OAS Clawback 2026
The 2026 OAS recovery tax (clawback) threshold is $95,323 of net income, with a 15% repayment rate on every dollar above it. This page covers the threshold, the full-clawback ceiling by age, how repayment is actually collected, and ways to reduce it.
Calculate your exact clawback
This page covers the threshold and mechanics. To see your personal clawback at your own income and OAS amount, use the calculator.
How the 15% recovery tax works
Once your net world income for the year passes $95,323, you repay 15% of every dollar above it — not 15% of your whole income, and not 15% of your OAS. The repayment is capped at the OAS you actually received for the year, so you can never repay more than you were paid.
"Net world income" includes employment income, pensions, RRSP/RRIF withdrawals, taxable capital gains, and foreign income — but not TFSA withdrawals, which don't appear on your tax return at all and so never count toward the threshold.
Full clawback ceiling, by age
OAS is fully recovered once net income reaches the threshold plus your full annual OAS divided by 15%. Because recipients 75 and over get a higher base pension, it takes more income to claw back their OAS entirely.
| Age | Max monthly OAS (Q4 2026 (Oct–Dec 2026)) | Full-clawback income (est.) |
|---|---|---|
| 65 to 74 | $762.50 | $155,320 |
| 75 and over | $838.75 | $161,320 |
Both ceilings are Service Canada's own 2026-income-year figures: from January to September they're projected from maximum OAS amounts, and they became final once the Q4 2026 (Oct–Dec 2026) payment amount was set.
How repayment is collected — and why two thresholds are both "current"
The recovery tax for a year is assessed on that year's net income, when you file that year's return. It is the monthly withholding that runs a year behind: Service Canada works it out from an earlier year's income and deducts it across the following July-to-June period. Your return squares the two — excess withholding is refunded, and a shortfall is paid with the return.
| Withholding period | Withholding based on | Threshold |
|---|---|---|
| July 2026-June 2027 (current) | 2025 net income | $93,454 |
| July 2027-June 2028 | 2026 net income | $95,323 |
So a deduction showing up on your OAS deposit right now, in Q4 2026 (Oct–Dec 2026), was set using your 2025 tax return and the $93,454 threshold. The $95,323 figure this page is built around is what will apply to your 2026 income once it's assessed next year — the number to use for planning what you earn this year, not for explaining a payment you're receiving today.
For which of these thresholds applies to payments in each half of 2027, and when CRA publishes the threshold for 2027 income, see OAS clawback 2027.
OAS clawback by net income (2026, ages 65-74)
Computed from the same engine as the calculator, using the Q4 2026 (Oct–Dec 2026) OAS amount.
| Net income | Clawback | OAS kept | % kept |
|---|---|---|---|
| $85,000 | $0 | $9,000 | 100% |
| $90,000 | $0 | $9,000 | 100% |
| $95,000 | $0 | $9,000 | 100% |
| $100,000 | $702 | $8,298 | 92% |
| $105,000 | $1,452 | $7,548 | 84% |
| $110,000 | $2,202 | $6,798 | 76% |
| $115,000 | $2,952 | $6,048 | 67% |
| $120,000 | $3,702 | $5,298 | 59% |
| $125,000 | $4,452 | $4,548 | 51% |
| $130,000 | $5,202 | $3,798 | 42% |
| $135,000 | $5,952 | $3,048 | 34% |
| $140,000 | $6,702 | $2,298 | 26% |
| $145,000 | $7,452 | $1,548 | 17% |
| $150,000 | $8,202 | $798 | 9% |
| $155,000 | $8,952 | $48 | 1% |
| $160,000 | $9,000 | $0 | 0% |
| $165,000 | $9,000 | $0 | 0% |
| $170,000 | $9,000 | $0 | 0% |
Worked example
A 68-year-old has $135,000 of net income in 2026 and would otherwise receive the full $9,000 of OAS for the year (Q4 2026 (Oct–Dec 2026) rate, ages 65-74).
($135,000 − $95,323) × 15% = $5,952 recovery tax
They keep $3,048 of their OAS for the year — about 34% of the maximum. Because this is based on 2026 income, the actual deduction from their payments won't take effect until the July 2027-June 2028 period.
Strategies to reduce the clawback
Split pension income
Move up to 50% of eligible pension income to a lower-earning spouse to bring your own net income under the threshold.
Draw down RRSPs before OAS starts
Melt down RRSP/RRIF balances in the years before you start OAS so mandatory withdrawals don't stack on top of it later.
Prioritize TFSA withdrawals
TFSA withdrawals never count as net income — model swapping a RRIF withdrawal for a TFSA one in the calculator.
Frequently asked questions
What is the OAS clawback threshold for 2026?
For net income earned in 2026, the OAS recovery tax (clawback) threshold is $95,323 — up from $93,454 for 2025 income. You repay 15% of every dollar of net world income above that threshold, up to the full amount of OAS you received.
At what income is OAS fully clawed back?
Using 2026 figures, OAS is fully recovered at roughly $155,320 of net income for ages 65 to 74, or $161,320 for ages 75 and over (who receive a higher base pension, so it takes more income to claw back in full). These two ceilings are final: Service Canada set them with the Q4 2026 (Oct–Dec 2026) OAS payment amounts.
Why do some sources quote $93,454 instead of $95,323 as the current threshold?
Both are correct, for different purposes. $93,454 is the threshold behind the recovery tax being withheld from OAS payments in the July 2026-June 2027 period, because that withholding is worked out from your 2025 net income. $95,323 is the threshold for 2026 net income itself: the recovery tax for 2026 is assessed on that income when you file your 2026 return, and the same income sets the withholding from July 2027-June 2028 payments. If you're estimating a clawback on this year's earnings for planning purposes, use $95,323; if you're trying to explain a deduction on a payment landing right now, it's $93,454.
Does the clawback apply differently at 65-74 vs 75+?
The 15% recovery rate and the $95,323 threshold are the same at every age. What differs is the OAS pension itself — recipients 75 and over get a permanently higher base amount ($839/month for Q4 2026 (Oct–Dec 2026) vs $763/month for 65-74), so it takes more net income to claw back the larger amount in full.
How is the OAS clawback actually collected?
Through withholding from your OAS payments, settled on your tax return. The recovery tax for a year is assessed on that year's net income. Service Canada withholds an amount from each monthly payment worked out from an earlier assessed return (for July-to-June payments, the previous year's), and your return squares that withholding against the tax you actually owe: any excess is refunded, and any shortfall, such as in the first year your income rises above the threshold, is payable with your return by the balance-due date.
Can I reduce or avoid the OAS clawback?
The main levers are lowering net income in the specific year that gets assessed: pension income splitting with a lower-earning spouse, prioritizing TFSA withdrawals over RRIF withdrawals (TFSA income is not counted), and timing RRSP/RRIF drawdowns before OAS starts. See the strategies section below for the calculators that model each option.