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
If your income in retirement is too high, the government takes back some or all of your Old Age Security payments. In 2026, this starts when income exceeds $95,323.
Technical definition
The OAS Pension Recovery Tax (commonly called the OAS clawback) reduces OAS benefits for higher-income retirees. For 2026, the recovery threshold is $95,323 of net income. Benefits are reduced by 15 cents for every dollar of income above the threshold, potentially eliminating the entire OAS pension. TFSA withdrawals are not included in the income test.
Examples
- • Your net income is $105,323 — that's $10,000 above the $95,323 threshold. Your OAS is clawed back by 15% × $10,000 = $1,500 for the year.
- • RRSP/RRIF withdrawals count toward the OAS clawback income test. TFSA withdrawals do not, making the TFSA advantageous for retirees near the threshold.
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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.