OAS Clawback Calculator

ExampleNet income $95,000 · OAS $8,724/yr · $10,000 RRSP withdrawal

Home/Calculators/OAS Clawback
Income year:
✅No OAS Clawback2025 · Threshold $93,454
No clawback: $64,454 below thresholdOAS kept: $743/moRetained: 100%
OAS Recovery Tax Estimator
👤Your Age Group
OAS increases 10% permanently at age 75. Affects your payment amount and the full-clawback threshold.
Max OAS: $743.05/mo (Apr–Jun 2026)
🏛️Your OAS Amount
OAS Start Age?
yrs
Deferral boost+0.0%
Monthly OAS$743.05/mo
Annual OAS$8,917/yr
💰Annual Income Sources
CPP Payments?
$
Pension / RPP?
$
Investment Income?
$
Other Income?
$
📤RRIF / RRSP Withdrawal
Planned Annual Withdrawal?
$
Income Safety$64k below clawback zone
$0▲ $93,454$152,062
Monthly OAS After Clawback
$743/mo
$8,917/yr
Monthly Clawback
$0/mo
−$0/yr
OAS Retained
100%
of $743/mo entitlement
Income Over Threshold
$0
$64k headroom
📊Clawback Breakdown
CPP$9,000
Pension / RPP$0
Investment Income$0
Other Income$0
RRIF / RRSP Withdrawal$20,000
Total Net Income$29,000
2025 Threshold$93,454
Income Over Threshold$0
Clawback (15%)$0.00
OAS After Clawback (annual)$8,917/yr
OAS After Clawback (monthly)$743/mo
📉OAS Retained at Each Income Level
📋CRA Clawback Thresholds
Jul 2025 – Jun 2026
Income year: 2024
Starts at$90,997
Full clawback (65–74)$148,451
Full clawback (75+)$154,196
◀ Active selection
Jul 2026 – Jun 2027
Income year: 2025
Starts at$93,454
Full clawback (65–74)$152,062
Full clawback (75+)$157,923
Jul 2027 – Jun 2028
Income year: 2026 est.
Starts at$95,323
Full clawback (65–74)$154,753
Full clawback (75+)$160,696
CRA – OAS recovery tax ↗
💡Strategies to Reduce Clawback▲
▸TFSA withdrawals: don't count as income - prefer TFSA over RRIF for spending 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: you get 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 above the threshold.
▸Capital gains timing: large capital gains are income - consider spreading dispositions across years to stay below the threshold.
🔍How the Recovery Tax Works▼
🔗Retirement Calculators▼

What's Next?

RRIF Minimum WithdrawalProject mandatory RRIF withdrawals year-by-year - they directly affect your OAS clawbackCPP & OAS TimingDeferring OAS to age 70 gives 36% more income - often with less clawback riskAccount OptimizerRRSP vs TFSA priority - TFSA withdrawals never trigger OAS clawbackSalary & TaxModel CPP, OAS, and pension income together with your marginal tax rate

OAS recovery tax thresholds: 2024 income = $90,997 · 2025 income = $93,454 (effective Jul 2026–Jun 2027) · 2026 estimated = $95,323. Source: canada.ca. OAS max Apr–Jun 2026: $743.05/mo at 65–74, $817.36/mo at 75+. Tax estimates use gross income - actual clawback based on CRA line 23600. Not financial advice.

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About this calculator

Updated April 2026

OAS clawback (officially 'OAS Recovery Tax') kicks in at $93,454 of net world income in 2026 and claws back 15 cents of every dollar above that threshold - fully eliminating OAS at around $151,668. 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.

Frequently asked questions

What income triggers OAS clawback in 2026?

The OAS recovery tax (clawback) applies when your net world income exceeds $93,454 in 2026 (indexed annually). You repay 15% of income above that threshold, and OAS is fully eliminated at approximately $151,668. 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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