GIS in 2026: Eligibility, Income Test & the 50% Clawback

The Guaranteed Income Supplement (GIS) is a monthly, non-taxable benefit for low-income Canadians who already receive Old Age Security (OAS). It is one of the most generous — and most aggressively income-tested — federal benefits. Here is how it works in 2026.

What Is the GIS?

GIS tops up the income of OAS pensioners who have little other income. Unlike OAS, GIS is not taxable and is not paid automatically to everyone — it is fully income-tested and disappears entirely above modest income levels.

You must already qualify for OAS to receive GIS. The two are paid together but governed by different rules.

Eligibility

To receive GIS in 2026 you must:

• Be 65 or older and receiving the OAS pension
• Be a resident of Canada
• Have annual income below the GIS threshold for your marital situation

Your income for GIS purposes is your (and your spouse’s) income from the previous year, recalculated each July. Filing your tax return on time is essential — GIS can be suspended if the CRA has no income information.

2026 Maximum Amounts

For the January to March 2026 quarter, the maximum GIS for a single, widowed, or divorced person is up to $1,109.85 per month. Amounts for those with a spouse or common-law partner depend on whether the partner also receives OAS or the Allowance, and are lower per person.

GIS amounts are reviewed quarterly and adjusted for inflation, so the figure rises through the year if the Consumer Price Index increases.

The Income Test and Exemptions

GIS is reduced as your income rises, but not all income counts the same way. The income test excludes:

• Your OAS pension itself
• The first $5,000 of employment or self-employment income
• 50% of employment or self-employment income between $5,000 and $15,000

This earnings exemption — up to $5,000 fully exempt plus half of the next $10,000 — lets GIS recipients work part-time without losing the full benefit dollar-for-dollar.

What counts as income for GIS:

• CPP/QPP pension
• Employer pensions and RRSP/RRIF withdrawals
• Investment income (interest, dividends, taxable capital gains)
• Net rental and net self-employment income (after the earnings exemption)

The 50% Clawback

Above the income exemptions, GIS is reduced by 50 cents for every dollar of additional countable income — a 50% clawback rate. This is far steeper than the 15% OAS recovery tax that applies to higher earners.

Worked example — single GIS recipient:

Maria, 68, receives OAS and GIS. She has $6,000 of CPP income and $4,000 of RRIF withdrawals — $10,000 of countable income (her OAS does not count).

Her GIS is reduced by roughly $10,000 × 50% = $5,000 per year, or about $417/month, from the single maximum.

The practical effect: every extra dollar of pension or RRIF income only nets a GIS recipient about 50 cents, because half is clawed back. For very low-income seniors this is one of the highest effective marginal rates in the Canadian system.

How GIS Interacts With OAS

The two benefits work together but behave very differently:

Feature	OAS	GIS
Taxable?	Yes	No
Income-tested?	Only via clawback above ~$95,000	Yes — phases out by ~$22,000 income
Clawback rate	15% (recovery tax)	50%
Automatic?	Largely automatic at 65	Must qualify on income

Because GIS phases out so quickly, most planning for GIS-eligible seniors focuses on keeping countable income low in the years GIS is claimed. See OAS and GIS: Tax Implications for Canadian Seniors for the OAS side of the picture.

Planning Tips for GIS Recipients

1. Draw down RRSPs before 65. RRSP/RRIF withdrawals count as income and trigger the 50% clawback. Melting down an RRSP in your early 60s — before GIS begins — can preserve GIS later. See RRSP Meltdown Strategy Before 71.
2. Use the TFSA. TFSA withdrawals are not counted in the GIS income test, making the TFSA the ideal account for GIS-eligible retirees.
3. Take advantage of the earnings exemption. Part-time work up to $5,000 is fully exempt; the next $10,000 is half-exempt.
4. File your taxes on time every year to avoid a GIS interruption.
5. Consider the timing of capital gains — a one-time large gain can wipe out a year of GIS.

Key Takeaways

• GIS is non-taxable and only for low-income OAS pensioners.
• The 2026 single maximum is up to $1,109.85/month (Q1), indexed quarterly.
• The income test exempts OAS plus up to $15,000 of earned income (partly), then claws back at 50%.
• TFSA withdrawals do not count — RRSP/RRIF withdrawals do.

Estimate your combined OAS and GIS entitlement with the OAS & GIS calculator.

Sources

• Service Canada — GIS: How much you could receive
• Service Canada — GIS eligibility
• Maximum Benefit Amounts — CPP 2026 and OAS (January to March 2026)