What is the OAS clawback?
The OAS clawback — officially the Old Age Security pension recovery tax — means the government takes back part or all of your OAS pension once your net world income passes an annual threshold. You repay 15 cents for every dollar above the threshold, and it's collected as a monthly deduction from your OAS payments over the following year.
The 2026 OAS clawback thresholds
The threshold is indexed each year. Your OAS is fully recovered once income reaches the maximum — and that ceiling is higher if you're 75 or older, because your OAS pension is 10% larger.
| Income year | Clawback starts | Fully clawed back (65–74) | Fully clawed back (75+) |
|---|---|---|---|
| 2024 | $90,997 | $148,451 | $154,196 |
| 2025 | $93,454 | $152,062 | $157,923 |
| 2026* | $95,323 | $155,109 | $161,088 |
*2026 figures are CRA estimates until finalized. Source: Canada Revenue Agency, Old Age Security pension recovery tax.
How to reduce or avoid the OAS clawback
Because the clawback is driven by taxable income, much of it comes down to where your retirement income comes from and when you take it. Common, legitimate strategies include:
- Pension income splitting — shift up to half of eligible pension income to a lower-income spouse to keep both below the threshold.
- Draw from your TFSA — TFSA withdrawals aren't taxable income, so they don't count toward the clawback.
- Manage RRSP/RRIF timing — drawing down RRSPs earlier (an "RRSP meltdown") or smoothing RRIF withdrawals can avoid a spike that triggers the clawback.
- Time capital gains — realize gains in lower-income years rather than bunching them.
- Consider deferring OAS — delaying to as late as age 70 raises your benefit and can align income better.
- Cross-border coordination — for those with U.S. income, IRAs, or 401(k)s, how and where income is reported affects both the clawback and U.S. tax.
See a plan built around your numbers
A complimentary call with a dual-licensed cross-border advisor (CFP® in Canada & the U.S.) will show which of these moves actually fit your situation.
Book a complimentary call →Frequently asked questions
At what income does the OAS clawback start?
For 2025 income it begins at $93,454 (affecting July 2026–June 2027 payments); for 2026 income it's $95,323. Above that you repay 15% of the excess.
How much is the clawback?
15% of net world income above the threshold, capped at the total OAS you received. On $100,000 of 2025 income: 15% × ($100,000 − $93,454) = $981.90 for the year.
At what income is OAS fully clawed back?
For 2025 income, about $152,062 (ages 65–74) or $157,923 (75+). Beyond that, your entire OAS is recovered.
Does TFSA income count?
No — TFSA withdrawals are not taxable income and don't affect the clawback, which is why TFSA drawdowns are a common planning tool.
How can I avoid the clawback?
Pension income splitting, TFSA withdrawals, RRSP/RRIF timing, spreading capital gains, and deferring OAS can all help. The right combination depends on your full picture.
Educational information only — not tax or financial advice. This calculator uses published CRA thresholds and the 15% recovery-tax rate to estimate your OAS clawback; your actual repayment depends on your full return and can differ. 2026 figures are estimates until finalized. Confirm with the CRA or a qualified advisor before acting.