The OAS Recovery Tax (clawback) reduces your Old Age Security if your income is too high. For the broader rules around OAS eligibility, GIS, and deferral, start with the complete OAS guide.
2026 OAS Clawback Thresholds
Threshold
Amount
Clawback starts
$90,997
Full clawback (OAS = $0)
~$148,476
Recovery rate
15% of excess
Maximum OAS (age 65-74)
$727.67/month
Maximum OAS (age 75+)
$800.44/month
OAS Clawback by Income Level
Age 65-74 (Max OAS: $8,732/year)
Net Income
Excess Over Threshold
Clawback
OAS Remaining
$90,000
$0
$0
$8,732
$95,000
$4,003
$600
$8,132
$100,000
$9,003
$1,350
$7,382
$110,000
$19,003
$2,850
$5,882
$120,000
$29,003
$4,350
$4,382
$130,000
$39,003
$5,850
$2,882
$140,000
$49,003
$7,350
$1,382
$148,476+
$57,479+
$8,732+
$0
Age 75+ (Max OAS: $9,605/year)
Net Income
Clawback
OAS Remaining
$90,000
$0
$9,605
$100,000
$1,350
$8,255
$120,000
$4,350
$5,255
$140,000
$7,350
$2,255
$155,027+
$9,605+
$0
Monthly Impact
Annual Income
Monthly Clawback
Monthly OAS Received
$95,000
$50
$678
$100,000
$113
$615
$110,000
$238
$490
$120,000
$363
$365
$130,000
$488
$240
What Counts as Income?
Income sources that trigger clawback:
Included
Not Included
Employment income
TFSA withdrawals
CPP/QPP benefits
GIS payments
RRSP/RRIF withdrawals
Workers comp
Pension income
Social assistance
Investment income
Death benefits
Rental income
Lottery winnings
Capital gains (50%)
Principal residence sale
OAS itself
If you are planning annual withdrawals, compare these income sources in the context of your full retirement income plan.
Strategies to Reduce OAS Clawback
1. TFSA Over RRSP
Strategy
Impact
Withdraw from TFSA
Not counted as income
Withdraw from RRSP
Fully taxable, triggers clawback
Savings: $100K TFSA vs RRSP
~$1,500/year in OAS
This is why many retirees preserve TFSA room and coordinate RRSP/RRIF withdrawals with the RRIF calculator.
2. Pension Income Splitting
Scenario
Before Split
After Split
Spouse 1 income
$140,000
$105,000
Spouse 2 income
$70,000
$105,000
Total clawback
$7,350
$4,200
Savings
$3,150/year
3. Delay OAS to 70
Age Started
Monthly Increase
Break-Even
65
0%
—
66
+7.2%
67
+14.4%
68
+21.6%
69
+28.8%
70
+36%
~82 years old
Higher OAS at 70 means higher threshold before full clawback.
4. RRSP Meltdown Strategy
Withdraw more RRSP in early retirement (before OAS starts) to reduce RRIF minimums later. The RRSP to RRIF conversion guide explains this sequencing in more detail.