OAS Clawback Calculator

How the OAS clawback works

The clawback's official name is the OAS pension recovery tax. Once your net world income passes the annual threshold, the government recovers 15 cents of your OAS for every dollar above it, up to your entire pension. For the 2026 income year the threshold is $95,323.

The formula is short: (income − $95,323) × 15%, capped at your total annual OAS. At $110,000 of income that is $14,677 over the line times 15%, or $2,201.55 a year, taken as a slightly smaller OAS deposit each month.

There is a one-year lag built in. Your 2026 income determines the recovery tax applied from July 2027 through June 2028, not your 2026 payments. That is why a single high-income year, from a property sale or a large RRIF withdrawal, trims twelve months of OAS and then stops on its own.

Recovery thresholds by year

The 2026 upper thresholds are computed from the published maximum OAS amounts: the threshold plus the annual maximum divided by 15%. Figures come from the Government of Canada's OAS recovery tax and quarterly benefit tables.

What income counts (and the TFSA exception)

The CRA tests line 23400, your net world income. Almost everything lands in it: CPP and QPP, RRIF withdrawals both mandatory and voluntary, the OAS pension itself, employment and self-employment income, rental income, interest, grossed-up dividends, and the taxable half of capital gains. Foreign pensions count as well.

The big exception is the TFSA. Withdrawals from a TFSA are not income, never touch line 23400, and cannot push you over the threshold no matter how large they are. That makes the TFSA the most practical clawback tool most retirees own: funding a year of spending from the TFSA instead of the RRIF can be the difference between keeping the full OAS and losing thousands. If your TFSA still has room, the TFSA calculator shows what it grows to, and how the TFSA works covers the rules.

The 15% stacking problem

The clawback does not replace your income tax, it stacks on top of it. Inside the clawback band, every extra dollar of income costs your marginal tax rate plus another 15 cents of OAS. In many provinces that pushes the effective marginal rate on income inside the band above 50%, which is why retirees near the line plan withdrawals carefully. For sequencing registered versus non-registered withdrawals, see the withdrawal order guide, and for the bigger retirement picture, investing in retirement with XEQT.

Common questions

What is the OAS clawback threshold for 2026?

$95,323 of net world income. If your 2026 income is above that line, the recovery tax takes 15 cents of OAS for every dollar over, applied to your payments from July 2027 through June 2028. Below the line, you keep every dollar of your OAS.

How is the OAS clawback calculated?

Subtract the $95,323 threshold from your net income, multiply the excess by 15%, and cap the result at your total annual OAS. At $110,000 of income, that is $14,677 over the line times 15%, or $2,201.55 a year. The calculator above runs the same math instantly.

What income counts toward the OAS clawback?

Almost everything on line 23400 of your return: CPP and QPP, RRIF withdrawals, the OAS itself, employment income, rental income, interest, grossed-up dividends, and the taxable half of capital gains. It is net world income, so foreign pensions count too.

Do TFSA withdrawals trigger the OAS clawback?

No. TFSA withdrawals are not income and never appear on line 23400, so they cannot push you over the threshold. This is the single most useful clawback planning tool most retirees have: funding spending from a TFSA instead of a RRIF keeps your measured income down.

How can I reduce or avoid the OAS clawback?

Split eligible pension income with a lower-income spouse, draw spending money from your TFSA rather than your RRIF, and time large capital gains for low-income years. Each tactic works the same way: by keeping line 23400 under the $95,323 threshold.

Is the OAS clawback per person or per couple?

Per person. Each spouse is tested on their own net income, which is why pension income splitting helps: moving up to half of eligible pension income to the lower-income spouse can pull one or both of you back under the threshold.

When does the clawback hit my payments?

With a one-year lag. Your 2026 income sets the recovery tax for July 2027 through June 2028, deducted a little from each monthly OAS deposit. A one-time income spike, like a big capital gain, costs you OAS for that twelve-month window only, then payments reset.

What if I only go over the threshold for one year?

Then you only lose OAS for one recovery year. The clawback is recalculated every July from the previous year's income, so a single high-income year from a property sale or a large RRIF withdrawal trims twelve months of OAS and then stops.