CA Tax Tools

Canadian Retirement Income Calculator

Combine CPP, OAS, RRSP/RRIF, and TFSA withdrawals to see your monthly take-home pay in retirement — with accurate provincial tax and OAS clawback calculations.

Your Retirement Details

Find your CPP and OAS benefit amounts in your My Service Canada Account statement.

Income Breakdown

CPP($1,000/mo)
$12,000/yr
OAS($742/mo)
$8,904/yr
RRSP/RRIF Withdrawal$20,000/yr
TFSA Withdrawaltax-free
$10,000/yr
Total Gross Income$50,904/yr
Taxable Income (excl. TFSA)$40,904/yr

Tax on Retirement Income

Federal Income Tax$3,423
Provincial Income Tax (ON)$1,410
Total Tax + OAS Clawback$4,833

Effective Tax Rate

12.0%

Taxable Income

$40,904

Net Retirement Income

Monthly Take-Home

$3,839

$46,071 per year after tax

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How it works: CPP and OAS are taxable income. RRSP/RRIF withdrawals are fully taxable. TFSA withdrawals are tax-free and excluded from your taxable income. The OAS Recovery Tax (clawback) applies at 15 cents per dollar above $95,000 (2026). This calculator uses annual averages — your actual OAS benefit is indexed quarterly by CRA.

Canadian Retirement Income Sources

Canada Pension Plan (CPP): A contributory pension paid monthly based on your work history. The maximum 2026 rate is approximately $1,433/month. You can start as early as age 60 (reduced by 0.6%/month) or delay to age 70 (increased by 0.7%/month). CPP is fully taxable.

Old Age Security (OAS): A universal pension available at 65 regardless of work history. You can defer to age 70 for a 0.6% monthly bonus. OAS is taxable and subject to a 15% Recovery Tax if your net income exceeds the threshold (~$95,000 in 2026).

RRSP/RRIF Withdrawals: After converting your RRSP to a RRIF at age 71, you must make minimum annual withdrawals. All RRIF income is fully taxable. Withholding tax applies at source.

TFSA Withdrawals: Completely tax-free. TFSA income does not affect your OAS threshold, GIS eligibility, or any income-tested benefit. Withdrawn amounts are re-added to your room the following year.

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