CA Tax Tools

OAS + GIS Retirement Income Calculator

Estimate your total Canadian retirement income in one place: OAS (net of recovery tax), GIS by marital category, CPP/QPP, the Allowance, and your other income sources. Rates current to April–June 2026.

Your Situation

First $5,000 fully exempt + next $10,000 at 50% (GIS rule).

GIS rates are effective Q2 2026 (Apr–Jun 2026), re-indexed quarterly to CPI.

Combined Retirement Income

Total annual (household)

$26,143

Total monthly

$2,179

GIS Eligibility

Categorysingle
Countable income (for GIS test)$9,600
GIS cutoff (income above zeroes GIS)$22,512
Maximum GIS monthly for your category$1,110
Your GIS monthly$637
Your GIS annual$7,639

OAS Clawback (Recovery Tax)

Net income (for clawback test)$18,504
OAS annual (gross)$8,904
No clawback$0.00
Net OAS (applicant)$8,904

Income Breakdown

SourceMonthlyAnnualTaxable?
OAS (net of clawback)$742$8,904Yes
CPP / QPP$800$9,600Yes
GIS$637$7,639Tax-free
Total household$2,179$26,143
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Key strategies

TFSA income doesn't count: TFSA withdrawals don't count for either OAS clawback or GIS means testing. Drawing from TFSA is the most tax-efficient source in retirement.

CPP is a GIS killer: Every dollar of CPP reduces GIS by ~$0.50 (single) or split across partners. If you have a small CPP and expect GIS, starting CPP late can be worse than starting early.

Employment exemption: The first $5,000 of employment or SE income is exempt from the GIS income test, plus 50% of the next $10,000. Part-time retirement work up to $15,000 only counts $5,000 toward GIS.

GIS is tax-free: GIS and the Allowance are not taxable and don't raise your marginal rate. OAS is taxable but CPP and RRIF are too — pension income splitting with a lower-income spouse can reduce both income tax and OAS clawback.

Apply for GIS: GIS is not automatic if you filed taxes but didn't receive OAS at the time — apply via Service Canada if you think you qualify. Retroactive payments go back up to 11 months.

Methodology: GIS is tapered linearly to the published Service Canada cutoff for each category — exact Service Canada amounts use two-tier rate tables internally but align at the endpoints. OAS recovery tax follows the standard 15% formula above the net-income threshold ($95,323 in 2026). Rates effective Q2 2026 (Apr–Jun 2026). This is an estimate — apply through Service Canada for your exact benefit.

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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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