OAS Payment Amounts and Clawback Rules

Old Age Security (OAS) is a federal pension paid to most Canadians 65 and older, indexed quarterly and not based on past contributions. For the January to March 2026 payment quarter, the maximum monthly OAS is $743.05 for ages 65-74 and $817.36 for ages 75 and older. The OAS recovery tax (clawback) reduces or eliminates OAS for high-income seniors: the 15% clawback begins on net income above approximately $90,997 (the 2024 threshold; indexed annually). Above approximately $148,000 of net income, OAS is fully clawed back for ages 65-74.

Maximum amounts (January to March 2026 payment quarter)

OAS amounts are indexed quarterly. The numbers below apply for the January-March 2026 payment quarter and will be reviewed every April, July, and October. Confirm the current quarter’s amount on Service Canada’s page.

The 10% age-75 uplift was made permanent in 2022 and is built into the higher monthly amount.

Eligibility

To receive the full OAS you must be:

• 65 or older
• A Canadian citizen or legal resident
• Have lived in Canada for at least 40 years after age 18 (for the full pension)

If you lived in Canada between 10 and 40 years after age 18, you receive a partial OAS proportional to your residency. International social security agreements may help you qualify even with fewer years in Canada.

The OAS recovery tax (clawback)

The OAS recovery tax reduces OAS by 15% of every dollar of net income above a threshold. For 2024 tax-year income, the threshold was approximately $90,997. The threshold is indexed every January for tax year. Above approximately $148,000-$153,000 of net income, OAS is fully clawed back — you receive nothing.

The clawback is calculated based on the prior tax year, so the OAS you receive in July 2026 – June 2027 is affected by your 2025 income. CRA reports clawback recovery on your T4A(OAS) slip in box 22.

Income-management strategies to reduce clawback

• Spread RRIF withdrawals. Lump-sum withdrawals in a single year can trigger clawback; smaller annual amounts may stay below the threshold.
• Income splitting. Couples can split eligible pension income (CPP, RRIF, DB pension) on their tax returns, lowering one spouse’s net income below the threshold.
• TFSA over RRSP for late-career savings. TFSA withdrawals do not count as income; RRIF withdrawals do.
• Realize capital gains earlier. Before age 65 (or in years of lower income), to avoid concentrating gains in OAS years.
• Charitable donations. Reduce net income via Schedule 1 donations.
• Delay OAS to 70. Adds 36% (0.6%/month) to the eventual amount but you also delay the clawback exposure by 5 years.

For more on the start-age decision, see Should you take CPP at 60, 65, or 70? (the OAS deferral logic is similar).

Quick clawback calculation

If your projected net income is $X and the threshold is $T, your annual OAS recovery tax is 15% × (X − T). Your monthly OAS is reduced by that recovery divided by 12. Use the OAS clawback calculator to project your specific situation.

Payment dates and how OAS is paid

OAS is paid monthly on the third-last business day of each month (the “CPP/OAS payment date”). If you receive GIS or the Allowance, those amounts are added to the same monthly deposit. Most Canadians are automatically enrolled in OAS at age 65; if you don’t receive an enrolment letter by 11 months before your 65th birthday, apply through Service Canada.

Worked example

Frank is 68, retired with $115,000 of net income from his RRIF and other investments (2025 tax year):

Frank loses about 36% of his OAS to the recovery tax. Spreading the same total RRIF over a few extra years (so each year’s income stays nearer the threshold) could preserve a larger share of OAS.

For deeper detail on the clawback specifically, see OAS clawback threshold by income year, what income counts toward OAS clawback, and OAS clawback strategies.