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
Net OAS payment · Jul 2026 – Jun 2027
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
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 year | Payment period | Clawback starts at | Full clawback (65-74) | Full clawback (75+) |
|---|---|---|---|---|
| 2024 | Jul 2025 – Jun 2026 | $90,997 | $148,451 | $154,196 |
| 2025 | Jul 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 2026OAS 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
- Service Canada: OAS recovery tax (checked 2026-11-09)
- Service Canada: OAS payment amounts (checked 2026-11-09)
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.
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