CA Tax Tools

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

Annual OAS Benefit$8,904
OAS Recovery Tax (Clawback)$702
Net OAS You Keep$8,202

OAS Retained

92.1%

Above Threshold

$4,677

Net OAS Monthly

$684

Key Thresholds (2026)

Clawback Starts

$95,323

OAS Fully Clawed Back

$154,683

Your Income

$100,000

$4,677 above threshold

OAS Clawback by Income Level

Net IncomeClawbackNet OASRetained
$85,000$0.00$8,904100%
$90,000$0.00$8,904100%
$95,000$0.00$8,904100%
$100,000← you−$702$8,20292%
$105,000−$1,452$7,45284%
$110,000−$2,202$6,70275%
$115,000−$2,952$5,95267%
$120,000−$3,702$5,20258%
$125,000−$4,452$4,45250%
$130,000−$5,202$3,70242%
$135,000−$5,952$2,95233%
$140,000−$6,702$2,20225%
$145,000−$7,452$1,45216%
$150,000−$8,202$7028%
$155,000−$8,904$00%
$160,000−$8,904$00%
$165,000−$8,904$00%
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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 $154,683. 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.

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Last updated April 19, 2026Tax year 2026

Data sources: CRA (canada.ca)

This tool is general information only, not financial advice.

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