Oas Gis Clawback Canada

Old Age Security (OAS) is a cornerstone of Canadian retirement, but the clawback rules confuse most people — and confusion costs money. This guide reveals how OAS works, when the clawback kicks in, and five concrete strategies to keep more of what you've earned.

How Old Age Security Works

OAS is fundamentally different from CPP. While CPP is contributory (based on what you paid in), OAS is funded from general tax revenue and is based purely on residency. You don't need any employment history to receive OAS — only time lived in Canada.

To qualify for OAS at age 65, you must have been a Canadian resident for at least 40 years after age 18. If you have fewer than 40 years but at least 10 years of residency, you receive a partial OAS benefit — prorated on your residency years. This matters for Canadians who immigrated later in life.

The amount paid has nothing to do with your earnings history. Everyone with the same age and residency receives the same base OAS payment — though individual circumstances (income clawback, marital status) affect the net amount received.

2026 OAS Payment Amounts

In 2026, the base OAS payment is approximately:

• Ages 65–74: approximately $727 per month ($8,724 annually)
• Ages 75 and older: approximately $800 per month ($9,600 annually), reflecting a 10% increase introduced in 2022

These amounts are indexed quarterly to inflation, so they increase slightly each quarter. The figures above are estimates for mid-2026 and will be higher by year-end.

The OAS Clawback: How It Works

Here's where retirement planning gets thorny. If your net income (line 23600 on your tax return) exceeds a threshold, Service Canada reclaims part of your OAS benefit. In 2026, the clawback threshold is approximately $90,997.

The Clawback Formula

For every dollar of net income above the threshold, you lose 15 cents of OAS. This applies until your OAS is entirely clawed back.

Let's work through an example: