Rates verified Oct 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
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: $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.
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 below is an estimate until CRA confirms it (usually in the following year's indexation announcement).
| Income year | Payment period | Clawback starts at | Full clawback (65-74) | Full clawback (75+) |
|---|---|---|---|---|
| 2024 | Jul 2025 – Jun 2026 | $90,997 | $151,997 | $158,097 |
| 2025 | Jul 2026 – Jun 2027 | $93,454 | $154,454 | $160,554 |
| 2026 (est.) | Jul 2027 – Jun 2028 | $95,323 | $156,323 | $162,423 |
"Full clawback" is the income level where the entire OAS pension is clawed back - computed as the threshold plus annual OAS divided by the 15% clawback rate, so it always matches the current OAS maximum rather than a fixed, aging number.
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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.
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) 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.
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.