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CPP/OAS Clawback Calculator 2026

Free 2026 CPP/OAS Clawback Calculator. Estimate your OAS recovery tax, clawback amount, and remaining Old Age Security after income threshold. Plan retirement income to minimize clawback. CRA-aligned calculations.

Last revised 3 September 2026

By Team GlobalCalqulate · About our editorial standards

Personal Information

Current Age

Retirement Benefits

Annual OAS Benefit

Annual CPP Income

Retirement Income Sources

RRSP Withdrawals

RRIF Withdrawals

Employer Pension Income

Employment Income

Interest / Dividend Income

Taxable Capital Gains

Financial Disclaimer: This result is an educational estimate produced by applying published rates and thresholds to the figures you entered. It is not a tax determination: your actual liability depends on circumstances this calculator does not collect. Confirm your position with the relevant tax authority or a qualified accountant before acting on it. Full disclaimer.

Sources & methodology

Formula:: See methodology below
Reference:: Government of Canada
Rates for:: 2026
Figures verified:: September 2026 — checked against the primary source above
Content last updated:: September 2026
Scheduled re-verification:: October 2026

Calculation type: Rule-based calculation. Uses 2026 rates and thresholds. Figures are taken from Government of Canada and Canada Revenue Agency — see sources below.

Reviewed by Team GlobalCalqulate — Verifies each figure against the issuing authority's published source · Checked 15 September 2026

Your entries stay on this device. This calculator runs entirely in your browser — the figures you type are not sent to us or to anyone else. The page itself uses cookies for analytics and advertising, described in the privacy policy.

Formula & methodology

Formula used

net income = CPP + RRSP/RRIF withdrawals + pension + employment + investment income + capital gains (OAS itself excluded)
clawback = min(max(0, net income − threshold) × 15%, annual OAS benefit)
remaining OAS = annual OAS benefit − clawback

The calculator adds up all your taxable retirement income sources (not including OAS itself), and if that total exceeds the annual OAS recovery-tax threshold, repays 15% of the excess back to the government — capped at your full OAS benefit.

Step-by-step calculation

1. Total net income
Sums CPP, RRSP/RRIF withdrawals, pension, employment, investment income and taxable capital gains. OAS is deliberately excluded from this total.
2. Income above threshold
Net income minus the current OAS recovery-tax threshold, floored at $0.
3. Recovery tax
15% of the income above threshold, capped so it can never exceed your actual annual OAS benefit.
4. Remaining OAS
Your annual OAS benefit minus the recovery tax, converted to a monthly figure.

Limitations

Uses the OAS threshold and 15% rate as flat figures for the full tax year; it does not model mid-year threshold indexing.
Does not apply pension income splitting, which can lower a couple's combined clawback exposure — you would need to manually adjust each spouse's income inputs to model that.

This page is educational. It applies published rates and thresholds to the figures you enter and shows the arithmetic behind the result. It is an estimate, not a tax determination: your actual liability depends on circumstances this calculator does not collect, and only the relevant tax authority — or an accountant who can see your full position — can confirm what you owe.

Sources & references

Old Age Security payment amounts — Government of Canada
OAS Recovery Tax (Clawback) — Canada Revenue Agency
Guaranteed Income Supplement – payment amounts — Government of Canada
CPP contribution rates, maximums and exemptions — Canada Revenue Agency
RRSPs and other registered plans for retirement — contribution limits — Canada Revenue Agency

Help & FAQs

Frequently Asked Questions

Clear answers to common questions to help you use this calculator confidently.

What is the OAS clawback threshold for 2026?

Tap to view the answer

The OAS recovery tax threshold for 2026 is $95,323 in net income. If your net income exceeds this amount, you repay 15% of the excess, reducing your OAS benefit. Full clawback occurs once net income reaches roughly $154,700, where the reduction equals your entire annual OAS payment.

How much is the OAS clawback?

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The clawback is 15% of the amount by which your net income exceeds the $95,323 threshold. For example, if your income is $5,000 over the threshold, you repay $750 of your annual OAS — capped so it can never exceed your total OAS benefit.

Does CPP count toward the OAS clawback?

Tap to view the answer

Yes. Canada Pension Plan payments are included in your net income for the OAS clawback calculation, along with RRSP/RRIF withdrawals, pension income, employment income, investment income, and taxable capital gains. OAS itself is excluded from the calculation.

Can I avoid the OAS clawback entirely?

Tap to view the answer

It's possible to stay under the threshold through strategies like pension income splitting with a lower-income spouse, drawing down TFSA savings (which don't count toward net income), and carefully timing RRSP/RRIF withdrawals. Use this calculator to test different income scenarios.

How does this calculator handle Quebec?

Tap to view the answer

This calculator covers the federal OAS clawback, which applies the same way in every province including Quebec. Quebec runs its own QPP instead of CPP, but the OAS recovery tax rules and net-income calculation are identical.

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How to Use This Calculator

Enter retirement income

Add CPP, pension income, RRSP/RRIF withdrawals and other taxable income.

Review total net income

The calculator combines all taxable income sources used for OAS recovery tax calculations.

Check clawback impact

See whether your income exceeds the annual OAS recovery tax threshold.

Plan withdrawals

Experiment with RRSP/RRIF withdrawals to reduce OAS clawback exposure.

Understanding Your Results

OAS Recovery Tax
Higher-income seniors may repay part or all of their Old Age Security benefit when income exceeds the annual threshold.
Net Income
The income amount used by CRA to determine OAS clawback eligibility.
Income Above Threshold
The portion of income that triggers the OAS recovery tax calculation.
Remaining OAS
The amount of OAS you keep after any recovery tax reduction.

Understanding the OAS Recovery Tax

What the clawback is

The Old Age Security recovery tax, commonly called the clawback, reduces OAS payments for higher-income seniors. For every dollar of net income above the threshold — $95,323 for the 2026 income year — OAS is reduced by 15 cents.

It is a genuine 15% addition to your marginal rate within the clawback range. A retiree with $110,000 of income loses about $2,200 of OAS on top of ordinary income tax, so their effective marginal rate on income in that band can exceed 50%. At a sufficiently high income the entire pension is eliminated. CPP, by contrast, is never clawed back at any income level.

The timing lag that confuses people

The recovery tax is applied against the July-to-June benefit year using the previous calendar year's income. Your payments from July 2026 through June 2027 are reduced based on your 2025 income.

This lag matters. A one-off spike — selling a property, a large RRIF withdrawal, or a severance payment — reduces your OAS for a twelve-month period starting the following July, long after the money has been spent. It also means that retiring mid-year, when income drops, does not restore OAS until the July after the first full low-income year. You can ask Service Canada to reconsider if your income has fallen sharply due to retirement.

Which income counts

The test uses net income before adjustments, which is broader than many people expect. It includes CPP, employer pension income, RRIF and RRSP withdrawals, employment and self-employment income, interest, rental income, and the taxable half of capital gains.

The trap is Canadian dividends. Eligible dividends are grossed up by 38% before being included in income, so $10,000 of dividends adds $13,800 to the figure the clawback is tested against — even though you received only $10,000. A dividend-heavy portfolio can therefore trigger a clawback on income that was never actually received. TFSA withdrawals count for nothing at all, which is precisely why they are so valuable at this stage of life.

Reducing your exposure

The most effective tool is a TFSA. Withdrawals are invisible to the income test, so drawing spending money from a TFSA rather than a RRIF keeps net income down without reducing your standard of living.

Pension income splitting lets couples move up to 50% of eligible pension income to the lower-income spouse, which can bring both below the threshold. Drawing down an RRSP earlier — in your sixties, before OAS begins — reduces the mandatory RRIF minimums that push income up later. Using the younger spouse's age to set RRIF minimums lowers required withdrawals. Deferring OAS to 70 is also worth considering if you will be over the threshold at 65 regardless.

How the reduction is actually collected

Service Canada normally reduces your monthly payments across the benefit year rather than issuing a bill, so the clawback appears as a smaller deposit each month.

Where the reduction was not applied — commonly in the first year it becomes relevant — it is collected as a recovery tax on your return instead, which can produce an unexpected balance owing. If your income has dropped substantially because you retired or stopped receiving a pension, you can file form ISP3008 asking Service Canada to base the reduction on your estimated current income rather than the prior year, restoring payments sooner.

Keeping it in perspective

Reaching the clawback threshold means having a high retirement income, which is a good position to be in. Losing some OAS is not a reason to turn down income, and structuring a whole retirement around avoiding it usually costs more than it saves.

It is worth planning around at the margins — choosing which account to draw from, timing a large withdrawal, splitting pension income — rather than treated as something to be eliminated at any price. Note too that OAS rises permanently by 10% at 75, from $751.97 to $827.17 a month, so the amount at stake grows as you age, and both figures are indexed quarterly to inflation.

Formula & methodology

Formula used

net income = CPP + RRSP/RRIF withdrawals + pension + employment + investment income + capital gains (OAS itself excluded)
clawback = min(max(0, net income − threshold) × 15%, annual OAS benefit)
remaining OAS = annual OAS benefit − clawback

Step-by-step calculation

1. Total net income
Sums CPP, RRSP/RRIF withdrawals, pension, employment, investment income and taxable capital gains. OAS is deliberately excluded from this total.
2. Income above threshold
Net income minus the current OAS recovery-tax threshold, floored at $0.
3. Recovery tax
15% of the income above threshold, capped so it can never exceed your actual annual OAS benefit.
4. Remaining OAS
Your annual OAS benefit minus the recovery tax, converted to a monthly figure.

Limitations

Uses the OAS threshold and 15% rate as flat figures for the full tax year; it does not model mid-year threshold indexing.
Does not apply pension income splitting, which can lower a couple's combined clawback exposure — you would need to manually adjust each spouse's income inputs to model that.

Understanding the OAS Recovery Tax

What the clawback is

The timing lag that confuses people

The recovery tax is applied against the July-to-June benefit year using the previous calendar year's income. Your payments from July 2026 through June 2027 are reduced based on your 2025 income.

Which income counts

Reducing your exposure

How the reduction is actually collected

Service Canada normally reduces your monthly payments across the benefit year rather than issuing a bill, so the clawback appears as a smaller deposit each month.

Calculator inputs

Personal Information

Retirement Benefits

Retirement Income Sources

Your results

Sources & methodology

Formula & methodology

Formula used

Step-by-step calculation

Limitations

Sources & references

What is the OAS clawback threshold for 2026?

How much is the OAS clawback?

Does CPP count toward the OAS clawback?

Can I avoid the OAS clawback entirely?

How does this calculator handle Quebec?

Related calculators

More Canada calculators

Calculator inputs

Personal Information

Retirement Benefits

Retirement Income Sources

Your results

Sources & methodology

How to Use This Calculator

Example OAS Clawback Calculation

Understanding Your Results

Key Tips

Understanding the OAS Recovery Tax

What the clawback is

The timing lag that confuses people

Which income counts

Reducing your exposure

How the reduction is actually collected

Keeping it in perspective

Formula & methodology

Formula used

Step-by-step calculation

Limitations

Sources & references

How to Use This Calculator

Example OAS Clawback Calculation

Understanding Your Results

Key Tips

Understanding the OAS Recovery Tax

What the clawback is

The timing lag that confuses people

Which income counts

Reducing your exposure

How the reduction is actually collected

Keeping it in perspective