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
Tax on Retirement Income
Effective Tax Rate
12.0%
Taxable Income
$41,024
Net Retirement Income
Monthly Take-Home
$3,847
$46,168 per year after tax
Not sure when to start CPP or OAS?
Find your optimal start age with breakeven analysis →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 $95,323 (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 $1,507.65/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 ($95,323 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 Withdrawn amounts are re-added to your room the following year.
Key retirement income figures (2026)
| Item | Value |
|---|---|
| Max CPP at 65 | $1,507.65/mo |
| Max OAS 65–74 (Q3 2026) | $751.97/mo |
| Max OAS 75+ (Q3 2026) | $827.17/mo |
| OAS clawback threshold (2026 income year) | $95,323 |
| Clawback rate | 15% |
| CPP early/late adjustment | −0.6%/mo before 65 · +0.7%/mo after 65 |
| OAS deferral | +0.6%/mo after 65 (max +36%) |
| RRSP→RRIF deadline | Dec 31 of the year you turn 71 |
Worked example — Ontario retiree, 2026
An Ontario retiree receiving CPP at $900/mo, full OAS at $751.97/mo, $20,000/yr in RRIF withdrawals, and $6,000/yr in TFSA withdrawals (tax-free).
| Item | Amount |
|---|---|
| CPP | $900/mo |
| OAS | $751.97/mo |
| RRIF | $20,000/yr |
| TFSA | $6,000/yr (tax-free) |
| Taxable income | $39,824 |
| Total tax | $4,627 (effective 12.0%) |
| OAS clawback | $0 (below threshold) |
| Net income | $41,196/yr ≈ $3,433/mo |
By contrast, with max CPP, $80k RRIF and $10k other income (taxable $117,115), the 15% recovery tax claws back $3,269 of OAS.
Frequently asked questions
How much CPP will I receive?
The maximum CPP retirement pension at 65 in 2026 is $1,507.65/month ($18,091.80/year). Your actual amount depends on your contributions and working history. Check your personal estimate at My Service Canada Account (MSCA).
Is CPP income taxable in Canada?
Yes. CPP retirement benefits are fully taxable as income in the year you receive them. No tax is withheld at source by default — you can request CRA to withhold tax to avoid owing at filing.
What is the OAS clawback threshold?
The OAS Recovery Tax (clawback) applies if your net income exceeds $93,454 for the 2025 income year or $95,323 for 2026. You repay 15 cents of OAS for every dollar above the threshold, up to the full OAS amount.
Are TFSA withdrawals taxed in retirement?
No. Withdrawals from a TFSA are completely tax-free and do not count as income. This means TFSA income does not affect your OAS clawback threshold or any income-tested benefits.
Do I have to convert my RRSP to a RRIF?
Yes. Your RRSP must be converted to a RRIF (or annuity) by December 31 of the year you turn 71. After conversion, CRA requires minimum annual withdrawals based on your age and account balance.
How does the OAS clawback work in 2026?
You repay 15 cents of OAS for every dollar of net income above $95,323 (2026 income year), until OAS is fully repaid. TFSA withdrawals do not count toward net income and will not trigger or increase the clawback.
Related retirement tools
RRSP Calculator
Calculate RRSP contribution tax savings during your working years.
RRSP Withdrawal Calculator
See withholding tax and actual tax on a single RRSP withdrawal.
TFSA Calculator
Project your TFSA balance and track contribution room.
CPP & EI Calculator
Calculate CPP contributions and EI premiums during working years.
Related Calculators
- Income Tax Calculator — Federal and provincial tax for all provinces
- RRSP Withdrawal Tax Calculator — Withholding and actual tax on RRSP withdrawals
- Dividend Tax Calculator — Eligible and non-eligible dividend taxation
- Capital Gains Tax Calculator — 50% inclusion rate
Last updated July 2026. Reflects 2026 tax year rates and Q3 2026 (July–September) CPP/OAS maximums.