RetirePay CanadaOAS clawback 2026: threshold and calculator
Updated October 17, 2026 · Figures for October–December 2026 unless stated
For 2026 income, the OAS clawback (officially the OAS pension recovery tax) starts at a net income of $95,323. Above that, OAS is reduced by 15 cents for every dollar of net income, until it is gone.
OAS clawback calculator
How the clawback is calculated
Take your net income, subtract $95,323, and multiply by 15%. That is the amount of OAS you repay for the year, up to the OAS you received. Each spouse is assessed separately on their own net income.
At the October–December 2026 rates, a full OAS pension is $762.50 a month at 65 to 74 ($9,150 a year) and $838.75 from 75. At those rates it would be fully clawed back at a net income of about $156,300 at 65 to 74, and about $162,400 from 75. Service Canada's published cut-offs follow its July-to-June recovery period, so they differ slightly.
What counts as income
- Counts: RRSP and RRIF withdrawals, CPP, workplace pensions, employment income, interest, the taxable part of dividends and capital gains, and OAS itself.
- Does not count: TFSA withdrawals and GIS.
That is why the order you draw from savings can change how much OAS you keep. Splitting eligible pension income with a spouse can also change each person's net income.
When it is collected
Service Canada withholds the recovery tax from your monthly OAS payments based on your most recent tax return. The final amount is settled when you file your return for the year.
See the clawback in your own plan. RetirePay Canada combines CPP, OAS, GIS, RRSP, TFSA and other savings to estimate the monthly income your plan could support, after tax and in today's dollars.
Sources
General information, not financial, tax or legal advice. Amounts are rounded estimates; Service Canada and the Canada Revenue Agency determine actual payments. RetirePay Canada is independent and not affiliated with the Government of Canada.