How to use the OAS Clawback Calculator
- 1 Enter your net income.
- 2 Enter the OAS you receive in the year.
- 3 Read the clawback and the OAS you keep.
- 4 Check the income where OAS disappears.
Worked example
A retiree with $110,000 of net income receiving $8,900 of OAS. Income above the $95,323 threshold is $14,677, so the clawback is 15% of that, $2,201.55. You keep about $6,698 of your OAS. Splitting eligible pension income with a spouse could lower your net income and reduce the clawback.
Features
2026 threshold
Recovery tax starts at $95,323.
15% rate
Clawback is 15% of income above the threshold.
Break-even income
Income at which OAS is fully recovered.
When to use it
Retirement income
Plan RRIF withdrawals.
Pension splitting
See the effect of splitting pension income.
Deferring OAS
Weigh delaying OAS to age 70.
Selling assets
Check how a gain affects OAS.
Frequently asked questions
What is the OAS clawback?
The OAS recovery tax reduces OAS by 15% of net income above a threshold, $95,323 for 2026.
Which income counts?
Your net income, including pensions, RRIF withdrawals, taxable capital gains, grossed-up dividends and OAS itself.
How is it collected?
It is withheld from your monthly OAS payments based on your income two years earlier, and settled on your return.
How can I reduce it?
Pension income splitting, TFSA savings, timing RRSP withdrawals and deferring OAS can help.
When is OAS fully clawed back?
When net income is high enough that 15% of the excess equals your OAS, about $155,000 for most seniors under 75.
Does the clawback affect GIS?
GIS uses separate income rules and is for lower-income seniors.
How much is OAS?
OAS pays about $8,900 a year for people aged 65 to 74 in 2026 and 10% more from age 75. The amount is adjusted every quarter for inflation.
Does deferring OAS help?
Deferring to age 70 raises OAS by 0.6% a month, up to 36%, and can avoid clawback during high-income years.
Do TFSA withdrawals count?
No. TFSA withdrawals are not income, so they never cause a clawback.
Can a large capital gain trigger it?
Yes. Taxable capital gains count, so a large sale in one year can cause a big clawback.
Who qualifies for OAS?
Most Canadians aged 65 or older who have lived in Canada for at least 10 years after age 18. A full pension needs 40 years of residence.
What is line 23400?
Net income before adjustments on your tax return, the figure the clawback is based on.
Can I get the clawback back?
If too much was withheld from your OAS, the CRA refunds it when you file your tax return.
Results are estimates based on the official rates linked above. Confirm important figures with the issuing authority or a qualified adviser before you act on them.
Reviewed by ToolsUnlocked Team · Last updated