OAS payment amount in 2026 and how the OAS clawback works
Old Age Security is the one retirement benefit almost every long-term resident gets, yet the numbers confuse people: the amount changes every quarter, it is taxable, and higher earners can have part of it taken back. Below are the current payment amounts from Canada.ca, the exact clawback thresholds and how the repayment is calculated, how delaying works, and a worked example you can copy for your own figures.
On this page
2026 OAS payment amounts
OAS is indexed to the Consumer Price Index and adjusted in January, April, July and October. It can go up with the cost of living but is not reduced if prices fall. Canada.ca lists the following maximums for the current quarter:
| Age band | Maximum monthly OAS (Oct to Dec 2026) | Annualized (our arithmetic) |
|---|---|---|
| 65 to 74 | $762.50 | $9,150 |
| 75 and over | $838.75 | $10,065 |
Canada.ca says the October 2026 adjustment raised benefits by 1.4%, based on changes in the CPI. Seniors 75 and over get a permanent 10% higher pension, which started in July 2022; you receive it automatically the month after your 75th birthday. These are maximums. You get less if you have lived in Canada for fewer than 40 years after turning 18, or if the recovery tax applies. Check the amounts again each quarter, because the next adjustment lands in January 2027.
OAS is taxable income. It is reported on your return. If your income is low, you may also qualify for the Guaranteed Income Supplement, which is paid on top of OAS. To see when payments land, use our benefit payment dates guide.
Who gets the full amount
- You must be 65 or older and have lived in Canada for at least 10 years since turning 18 (if you live in Canada now).
- A full pension is based on 40 years of residence in Canada after age 18. If you have fewer, the partial pension is the number of years divided by 40.
- Canada.ca lists at least 20 years of residence if you live outside Canada.
You can start at 65 or as late as 70. OAS is not the same as the Canada Pension Plan: CPP depends on what you contributed from work, while OAS depends on residence and is subject to the clawback.
How the OAS clawback works
The clawback is officially the OAS recovery tax. If your net world income for a year is above the threshold, you repay 15% of the amount over it. The repayment is spread across the following July to June and deducted straight from your monthly pension. In the CRA's words, the amount is "divided monthly and deducted from your OAS pension payments."
Three practical points:
- The income year drives the payment year. 2025 income sets the recovery for July 2026 to June 2027.
- You report net world income on your tax return and the CRA calculates the repayment. You receive a letter describing the deductions.
- If the deductions cause financial hardship, you can ask the CRA to review your situation.
The formula uses net income, not just pension income. That means RRSP or RRIF withdrawals, employment income, rental income and the taxable part of capital gains all count, while a tax-free TFSA withdrawal does not show up as taxable income.
Clawback thresholds by year
| Recovery period | Income year | Starts above | Fully repaid at (65 to 74) | Fully repaid at (75+) |
|---|---|---|---|---|
| July 2025 to June 2026 | 2024 | $90,997 | $148,451 | $154,196 |
| July 2026 to June 2027 | 2025 | $93,454 | $152,062 | $157,923 |
| July 2027 to June 2028 | 2026 | $95,323 | $155,320* | $161,320* |
*Canada.ca marks the 2026 maximum figures as estimates based on maximum OAS amounts from January to September; they become final from October to December. Our check of the page showed them still labelled as estimates.
The "fully repaid" columns are the net incomes at which the whole pension is clawed back. Above that, you get no OAS for that recovery period. For official figures for your situation, use the Service Canada OAS Benefits Estimator or the guide that goes with form T4155.
Worked example
Marie is 68. Her 2025 net income was $110,000, made up of a work pension, RRIF withdrawals and her CPP. She receives OAS for the July 2026 to June 2027 period.
| Step | Arithmetic | Result |
|---|---|---|
| Net income for 2025 | $110,000 | |
| Threshold (July 2026 to June 2027) | - $93,454 | |
| Income above threshold | $110,000 - $93,454 | $16,546 |
| Annual recovery tax at 15% | $16,546 x 0.15 | $2,481.90 |
| Monthly deduction over 12 months | $2,481.90 / 12 | $206.83 |
| Maximum OAS before deduction (Oct to Dec 2026) | $762.50 | |
| Approximate monthly OAS after deduction | $762.50 - $206.83 | $555.67 |
This simple method matches the Canada.ca method (a $100,000 income gives $6,546 over the threshold and $981.90 to repay). The real monthly deduction depends on the OAS rate in each month of the period, so expect small differences. Marie still keeps more than 70% of her pension. At net income of $152,062 or more (ages 65 to 74), the pension is treated as fully repaid for the period, so no OAS is kept.
Delaying OAS: the 0.6% a month rule
Canada.ca says that if you delay, "payments increase by 0.6% each month (7.2% per year), up to 36% at age 70." You can start at 65 or as late as 70.
| Start age | Increase | Monthly at today's 65 to 74 maximum (our arithmetic) |
|---|---|---|
| 65 | 0% | $762.50 |
| 66 | 7.2% | $817.40 |
| 67 | 14.4% | $872.30 |
| 68 | 21.6% | $927.20 |
| 69 | 28.8% | $982.10 |
| 70 | 36% | $1,037.00 |
Future quarterly indexing raises these amounts too, so treat them as an illustration at today's rate. Canada.ca also notes there is no benefit to waiting if you are eligible for the Guaranteed Income Supplement or are already over 70. Because the recovery tax is based on income, a larger deferred pension does not escape the clawback: the same 15% rule applies to your income above the threshold.
Ways people lower net income
This is general information, not advice. Because the clawback is driven by net income, people typically look at levers like these:
- Registered accounts: an RRSP deduction lowers net income in the year you claim it. See our RRSP guide.
- TFSA withdrawals: the CRA says TFSA income and withdrawals are generally tax-free. Check the 2026 TFSA limit (it is $7,000 per CRA).
- Timing of income: a one-time event, such as a large RRIF withdrawal or an asset sale, raises net income only for that year, and so affects only the recovery period tied to it.
If you are near the threshold, check the CRA calculation with a tax professional before you act.
Start at 65 or wait?
| Situation | Start at 65 | Delay |
|---|---|---|
| Need the income now | Yes | Needs other money to bridge |
| Expect GIS | Yes, no benefit to waiting | No gain per Canada.ca |
| High income, near the clawback | Pension is partly repaid anyway | Larger pension, same 15% rule |
| Living outside Canada, fewer than 20 years of residence, no agreement | Consider starting at 65 | Does not give higher payments |
For lower-income seniors, our GIS guide covers the top-up. For the rest of your plan, the Canadian money guide links the basics together, and the tools page has more calculators.
How to estimate your OAS clawback
- Find your net income for the income year.
- Look up the threshold for the recovery period (for 2025 income it is $93,454).
- Subtract the threshold from your net income. If the result is zero or negative, no recovery tax applies.
- Multiply the difference by 15% to get the annual repayment.
- Divide by 12 to see the approximate monthly deduction from July to June.
- Check the result with the Service Canada OAS Benefits Estimator.
Questions people ask
What is the OAS payment amount in 2026?
For October to December 2026, the maximum monthly OAS pension is $762.50 for ages 65 to 74 and $838.75 for ages 75 and over, per Canada.ca. Amounts are adjusted quarterly for inflation, and your actual payment can be lower if you have fewer than 40 years of Canadian residence after 18 or the recovery tax applies.
What is the OAS clawback threshold for 2026?
For payments from July 2026 to June 2027, the recovery tax applies to 2025 net income above $93,454. For the 2026 income year (July 2027 to June 2028) the threshold is $95,323. You repay 15% of the amount above the threshold.
At what income is OAS fully clawed back?
For July 2026 to June 2027, the pension is fully repaid at 2025 net income of $152,062 for ages 65 to 74 and $157,923 for age 75 and over. For the 2026 income year the figures are listed as estimates: $155,320 and $161,320.
How is the OAS clawback calculated?
Subtract the threshold from your net world income and multiply the result by 15%. Example: $110,000 minus $93,454 is $16,546, times 15% is $2,481.90 for the year, deducted monthly from the pension.
How much does OAS increase if I delay it?
Canada.ca says payments increase by 0.6% each month you wait after 65, which is 7.2% per year, up to 36% at age 70. There is no benefit to waiting if you are eligible for GIS or are over 70.
Is OAS taxable?
Yes. OAS is taxable income and is included in your net income. Higher earners may also face the recovery tax, which is deducted from monthly payments.
When does the 10% increase at 75 start?
The OAS pension rises automatically by 10% the month after your 75th birthday. The government made this permanent increase for seniors 75 and over in July 2022.
Looni reads your statements and flags fees, subscriptions and interest charges, so more of your income stays yours. Read-only, no advice.
Sources
Government of Canada, Old Age Security: payment amounts (October to December 2026 maximums of $762.50 and $838.75; 1.4% October 2026 increase; 10% increase at 75), OAS recovery tax (CRA thresholds for 2024, 2025 and 2026 income years, 15% rate, July to June recovery, monthly deduction), When to start your OAS pension (0.6% per month, 36% at age 70, 40-year residence basis, 10-year minimum) and OAS eligibility. The CRA TFSA page is at What is a TFSA, and the $7,000 2026 TFSA limit is from the CRA table of RRSP, TFSA and other limits. Marie is an illustrative example and the arithmetic is ours.
RRIF withdrawals count toward the income the OAS recovery tax looks at; our RRIF minimum withdrawal guide has the CRA factor table and a calculator.