When this number applies
Applies to income earned in the 2026 tax year. The repayment shows up as reduced OAS deposits from July 2027 through June 2028. The threshold is indexed and typically rises each year with the November CRA update.
The clawback, officially the OAS recovery tax, is tested per person against net income (line 23400): pensions, Canada Pension Plan (CPP), Registered Retirement Income Fund (RRIF) withdrawals, employment income, interest, the taxable half of capital gains and grossed-up dividends all count. Tax-Free Savings Account (TFSA) withdrawals never do.
The full 65 to 74 pension is consumed once 2026 net income reaches roughly $154,767. Between the threshold and that point, OAS shrinks gradually rather than vanishing.
| Net income | Over the threshold | OAS repaid for the year |
|---|---|---|
| $95,323 or less | $0 | $0 |
| $100,000 | $4,677 | $702 |
| $110,000 | $14,677 | $2,202 |
| $125,000 | $29,677 | $4,452 |
| $154,767 and up | $59,444 | $8,917 (the full pension) |
Quick questions
Is the OAS clawback threshold per person or per couple?
Per person. Each spouse is tested individually, so a couple can have nearly $190,000 of combined income with no clawback at all if it is split evenly.
When does the threshold change?
It is indexed to inflation and normally rises with the CRA's November announcement for the following tax year. This page tracks the figure the TruePath engine currently applies.
Do TFSA withdrawals push me toward the threshold?
No. TFSA withdrawals are not income on your tax return, which is why withdrawal order can change how much OAS a retiree keeps.