General information only — not financial advice for your situation.
This is a learning tool. Always check CRA My Account records and talk to a qualified professional for your own numbers.
Plain English
The Guaranteed Income Supplement is extra money for low-income seniors, but almost any other income you earn reduces it aggressively — dollar for dollar in some cases.
Technical definition
The Guaranteed Income Supplement (GIS) provides income support to low-income OAS recipients. It is aggressively clawed back against almost all other income sources including RRSP/RRIF withdrawals, CPP, employment, and investment income. The effective clawback rate can reach 50–75% when combined with regular tax, creating very high marginal rates for low-income seniors. TFSA withdrawals are excluded from the GIS income test.
Examples
- • A single senior receiving $5,000 in RRIF income could lose $2,500+ in GIS benefits on top of regular income tax, creating an effective marginal rate over 70%.
- • The same senior withdrawing $5,000 from a TFSA instead loses $0 in GIS — the TFSA withdrawal doesn't count as income for GIS purposes.
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About this site
Every number on this site is sourced from CRA publications, the Income Tax Act, or provincial fiscal releases. We show the math, cite the sources, and never tell you what to do with your money.