ExampleNet income $95,000 · OAS $8,724/yr · $10,000 RRSP withdrawal

Home/Calculators/OAS Clawback
⚠️OAS Recovery Tax Applies2025 Threshold · $93,454
Clawback: −$2,100/yrOAS retained: $6,817/yrKept: 76%
OAS Recovery Tax Estimator
💰Income
Net Income (excl. RRIF draw)?
$
OAS Annual Amount?
$
📤RRIF / RRSP Withdrawal
Planned Withdrawal?
$
2025 threshold$93,454
Full clawback at (65–74)$152,062
Clawback rate15¢ per $1 over
Clawback Amount
−$2,100
recovery tax / year
OAS Retained
$6,817
76% of entitlement
Total Income
$105,000
incl. OAS + RRIF draw
Over Threshold
$14,003
excess income
📊Clawback Breakdown
Base Net Income$95,000
OAS Annual$8,917
RRIF / RRSP Draw$10,000
Total Income$105,000
2025 Threshold$90,997
Income Over Threshold$14,003
Clawback (15%)−$2,100
OAS After Clawback$6,817/yr ($568/mo)
⚠️Withdrawal Impact
OAS without RRIF draw$8,317/yr
OAS with RRIF draw$6,817/yr
Extra clawback from draw−$1,500/yr
Your $10,000 RRIF withdrawal costs an additional $1,500/yr in OAS clawback. Consider spreading withdrawals, or shifting spending to TFSA.
📉OAS Retained at Each Income Level▼
📋CRA Clawback Thresholds
Jul 2025 – Jun 2026
Income year: 2024
Starts at$90,997
Full clawback (65–74)$148,451
Full clawback (75+)$154,196
Jul 2026 – Jun 2027
Income year: 2025
Starts at$93,454
Full clawback (65–74)$152,062
Full clawback (75+)$157,923
Jul 2027 – Jun 2028
Income year: 2026 est.
Starts at$95,323
Full clawback (65–74)$154,753
Full clawback (75+)$160,696
CRA – OAS recovery tax ↗
💡Strategies to Reduce Clawback▲
▸TFSA withdrawals: don't count as income. Prefer TFSA over RRIF for spending above the threshold.
▸RRSP meltdown: draw down RRSP between ages 60–71 - before OAS begins - to lower future mandatory RRIF minimums.
▸Pension income splitting: split eligible pension income with a lower-income spouse to reduce each person's net income.
▸Defer OAS: if income will drop after 70, wait. You get 36% more OAS - often with less clawback once the RRIF balance shrinks.
▸Spread RRIF withdrawals: take more than the minimum in low-income years to smooth out income and avoid spikes.
🔍How the Recovery Tax Works▼
🔗Retirement Calculators▼

What's Next?

RRIF Minimum WithdrawalProject mandatory RRIF withdrawals - they directly affect your OAS clawbackCPP & OAS TimingDeferring OAS to age 70 can give 36% more income with less clawback riskAccount OptimizerRRSP vs TFSA priority - TFSA withdrawals never trigger OAS clawbackSalary & TaxModel CPP, OAS, and pension income together with your marginal tax rate

OAS recovery tax thresholds: 2025 income = $93,454 (effective Jul 2026 – Jun 2027); 2026 estimated = $95,323. Source: canada.ca. OAS max Apr–Jun 2026: $743.05/mo at 65, $817.36/mo at 75. Clawback calculated on line 23600 net world income. Not financial advice.

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About this calculator

Updated April 2026

OAS clawback (officially 'OAS Recovery Tax') kicks in at $93,454 of net world income in 2026 and claws back 15 cents of every dollar above that threshold - fully eliminating OAS at around $151,668. This calculator shows exactly how much OAS you'll lose based on your projected retirement income and suggests strategies to stay below the threshold.

What you can do with it

  • See your OAS clawback amount at different RRIF withdrawal levels.
  • Model drawing down RRSP before 65 to reduce post-65 RRIF minimums.
  • Compare pension-income splitting with a spouse to avoid clawback.
  • See how much TFSA withdrawals help (they don't count as income).

How the math works

Clawback = 15% × (net world income − $93,454), capped at the full OAS amount you're receiving. Net world income includes employment, CPP, OAS, RRIF withdrawals, eligible dividends grossed-up, capital gains (taxable half), and rental income. TFSA withdrawals, return of capital, and principal on non-registered investments don't count.

Canadian context - 2026

A retiree drawing $50,000/year from a $1M RRIF plus $25,000 CPP + $9,000 OAS sits at $84,000 - safely below clawback. The same retiree drawing $80,000 RRIF + $25,000 CPP + $9,000 OAS loses roughly $3,200 of OAS to clawback. Shifting $30,000 of that draw to a TFSA withdrawal eliminates the clawback.

Frequently asked questions

What income triggers OAS clawback in 2026?

The OAS recovery tax (clawback) applies when your net world income exceeds $93,454 in 2026 (indexed annually). You repay 15% of income above that threshold, and OAS is fully eliminated at approximately $151,668. Income includes RRIF withdrawals, CPP, employment income, and investment income.

How can I reduce OAS clawback?

Common strategies include: (1) drawing down RRSP/RRIF before age 65 to reduce future withdrawals; (2) income-splitting eligible pension income with a lower-income spouse; (3) deferring OAS to 70 while keeping income lower in earlier retirement years; (4) using TFSA withdrawals which do not count as income.

Do TFSA withdrawals count toward OAS clawback income?

No. TFSA withdrawals are not considered income for any purpose, including OAS clawback calculations. This makes a large TFSA one of the most effective tools to fund retirement spending without triggering the OAS recovery tax.

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