OAS Clawback Calculator Canada

For higher-income retirees, Old Age Security comes with the recovery tax, widely known as the OAS clawback: once income passes a certain level, part or all of the pension is taken back. This calculator estimates how much the recovery tax will claim and how much you keep.

How the OAS clawback works

• With net income at or below the threshold, there is no clawback and you keep your full OAS.
• Above the threshold, you repay 15 cents of OAS for every dollar over the line.

The clawback is capped at the OAS you received for the year, so it can take your pension to zero but no further.

The income threshold

For 2026 the threshold is $95,323, so a retiree living on a modest mix of CPP, OAS and some savings income is usually well below it. Only the income above the threshold counts: someone with $100,000 of net income is $4,677 over the line, and the clawback applies to that excess alone, which is why it rises gradually.

A worked example

A retiree aged 67 has net income of $100,000.

• Income above the threshold: $100,000 − $95,323 = $4,677.
• Recovery tax: 15% of $4,677, about $702 for the year.
• Annual OAS at the current 65 to 74 rate is $9,150, so after the clawback they keep about $8,448, or about $704 a month.

Here the clawback takes under 8% of the pension. At $120,000 of net income the excess is $24,677 and the recovery tax about $3,702, leaving about $5,448. A $20,000 rise in income multiplied the clawback more than five times, because every extra dollar over the threshold is clawed back at the same 15%.

When the clawback removes all of your OAS

At some income the clawback equals the whole annual pension. With the current $9,150 a year it does so at about $156,300 of net income. Service Canada’s published 2026 ceilings, based on the year’s actual payments, are $155,320 for ages 65 to 74 and $161,320 for 75 and over, higher for the older band because its pension is larger. The calculator caps the recovery at your annual OAS, so the net figure never goes below zero.

How the recovery tax is collected

The recovery tax on a year’s income is reconciled on that year’s tax return. Based on the return, your OAS payments over the following July to June are reduced, spreading the expected clawback across the monthly payments as a kind of instalment.

So a high-income year can reduce your OAS payments many months later, and a return to lower income restores them. If your income drops sharply after a one-off spike, form T1213(OAS) lets you ask for the withholding to be reduced rather than waiting for the next return.

Strategies to reduce the clawback

• Pension income splitting with a lower-income spouse can bring one or both partners below the threshold.
• TFSA withdrawals do not count as income for the recovery tax.
• Spreading RRSP and RRIF withdrawals across years, rather than taking a large amount in one, keeps you under the line more consistently.
• Deferring OAS to a later start raises the pension and changes the income picture.

These depend on your situation, so discuss them with a qualified adviser. The calculator shows the size of the problem before you decide which to use.

Using your estimate

Enter your net income and age to see the recovery tax and the OAS you keep. Try a few income levels to find where the clawback starts for you and how close you are to losing the pension. The base OAS calculator gives the gross pension for comparison.

The threshold changes every year, and your net income for tax purposes may differ from a quick estimate, so confirm the figures with the Canada Revenue Agency or a qualified adviser before relying on them.

This article is general information only and not financial advice; confirm figures with official sources or a qualified professional.

About This OAS Clawback Calculator

Use this OAS clawback calculator to get an instant, accurate estimate. The figures follow official guidance and every rate and threshold is kept up to date for 2026. Adjust the inputs above to match your situation, or browse all our calculators to plan your next step.