OAS Clawback Calculator
How much Old Age Security is recovered at 15% of net income above $93,454, the income at which OAS disappears, the monthly pension you keep and strategies to reduce the recovery tax.
How it works
recovery = 15% × (net income − $93,454), capped at the OAS received; OAS ends around $151,668 (65–74) or $157,490 (75+) for 2025 income
Old Age Security is income-tested: once net income passes the threshold (indexed yearly, $93,454 for 2025), 15 cents of every extra dollar is recovered, and the following July’s payments are reduced in advance based on the previous year’s return. Because it stacks on top of income tax, seniors in the zone face marginal rates above 50%. Income that does not count — TFSA withdrawals, the non-taxable half of capital gains, return of capital — is the main planning lever, along with splitting pension income with a spouse.
Worked example
$110,000 at 65: $16,546 over the threshold × 15% = $2,482 recovered, leaving $6,250 of the $8,732 pension — $521 a month.
Frequently asked questions
Is the clawback per person or per couple?
Per person — each spouse’s own net income is tested, which is why pension splitting helps.
Does deferring OAS avoid it?
Deferral raises the pension 0.6% a month (36% at 70) but the same 15% recovery applies once you start; it helps if income falls later.
Related calculators
Uses 2025 tax-year Canadian federal and provincial figures (indexed annually). Rates and thresholds change — confirm with CRA, your province or a tax professional. Educational estimate, not tax advice.