What is the OAS clawback?

Officially the 'Old Age Security pension recovery tax,' it reduces OAS payments by 15% of net world income above an annual threshold ($93,454 for the 2025 tax year). The reduction is collected as additional tax on your return.

Net world income from line 23400 of your tax return — gross income minus most deductions but BEFORE the OAS recovery itself. RRSP withdrawals, RRIF withdrawals, CPP, OAS itself, employment income, dividends (grossed-up), interest, and rental income all count. TFSA withdrawals do NOT count.

How can I reduce the clawback?

Common strategies: split pension income with a spouse (down to age 65 with RRIF income), draw down TFSA before RRIF, defer OAS up to age 70 (8.4% increase per year deferred), realise capital losses to offset gains, contribute to a younger spouse's RRSP, or simply spend less from RRIF in high-clawback years.

What's the 75+ enhancement?

OAS pension was permanently increased 10% for seniors aged 75+ in July 2022. The clawback threshold for full elimination is therefore higher: $159,892 (75+) vs $154,196 (65-74). This calculator handles both.

Do I have to repay the clawback?

Yes — if Service Canada estimates you'll be subject, your monthly OAS is reduced in advance (called 'Recovery Tax'). Any over- or under-collected amount is reconciled on your tax return.

OAS Clawback Calculator

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Free OAS clawback calculator. The Old Age Security recovery tax (commonly called the 'OAS clawback') reduces OAS pension payments by 15 cents for every dollar of net world income above the 2025 threshold of $93,454. Full clawback occurs at $154,196 (under-75) or $159,892 (75+). This tool estimates your annual OAS reduction and shows your effective OAS payment.

Net world income (CAD)

Line 23400 of your tax return — before OAS recovery is added back.

Gross annual OAS (CAD)

Typical max ≈ $8,732 (under 75) or $9,605 (75+) in 2025.

Age 75 or older (10% pension boost + higher cap)

2025 · Threshold $93,454 · Recovery rate 15% · Full clawback at $154,196

Annual clawback

$982

Net OAS / yr

$7,750

$646 / month

Income above threshold$6,546

× 15% recovery rate$982

Disclaimer: For informational purposes only. This is not financial, tax, or legal advice — consult a licensed professional before making decisions.

Frequently Asked Questions

References

Old Age Security pension recovery tax — Government of Canada

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Frequently Asked Questions

References and sources

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