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 (Q3 2026 (Jul–Sep 2026)) | Full-clawback income (est.) |
|---|---|---|
| 65 to 74 | $751.97 | $155,109 |
| 75 and over | $827.17 | $161,088 |
Both ceilings are Service Canada's own 2026-income-year estimates: from January to September they're projected from maximum OAS amounts, and become final once the October payment amount is set. They will move slightly once Q4 2026 indexation is confirmed.
How repayment is collected — and why two thresholds are both "current"
The recovery tax runs a year behind the calendar. Service Canada assesses your income for a given year, then collects the repayment as a monthly reduction spread across the following July-to-June period — not the year the income was earned.
| Repayment period | Assessed 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 Q3 2026 (Jul–Sep 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.
OAS clawback by net income (2026, ages 65-74)
Computed from the same engine as the calculator, using the Q3 2026 (Jul–Sep 2026) OAS amount.
| Net income | Clawback | OAS kept | % kept |
|---|---|---|---|
| $85,000 | $0 | $8,968 | 100% |
| $90,000 | $0 | $8,968 | 100% |
| $95,000 | $0 | $8,968 | 100% |
| $100,000 | $702 | $8,266 | 92% |
| $105,000 | $1,452 | $7,516 | 84% |
| $110,000 | $2,202 | $6,766 | 75% |
| $115,000 | $2,952 | $6,016 | 67% |
| $120,000 | $3,702 | $5,266 | 59% |
| $125,000 | $4,452 | $4,516 | 50% |
| $130,000 | $5,202 | $3,766 | 42% |
| $135,000 | $5,952 | $3,016 | 34% |
| $140,000 | $6,702 | $2,266 | 25% |
| $145,000 | $7,452 | $1,516 | 17% |
| $150,000 | $8,202 | $766 | 9% |
| $155,000 | $8,952 | $16 | 0% |
| $160,000 | $8,968 | $0 | 0% |
| $165,000 | $8,968 | $0 | 0% |
| $170,000 | $8,968 | $0 | 0% |
Worked example
A 68-year-old has $135,000 of net income in 2026 and would otherwise receive the full $8,968 of OAS for the year (Q3 2026 (Jul–Sep 2026) rate, ages 65-74).
($135,000 − $95,323) × 15% = $5,952 recovery tax
They keep $3,016 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 $155,109 of net income for ages 65 to 74, or $161,088 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 still Service Canada estimates as of this page's last update — they firm up once Q4 2026 OAS payment amounts are finalized.
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 currently being deducted from OAS cheques for the July 2026-June 2027 payment period, because that period's recovery tax is assessed on your 2025 net income. $95,323 is the threshold for 2026 net income itself, which won't actually reduce a payment until the July 2027-June 2028 period. 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 ($827/month for Q3 2026 (Jul–Sep 2026) vs $752/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?
As a monthly reduction to your OAS payment, not a bill at tax time. Service Canada estimates your repayment for the upcoming July-to-June period from your most recently assessed tax return and withholds it in equal monthly instalments; any gap between the estimate and your actual return is reconciled after you file. You never write a separate cheque for it.
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.