo at 75+. Estimates use gross income components - actual clawback based on CRA line 23600. Not financial advice.

OAS clawback thresholds, 2024-2026

The OAS recovery tax (clawback) is based on your net income for a prior tax year, not the calendar year the payments are made in. For example, the Jul 2026-Jun 2027 payment period uses your 2025 net income. The 2026 income-year row is Service Canada's estimate, based on maximum OAS amounts.

Income yearPayment periodClawback starts atFull clawback (65-74)Full clawback (75+)
2024Jul 2025 – Jun 2026$90,997$148,451$154,196
2025Jul 2026 – Jun 2027$93,454$152,062$157,923
2026 (est.)Jul 2027 – Jun 2028$95,323$155,320$161,320

"Full clawback" is the income level where the entire OAS pension is clawed back. Figures are the maximum income recovery thresholds published by Service Canada (OAS recovery tax page), which use OAS amounts across the whole July-June recovery period.

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About this calculator

Updated November 2026

OAS clawback (officially 'OAS Recovery Tax') for the current Jul 2026-Jun 2027 benefit period kicks in at $93,454 of 2025 net world income and claws back 15 cents of every dollar above that threshold - fully eliminating OAS at around $152,062 (ages 65-74) or $157,923 (75+). This calculator shows exactly how much OAS you'll lose based on your projected retirement income and suggests strategies to stay below the threshold.

What you can do with it

  • See your OAS clawback amount at different RRIF withdrawal levels.
  • Model drawing down RRSP before 65 to reduce post-65 RRIF minimums.
  • Compare pension-income splitting with a spouse to avoid clawback.
  • See how much TFSA withdrawals help (they don't count as income).

How the math works

Clawback = 15% × (net world income − $93,454), capped at the full OAS amount you're receiving. Net world income includes employment, CPP, OAS, RRIF withdrawals, eligible dividends grossed-up, capital gains (taxable half), and rental income. TFSA withdrawals, return of capital, and principal on non-registered investments don't count.

Canadian context - 2026

A retiree drawing $50,000/year from a $1M RRIF plus $25,000 CPP + $9,000 OAS sits at $84,000 - safely below clawback. The same retiree drawing $80,000 RRIF + $25,000 CPP + $9,000 OAS loses roughly $3,200 of OAS to clawback. Shifting $30,000 of that draw to a TFSA withdrawal eliminates the clawback.

Official sources

Frequently asked questions

What income triggers OAS clawback in 2026?

The OAS recovery tax (clawback) is based on net world income for the prior tax year. For 2025 net income (affecting Jul 2026-Jun 2027 OAS payments), the threshold is $93,454; for 2026 net income it's an estimated $95,323 (confirmed by CRA each year). You repay 15% of income above that threshold - including the OAS payment itself - up to a full-clawback level around $156,000-$162,000 depending on your age. Income includes RRIF withdrawals, CPP, employment income, and investment income.

How can I reduce OAS clawback?

Common strategies include: (1) drawing down RRSP/RRIF before age 65 to reduce future withdrawals; (2) income-splitting eligible pension income with a lower-income spouse; (3) deferring OAS to 70 while keeping income lower in earlier retirement years; (4) using TFSA withdrawals which do not count as income.

Do TFSA withdrawals count toward OAS clawback income?

No. TFSA withdrawals are not considered income for any purpose, including OAS clawback calculations. This makes a large TFSA one of the most effective tools to fund retirement spending without triggering the OAS recovery tax.

Long-form explainers that pair with this calculator.