Canadian Guide · 2026
Old Age Security Canada 2026 —
Amounts, Clawback, and Deferral
Two simple numbers and one decision drive most of OAS: the maximum monthly amount ($743.05 at 65, $817.36 at 75+), the clawback threshold ($95,323 of net income before a 15% recovery tax kicks in), and whether to take it at 65 or defer for the 36% bonus at 70. The interaction with CPP, RRIF and TFSA is where the planning actually happens.
Published 2026-06-18 · Last reviewed 2026-06-18 · Reading time ~11 min
The 30-second answer
OAS is a universal residency-based pension available to Canadians from age 65 (40 years of Canadian residency for the full amount; 10 for partial). The April–June 2026 maximum is $743.05/month at 65–74 and $817.36/month at 75+ — indexed quarterly.
The clawback (officially the OAS Recovery Tax) starts at $95,323 of net world income for 2026, at a rate of 15% on every dollar over the threshold. Full clawback hits at $154,708 (65–74) or $160,647 (75+). TFSA withdrawals do not count toward this test; RRIF and pension withdrawals do.
You can defer OAS up to age 70 for a permanent 36% bonus (0.6%/month delayed). Break-even versus starting at 65 is roughly age 84. Deferral only helps if your retirement income will stay below the recovery-tax threshold — otherwise the bonus is clawed back.
What OAS is — and what it isn't
Old Age Security is one of three federal income-support programs for Canadian seniors. It is fundamentally different from the other two: OAS is residency-based, not contribution-based — you receive it because you lived in Canada, not because you paid into it through earnings. It's funded from general tax revenue and administered by Service Canada.
The Canada Pension Plan (CPP) is contribution-based: you receive it because you paid CPP contributions on your employment or self-employment earnings. The Guaranteed Income Supplement (GIS) is income-tested: only OAS recipients with low net income qualify. A retired Canadian commonly receives OAS + CPP; lower-income retirees also receive GIS.
The practical implication: a Canadian who immigrated late in life may have 25 years of residency (qualifying for a partial OAS) but few CPP contributions (low or no CPP). Conversely, a Canadian with a long career may have a large CPP but moved abroad and lost residency years (reduced OAS). The two programs are independent in the design as well as the math.
2026 OAS amounts and eligibility
Service Canada publishes new amounts every quarter. The figures below are for April–June 2026 (the current quarter at the time of writing) — verify the latest on canada.ca.
| Maximum OAS pension, age 65–74 (April–June 2026) | $743.05/month |
| Maximum OAS pension, age 75+ (April–June 2026) | $817.36/month (includes 10% top-up since July 2022) |
| Indexation cadence | Quarterly — January, April, July, October |
| Eligibility — minimum age | 65 |
| Eligibility — residency for partial pension | 10 years in Canada as an adult (after age 18) |
| Eligibility — residency for full pension | 40 years in Canada as an adult |
| Application required? | Auto-enrolment for most; if not auto-enrolled, apply 6 months before age 65 |
| Taxable? | Yes — OAS is taxable income; GIS is not |
| Maximum deferral | Up to age 70 — 0.6% per month delayed = +36% at 70 |
The 10% top-up at age 75+ was introduced in July 2022 as a permanent enhancement. The maximum CPP retirement pension at age 65 in 2026 is $1,507.65/month for reference.
The OAS clawback (Recovery Tax) for 2026
The OAS Recovery Tax — colloquially “the clawback” — reduces OAS for higher-income recipients. Roughly 7% of seniors are affected. The mechanics are entirely formula-driven.
| 2026 recovery-tax threshold | $95,323 of net world income |
| Recovery tax rate | 15% of every dollar over the threshold |
| Upper threshold (full clawback), age 65–74 | $154,708 of net world income |
| Upper threshold (full clawback), age 75+ | $160,647 of net world income |
| Indexation | Threshold is indexed annually to CPI |
| Excluded from clawback calculation | TFSA withdrawals (not income for OAS purposes) |
| Included in clawback calculation | Employment, CPP, RRIF, RRSP, pensions, dividends, interest, capital gains, GIS |
| Calculation source | Net income reported on line 23400 of the T1, minus eligible deductions |
Worked example. A 67-year-old retiree has $110,000 of net income (line 23400) including OAS, CPP, RRIF, and a small employer pension.
- • Income above threshold: $110,000 − $95,323 = $14,677
- • Recovery tax: 15% × $14,677 = $2,202 per year
- • Monthly reduction in OAS starting next July: ~$183
- • Remaining OAS: ~$560/month instead of $743
The clawback is applied to the OAS that would otherwise be received the year AFTER the income year — so 2026 income drives 2027 OAS reductions, deducted monthly from July 2027 onwards.
When to take OAS — the deferral decision
The biggest single OAS decision most Canadians make is when to start. Four options:
1.Take at 65 (the default)
The reference age for the maximum monthly OAS amount. Receive 100% of the maximum, every month, for life. The default choice for most Canadians — and the right choice when you need the income immediately, have shorter-than-average expected life, or already know you'll be near the OAS recovery-tax threshold (deferring won't help if it's clawed back anyway).
2.Defer to 70 (the 36% bonus)
For every month you defer past 65, OAS increases by 0.6%. The maximum deferral is to age 70 — a 36% permanent increase over the age-65 amount. For 2026, that's roughly $1,010/month at 70 (65–74 rate × 1.36) instead of $743/month at 65. Break-even versus starting at 65 is roughly age 84 — you come out ahead in cumulative dollars after that. Deferral is most valuable for Canadians with good health, a long expected lifespan, and other income sources to cover the 65–70 gap.
3.Take between 65 and 70
Partial deferral is available — start at 67 or 68, for instance, for an 18% or 25% permanent uplift. Useful when retirement timing isn't flexible but a year or two of delay is. The CRA tracks the elected start month and applies the proportional bonus permanently.
4.Take before 65
Not allowed for OAS. Unlike CPP, which can be started as early as 60 (with a penalty), OAS is not available before 65. The earliest possible start is the month after your 65th birthday.
How OAS interacts with other retirement income
Most Canadians' retirement income is some combination of OAS, CPP, employer pension, RRIF and TFSA. The interactions matter more than any single source.
OAS + CPP
Most Canadians receive both. Maximum CPP retirement pension at 65 for 2026 is $1,507.65/month. Combined with the maximum OAS, that's roughly $2251/month or $27,008/year — pre-tax. Both count as taxable income on the T1, and both count toward OAS recovery-tax income above the $95,323 threshold. Many Canadians receive less than the maximum because the maximum CPP requires roughly 39 years of maximum-contribution earnings.
OAS + employer pension or RRIF
Defined-benefit pensions and RRIF withdrawals are also taxable income and count for the recovery-tax threshold. A retired Canadian with $40,000 of pension + $20,000 of RRIF + maximum OAS + maximum CPP could easily exceed $95,323 of net income — triggering clawback on every OAS dollar received. Income-smoothing strategies (drawing RRIF more slowly, layering TFSA withdrawals which don't count as income) reduce the clawback exposure.
OAS + GIS
Guaranteed Income Supplement is income-tested and only available to OAS recipients with low net income. The 2026 maximum GIS for a single, widowed, or divorced senior is $1109.85/month, available when prior-year net income (excluding OAS) is below approximately $22,512. GIS is NON-taxable. As income rises, GIS reduces dollar-for-dollar (50¢ per $1 for the first portion, then 75¢) — much faster than the OAS clawback. RRSP/RRIF withdrawals reduce GIS dramatically; TFSA withdrawals do not.
OAS + TFSA
The TFSA's biggest retirement advantage is OAS-neutrality. Every dollar of TFSA withdrawal generates zero income for the recovery-tax test and zero income for GIS clawback. A retiree drawing $50,000/year split as $30,000 RRIF + $20,000 TFSA stays under the recovery-tax threshold and keeps full OAS; the same $50,000 drawn entirely from RRIF triggers clawback. See our /ca/guides/rrsp-vs-tfsa-canada guide for the worked withdrawal sequence.
Common OAS mistakes
Five mistakes that cost real money or trigger administrative headaches — each is preventable.
1.Assuming OAS is automatic
Most Canadians are auto-enrolled, but not all. Service Canada sends a notification letter at age 64 confirming auto-enrolment. If you don't receive that letter, you must apply 6 months before your 65th birthday or risk delayed payments. Application is via Service Canada online or paper Form ISP-3000.
2.Forgetting OAS counts for the recovery-tax test of OAS itself
The OAS clawback is calculated on net world income, which INCLUDES the OAS amount received. A retiree with $90,000 of other income plus full OAS ($8,917/year) has $98,917 of total net income — over the $95,323 threshold by $3,594, triggering $539/year of recovery tax. The clawback formula is recursive in this small sense.
3.Not applying for GIS when eligible
GIS requires a separate application in some cases. Auto-enrolment happens for most low-income OAS recipients, but not all. The CRA recommends checking GIS eligibility every year if income changes — major asset sales (e.g., downsizing the family home) can push net income above the GIS threshold temporarily.
4.Deferring OAS when you'll be clawed back anyway
The deferral bonus is wasted if your income at 70 will be high enough to trigger full OAS clawback. A self-employed Canadian with $200,000 of dividend income from a holding company will lose every OAS dollar at 70 the same as they would at 65 — the 36% bonus is multiplied by zero. Deferral is most valuable for middle-income retirees, not high.
5.Misreporting non-residency
OAS is payable to Canadians living abroad if they accumulated at least 20 years of Canadian residency as an adult. The first 10 years still qualify only for partial residency-based amounts. Non-residents may also be subject to the OAS Return of Income (OASRI) and a different withholding tax depending on tax treaty with their country of residence. Service Canada is the authoritative source for non-resident OAS rules.
Run the numbers
Free Canadian calculators — no signup, no email — for the OAS-adjacent decisions in this guide.
- Retirement planning — Canada — OAS + CPP + RRSP + TFSA + FHSA together, with worked retirement-income scenarios.
- RRSP vs TFSA calculator — Models the bracket-arbitrage including OAS-clawback exposure on RRIF withdrawals in retirement.
- Average RRSP balance by age — Canada — StatCan SFS mean and median by age, with 2026 CRA contribution rules.
- Average TFSA balance by age — Canada — CRA 2023 data and cumulative-room calculator for the OAS-immune retirement bucket.
OAS questions Canadians ask
What is the maximum OAS payment in 2026?+
For the April–June 2026 quarter, the maximum monthly Old Age Security pension is $743.05 for seniors aged 65–74 and $817.36 for seniors aged 75 and over. The age-75 amount includes the 10% top-up introduced in July 2022. OAS is indexed quarterly to the Consumer Price Index, so amounts adjust every January, April, July and October. The most recent quarterly amount is published on canada.ca by Employment and Social Development Canada.
What is the OAS clawback threshold for 2026?+
The 2026 OAS recovery-tax threshold is $95,323 of net world income. Above this threshold, you repay 15% of every dollar over the threshold. Full clawback happens at $154,708 for seniors aged 65–74 and $160,647 for seniors 75 and over. The threshold is indexed annually to CPI. TFSA withdrawals do not count toward this income test; RRIF and pension withdrawals do.
How does the OAS recovery tax actually work?+
The recovery tax is calculated on your line 23400 net income (before adjustments). Subtract the threshold ($95,323 for 2026), multiply the excess by 15%, and that's your annual repayment. The repayment cannot exceed the OAS pension actually received. The tax is paid through monthly OAS reductions starting the following July (after your tax return is filed) and a Notice of Assessment is issued. Example: $110,000 net income exceeds the threshold by $14,677; recovery tax is 15% × $14,677 = $2,202 per year, or about $183 per month deducted from OAS.
Should I defer OAS to age 70?+
For every month you defer OAS past 65, the monthly amount increases by 0.6% — up to a maximum 36% permanent bonus at age 70. The break-even point versus starting at 65 is roughly age 84: cumulative dollars are higher with deferral after that age. Deferral makes sense if (a) you have good health and a long expected lifespan, (b) you have other income to bridge ages 65–70, and (c) your retirement income will stay below the OAS recovery-tax threshold — otherwise the 36% bonus is multiplied by a clawback. Deferral does NOT increase the GIS amount.
What's the difference between OAS, CPP, and GIS?+
OAS is a universal residency-based pension funded from general tax revenue — eligibility is based on years lived in Canada after 18. CPP is a contribution-based pension funded by employee and employer contributions — eligibility is based on lifetime contributions from earnings. GIS (Guaranteed Income Supplement) is an income-tested top-up for low-income OAS recipients and is NON-taxable. A typical retired Canadian receives OAS + CPP; only lower-income retirees also receive GIS. The maximum CPP retirement pension at age 65 in 2026 is $1,507.65/month, far higher than OAS.
Are TFSA withdrawals counted for the OAS clawback?+
No. TFSA withdrawals are not income for any federal income-tested benefit — OAS, OAS recovery tax, GIS, or the Age Amount. This is one of the strongest mathematical reasons high-balance retirees prioritise TFSA drawdowns: a $30,000 TFSA withdrawal does not affect OAS at all, while the same $30,000 from a RRIF would push net income up by $30,000 and potentially trigger or increase the recovery tax. RRSP and RRIF withdrawals always count.
Can I get OAS if I live outside Canada?+
Yes, if you accumulated at least 20 years of Canadian residency as an adult. With less than 20 years, OAS payments stop the seventh month after you leave Canada. Some Canada/foreign social-security agreements allow time in the other country to count toward the 20-year minimum. Non-residents must file an OAS Return of Income (OASRI) and may face different withholding tax rates depending on the tax treaty with their country of residence. Service Canada is the authoritative source for non-resident eligibility.
What happens to OAS at age 75?+
Starting the month after your 75th birthday, the maximum OAS amount increases by 10% — the result of a permanent enhancement introduced in July 2022. For April–June 2026 that pushes the maximum from $743.05/month to $817.36/month. The recovery-tax threshold is the same for all OAS recipients, but the upper threshold (full clawback) is higher for the 75+ group ($160,647 vs $154,708) to account for the higher pension.
Is OAS automatic, or do I have to apply?+
Most Canadians are auto-enrolled in OAS — Service Canada sends a notification letter at age 64 confirming auto-enrolment. If you receive the letter, you don't need to do anything; payments start the month after your 65th birthday. If you do NOT receive the letter, apply 6 months before your 65th birthday via your My Service Canada Account or paper Form ISP-3000. Late applications can be backdated up to 11 months, but no further.
Related Canadian guides
RRSP vs TFSA Canada 2026
The bracket-arbitrage decision framework, with OAS-clawback edge cases.
Maximizing TFSA growth
Why the OAS-immune TFSA is the most valuable retirement-income bucket for high balances.
CRA TFSA audit rules
When the CRA can re-characterise TFSA profits as taxable.
FHSA Canada explained
First Home Savings Account rules and the FHSA+HBP+TFSA stack.
