OAS Clawback Calculator Canada — 2026 Income
See how 2026 net world income can reduce Old Age Security from July 2027 to June 2028. Separate a planned RRSP, RRIF or other taxable-income decision to show the recovery tax it adds.
Published by GrowThenDraw Editorial Team · Editorial policy · Methodology & sources
The official upper threshold is estimated until later in 2026. The entered-OAS figure is the point where 15% recovery equals the annual OAS amount you supplied.
| Scenario | Net world income | Above threshold | OAS recovered | OAS retained | Monthly retained |
|---|---|---|---|---|---|
| Before this plan | $90,000.00 | $0.00 | $0.00 | $8,967.90 | $747.32 |
| After this plan | $110,000.00 | $14,677.00 | $2,201.55 | $6,766.35 | $563.86 |
Understand OAS recovery tax
See the year-to-payment timing, 15% formula, net-world-income boundary and a worked withdrawal example.
Estimate RRSP withholding and bracket tax
OAS recovery is only one layer. Compare gross withdrawal, source withholding and estimated income tax separately.
The 2026 OAS recovery threshold is $95,323
Service Canada publishes a minimum 2026 net-world-income threshold of $95,323 for the July 2027 to June 2028 recovery period. Above it, the recovery tax is 15% of the excess, capped by the OAS pension for the period.
Service Canada's current estimated full-recovery thresholds are $155,109 for ages 65 to 74 and $161,088 for age 75 and over. The upper figures are estimates until finalized later in the year, so this calculator also derives a visitor-specific cap from the annual OAS amount entered.
Start with net world income, not gross salary
The recovery calculation starts from net world income, not employment income alone. For a Canadian resident this is generally connected to net income on line 23600 and includes taxable OAS. Foreign income and return-specific deductions can change the figure.
Enter your estimated net world income before the planned extra income, then enter the taxable RRSP/RRIF withdrawal or other decision separately. That split lets the page show how much recovery already existed and how much the new decision adds.
A withdrawal can face tax and OAS recovery at the same time
An RRSP or RRIF withdrawal is generally taxable income. If it crosses the OAS threshold, some of the withdrawal may also trigger the 15% recovery tax. The calculator isolates that additional OAS recovery but does not calculate federal or provincial income tax.
The effective recovery percentage shown is not a tax bracket. It is the extra OAS recovery divided by the planned extra income. It can be below 15% when only part of the plan crosses the threshold or when OAS is already fully recovered.
What this calculator does not decide
It does not determine OAS eligibility, partial-pension residence history, deferral increases, GIS, non-resident treaty treatment, line 23600, deductions, pension splitting or the exact amount Service Canada will withhold. Use your tax return and official OAS notice for those figures.
An income reduction needed to restore full OAS is a mathematical threshold, not a recommendation to make an RRSP contribution, defer income or change investments. Eligibility, cash needs, tax rates and contribution room must be assessed separately.
Frequently asked questions
What is the OAS clawback threshold for 2026?
Service Canada publishes $95,323 of 2026 net world income as the minimum recovery threshold. That income affects OAS paid from July 2027 to June 2028.
How is the OAS clawback calculated?
The recovery tax is 15% of net world income above the applicable threshold, capped by the OAS pension for the recovery period. The actual calculation and withholding are administered by CRA and Service Canada.
Does OAS itself count in net world income?
Yes. Service Canada's recovery-range table states that net world income includes the OAS pension. Use a line-23600 estimate that includes taxable OAS rather than adding it twice.
Can an RRSP or RRIF withdrawal trigger OAS clawback?
It can because taxable RRSP and RRIF withdrawals generally increase net income. This calculator separates the planned withdrawal so you can see the extra recovery tax it may cause, before income tax.
Are the full OAS clawback thresholds final?
The $95,323 minimum threshold is published for 2026. Service Canada labels the current age-specific maximum thresholds as estimates during January through September and finalizes them from October through December.
Is GIS included?
No. Guaranteed Income Supplement uses different household-income rules and is excluded. This tool is only for the OAS pension recovery tax.
Rules and methodology verified 2026-08-10:
- Service Canada: OAS pension recovery tax, thresholds, periods and 15% formula
- Service Canada: 2026 maximum amounts and age-specific recovery ranges
- Service Canada: current OAS payment amounts and partial-pension warning
- CRA: line 23500 social benefits repayment and lower-income waiver route
Scope: 2026 net world income, the published $95,323 minimum threshold, 15% recovery, an entered annual OAS cap, age 65–74 or 75-plus official estimated upper range, and one separately entered taxable-income decision.
Excludes OAS eligibility, residence history, partial pensions, deferral increases, GIS and Allowance benefits, non-resident treaty rules, exact line 23600, income tax, credits, deductions, pension splitting, withholding administration, waiver eligibility, future finalized upper thresholds and personalised suitability. Educational estimate only, not financial, retirement or tax advice.