OAS Clawback Calculator
Find out how much Old Age Security you actually keep. See how the Recovery Tax reduces your OAS at different income levels and learn strategies to minimize the clawback.
Your Details
Your OAS Clawback
OAS Retained
92.2%
Above Threshold
$4,677
Net OAS Monthly
$694
Key Thresholds (2026)
Clawback Starts
$95,323
OAS Fully Clawed Back
$155,481
Your Income
$100,000
$4,677 above threshold
OAS Clawback by Income Level
| Net Income | Clawback | Net OAS | Retained |
|---|---|---|---|
| $85,000 | $0.00 | $9,024 | 100% |
| $90,000 | $0.00 | $9,024 | 100% |
| $95,000 | $0.00 | $9,024 | 100% |
| $100,000← you | −$702 | $8,322 | 92% |
| $105,000 | −$1,452 | $7,572 | 84% |
| $110,000 | −$2,202 | $6,822 | 76% |
| $115,000 | −$2,952 | $6,072 | 67% |
| $120,000 | −$3,702 | $5,322 | 59% |
| $125,000 | −$4,452 | $4,572 | 51% |
| $130,000 | −$5,202 | $3,822 | 42% |
| $135,000 | −$5,952 | $3,072 | 34% |
| $140,000 | −$6,702 | $2,322 | 26% |
| $145,000 | −$7,452 | $1,572 | 17% |
| $150,000 | −$8,202 | $822 | 9% |
| $155,000 | −$8,952 | $72 | 1% |
| $160,000 | −$9,024 | $0 | 0% |
| $165,000 | −$9,024 | $0 | 0% |
| $170,000 | −$9,024 | $0 | 0% |
See your full retirement picture
Calculate total retirement income — CPP, OAS, RRIF & TFSA →How to Reduce OAS Clawback
Use TFSA withdrawals: TFSA income is completely tax-free and is not counted in your net income. Drawing from TFSA instead of RRIF keeps your net income lower and reduces or eliminates the clawback.
Defer OAS to age 70: If you have high employment income before retirement, deferring OAS avoids the clawback during your highest-income years — and increases your benefit by 36% (0.6%/month × 60 months).
Pension income splitting: If you have a spouse, you can split up to 50% of eligible pension income (RRIF, company pension). This shifts income to the lower-earning spouse and may bring both below the clawback threshold.
Time capital gains: The taxable portion of capital gains (50%) adds to net income. Realizing gains in lower-income years — or spreading dispositions across multiple years — helps stay below the threshold.
How it works: The OAS Recovery Tax (clawback) applies at 15 cents for every dollar of net income above $95,323 (2026). Your full OAS is clawed back at $155,481. Net income is line 23600 on your T1 return — it includes employment, pension, RRIF/RRSP withdrawals, rental income, and taxable capital gains, but excludes TFSA withdrawals.
OAS clawback by net income (2026, ages 65–74)
How much OAS you keep at different net income levels, based on the $9,024 annual OAS for ages 65–74 and the $95,323 recovery-tax threshold. Computed from the same engine as the calculator.
| Net income | Clawback | OAS kept | % kept |
|---|---|---|---|
| $95,323 | $0 | $9,024 | 100% |
| $110,000 | $2,202 | $6,822 | 76% |
| $130,000 | $5,202 | $3,822 | 42% |
| $150,000 | $8,202 | $822 | 9% |
| $155,481 | $9,024 | $0 | 0% |
Seniors aged 75+ receive ~10% more OAS, so their full-clawback income is higher. The recovery tax for July 2025–June 2026 payments is actually assessed on your prior-year (2024) net income against that year's threshold ($90,997); this table uses the 2026 income-year threshold to project the current year.
Worked example
A 68-year-old has $130,000 of net income in 2026 and receives the full $9,024 OAS for the year.
($130,000 − $95,323) × 15% = $5,202 recovery tax
They keep $3,822 of their OAS. Shifting income to TFSA withdrawals (which don't count as net income) or splitting pension income with a lower-earning spouse are the main ways to reduce the clawback.
Related retirement tools
Related Calculators
- Retirement Income Calculator — Full retirement income with tax
- CPP & OAS Start Age — When to start collecting
- TFSA Calculator — Tax-free savings (not counted in net income)
- Income Tax Calculator — Federal and provincial tax
Frequently asked questions
What is the OAS clawback?
The OAS Recovery Tax (commonly called the clawback) is a 15% tax on net income above a threshold — approximately $95,000 in 2026. For every dollar above the threshold, you repay 15 cents of OAS. If your income is high enough, your entire OAS benefit can be clawed back to zero.
At what income does OAS get fully clawed back?
In 2026, if your standard OAS monthly benefit is $752 (the Q3 2026 max for ages 65–74), your annual OAS is about $9,024. Full clawback occurs at approximately $155,481 net income ($95,323 threshold + $9,024 ÷ 15%). The exact amount depends on your individual OAS benefit and which quarter you're comparing.
Does TFSA income count toward the OAS clawback?
No. TFSA withdrawals are completely tax-free and do not count as net income on your tax return. This makes TFSA an effective tool for managing the OAS clawback — withdrawing from TFSA instead of RRIF keeps your net income lower.
Can I avoid the OAS clawback by deferring OAS?
Deferring OAS to age 70 avoids clawback during high-income working years and increases your benefit by 36%. However, once you start collecting, the clawback still applies if your income exceeds the threshold. Deferral is most effective if your income drops significantly in retirement.
Last updated July 2026. OAS recovery threshold ($95,323 for 2026) and Q3 2026 (Jul–Sep) payment amount ($751.97/mo, ages 65–74) verified against Service Canada.