ExampleNet income $95,000 · OAS $8,724/yr · $10,000 RRSP withdrawal
Net OAS payment · Jul 2026 – Jun 2027
Monthly clawback
$0
below threshold
OAS retained
1.0%
of $743/mo entitlement
Net income
$29,000
2025 net income
Headroom
$64,454
before $93,454 clawback
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 Apr–Jun 2026: $743.05/mo at 65–74, $817.36/mo at 75+. Estimates use gross income components - actual clawback based on CRA line 23600. Not financial advice.
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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.
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.
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.
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.
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.
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.