OAS clawback calculator
The recovery tax on Old Age Security is 15% of net income above a single threshold, but the ceiling where it finishes clawing back the pension differs by age band, and what gets withheld starting in July is a separate estimate from what you actually owe.
Worked example — OAS clawback at $95,000 net income, ages 65 to 74: $232. 15% of $1,546 over the $93,454 threshold, July 2026 to June 2027, on 2025 net world income
Price your own OAS clawback
Enter your net income for the year and your age band. The advanced fields cover the two things a flat 15% calculation leaves out: what actually gets withheld starting in July, which is estimated from last year's income rather than this year's, and the cap that applies if your own OAS is a partial pension rather than the full 40-year amount.
$95,000 at 68: Partial clawback: $95,000 of net income sits just above the $93,454 threshold, at a 65-74 pension.
Withholding and partial pensions 2
Both curves rise at 15% of net income above $93,454 and flatten at each band's own ceiling. The 75-plus curve flattens higher because that band's pension is larger, not because the rate differs.
Net income here means the recovery-tax test's own definition: OAS itself, CPP, RRIF and RRSP withdrawals, employment and investment income. TFSA withdrawals and GIS are excluded. This assumes a full 40-year residence pension unless you set a lower actual OAS received above.
How much OAS clawback will I pay at $95,000?
$232 a year, or $19 a month, for a 65-to-74 pensioner with $95,000 of net income in the July 2026 to June 2027, on 2025 net world income recovery period. The recovery tax is 15% of the amount by which net income exceeds the $93,454 threshold, so at $95,000 that is 15% of $1,546. Net income for this test includes OAS itself, CPP, RRIF and RRSP withdrawals, employment and investment income; TFSA withdrawals and GIS are not counted.
OAS clawback threshold and repayment by net income, 2026
Both age bands start being clawed back at the same $93,454 threshold. They stop at different incomes, because the 75-plus pension is larger and 15% takes longer to consume it.
| Net income | 65 to 74 repayment | 75 and older repayment |
|---|---|---|
| $85,000 | $0 | $0 |
| $90,000 | $0 | $0 |
| $95,000 | $232 | $232 |
| $100,000 | $982 | $982 |
| $110,000 | $2,482 | $2,482 |
| $120,000 | $3,982 | $3,982 |
| $130,000 | $5,482 | $5,482 |
| $140,000 | $6,982 | $6,982 |
| $150,000 | $8,482 | $8,482 |
| $155,000 | $8,791 | $9,232 |
| $160,000 | $8,791 | $9,670 |
| $165,000 | $8,791 | $9,670 |
OAS clawback: the 65-74 ceiling vs the 75-plus ceiling
The entry point is identical for both bands: clawback starts at $93,454 of net income either way. Where they differ is the income at which OAS is gone entirely.
| Age band | Full pension repaid at | Repayment at that income |
|---|---|---|
| 65 to 74 | $152,062 | $8,791 |
| 75 and older | $157,923 | $9,670 |
The gap exists because the maximum monthly OAS is $827 for the 75-plus band against $752 for 65 to 74, the permanent 10% top-up in force since July 2022. A larger pension takes a higher income to fully recover at the same 15% rate. Neither ceiling is derived from the other: they are published separately and indexed on their own cycle.
Why the amount withheld from July differs from what you repay on your return
Because they are assessed on different years' income. Service Canada estimates the July-to-June benefit year's repayment from your net income on last year's tax return and deducts that estimate monthly from your payment starting in July. Your actual repayment is then trued up when you file, using this year's own net income, which is very often a different number.
Income rising from $80,000 to $120,000 withholds $0 across the year, since last year was under the threshold, but the return assesses $3,982 on this year's actual income, leaving a $3,982 balance due when you file. Income falling from $150,000 to $90,000 runs the other way: $8,482 gets withheld across the year on last year's higher income, this year owes $0, and the difference, $8,482, comes back as a refund.
Where these numbers come from
The $93,454 threshold and the two age-band ceilings are published by Service Canada for the July 2026 to June 2027, on 2025 net world income recovery period, cross-checked against an independent source on 2026-08-08. The 15% rate itself is statutory, under the Old Age Security Act and ITA s.180.2, and does not change with indexation. Your own repayment, on your notice of assessment, is the number that governs; this does not model a partial-residence pension unless you set your actual OAS received in the calculator's advanced fields.
- ESDC - Old Age Security payment amounts, July to September 2026 maximum monthly OAS for the 65-74 and 75+ bands, and the quarterly indexation
- Service Canada - Old Age Security recovery tax the 15% recovery tax, and the minimum and maximum income thresholds by period
The next question after this one
GIS eligibility calculatorCalculatorIncome low enough to avoid the clawback is often low enough to qualify for GIS too. This is the same net-income question on the other side of the line.Open nextOther questions
- RRSP withdrawal withholding tax calculatorCalculatorA large RRSP or RRIF withdrawal is the income spike that triggers this clawback most often. This shows what a bank withholds at source on that withdrawal, separately from what it costs here.
- Canadian capital gains tax calculatorCalculatorA capital gain counts as net income for this test too. Price the tax on the gain itself before it stacks on top of your pension income.
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