OAS Clawback Calculator
The OAS Recovery Tax (clawback) reduces your Old Age Security if your income is too high.
2026 OAS Clawback Thresholds
| Threshold |
Amount |
| Clawback starts |
$90,997 |
| Full clawback (OAS = $0) |
~$148,476 |
| Recovery rate |
15% of excess |
| Maximum OAS (age 65-74) |
$727.67/month |
| Maximum OAS (age 75+) |
$800.44/month |
OAS Clawback by Income Level
Age 65-74 (Max OAS: $8,732/year)
| Net Income |
Excess Over Threshold |
Clawback |
OAS Remaining |
| $90,000 |
$0 |
$0 |
$8,732 |
| $95,000 |
$4,003 |
$600 |
$8,132 |
| $100,000 |
$9,003 |
$1,350 |
$7,382 |
| $110,000 |
$19,003 |
$2,850 |
$5,882 |
| $120,000 |
$29,003 |
$4,350 |
$4,382 |
| $130,000 |
$39,003 |
$5,850 |
$2,882 |
| $140,000 |
$49,003 |
$7,350 |
$1,382 |
| $148,476+ |
$57,479+ |
$8,732+ |
$0 |
Age 75+ (Max OAS: $9,605/year)
| Net Income |
Clawback |
OAS Remaining |
| $90,000 |
$0 |
$9,605 |
| $100,000 |
$1,350 |
$8,255 |
| $120,000 |
$4,350 |
$5,255 |
| $140,000 |
$7,350 |
$2,255 |
| $155,027+ |
$9,605+ |
$0 |
Monthly Impact
| Annual Income |
Monthly Clawback |
Monthly OAS Received |
| $95,000 |
$50 |
$678 |
| $100,000 |
$113 |
$615 |
| $110,000 |
$238 |
$490 |
| $120,000 |
$363 |
$365 |
| $130,000 |
$488 |
$240 |
What Counts as Income?
Income sources that trigger clawback:
| Included |
Not Included |
| Employment income |
TFSA withdrawals |
| CPP/QPP benefits |
GIS payments |
| RRSP/RRIF withdrawals |
Workers comp |
| Pension income |
Social assistance |
| Investment income |
Death benefits |
| Rental income |
Lottery winnings |
| Capital gains (50%) |
Principal residence sale |
| OAS itself |
|
Strategies to Reduce OAS Clawback
1. TFSA Over RRSP
| Strategy |
Impact |
| Withdraw from TFSA |
Not counted as income |
| Withdraw from RRSP |
Fully taxable, triggers clawback |
| Savings: $100K TFSA vs RRSP |
~$1,500/year in OAS |
2. Pension Income Splitting
| Scenario |
Before Split |
After Split |
| Spouse 1 income |
$140,000 |
$105,000 |
| Spouse 2 income |
$70,000 |
$105,000 |
| Total clawback |
$7,350 |
$4,200 |
| Savings |
|
$3,150/year |
3. Delay OAS to 70
| Age Started |
Monthly Increase |
Break-Even |
| 65 |
0% |
— |
| 66 |
+7.2% |
|
| 67 |
+14.4% |
|
| 68 |
+21.6% |
|
| 69 |
+28.8% |
|
| 70 |
+36% |
~82 years old |
Higher OAS at 70 means higher threshold before full clawback.
4. RRSP Meltdown Strategy
Withdraw more RRSP in early retirement (before OAS starts) to reduce RRIF minimums later.
| Age |
Strategy |
| 60-64 |
Larger RRSP withdrawals |
| 65+ |
Smaller RRIF = less clawback |
5. Corporate Retained Earnings
For business owners:
| Approach |
Impact |
| Pay yourself salary |
Triggers clawback |
| Retain in corporation |
Not personal income |
| Pay dividends strategically |
Control timing |
OAS Clawback vs Marginal Tax Rate
The clawback acts like a 15% surtax:
| Income Range |
Marginal Tax |
+ Clawback |
Effective Rate |
| $90,997 - $100,000 |
~30% |
+15% |
~45% |
| $100,000 - $148,476 |
~35% |
+15% |
~50% |
Timing Considerations
| Factor |
Recommendation |
| One-time income spike |
May be unavoidable |
| Planning RRSP conversion |
Do before 65 if possible |
| Severance package |
Defer if near retirement |
| Capital gains |
Spread over multiple years |
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