A 🇨🇦 OAS Clawback Calculator (Recovery Tax 2025) computes the tax owed on a given income. It applies the standard formula to the values you enter and returns the result instantly, without sending any data to a server. Taxpayers use it to estimate their liability before filing.
Old Age Security recovery tax (clawback) for 2024.
2024 threshold: 90,997 CAD. Clawback is 15% of income above the threshold, capped at the OAS received. OAS fully repaid once net world income reaches roughly 148,065 (age 65 to 74) or 153,771 (age 75+).
Source: CRA OAS Recovery Tax 2024.
See how much of your Old Age Security pension is clawed back through the OAS Recovery Tax. Uses the 2025 threshold of $90,997 and the 15% recovery rate.
If your 2025 net income exceeds $90,997, the CRA claws back 15 cents of OAS for every dollar over that threshold. OAS is fully clawed back at $148,065 (ages 65-74) or $153,786 (75+). The 2025 max OAS is $727.67/month at 65, $800.44/month at 75+.
Old Age Security (OAS) is a federal pension paid to most Canadians 65 and older, funded out of general tax revenue (unlike CPP, which is contributory). For 2025, the maximum monthly amount is $727.67 for ages 65-74 and $800.44 for 75+. Unlike CPP, OAS is income-tested through the OAS Pension Recovery Tax, often called the "clawback".
The Recovery Tax kicks in when your net income exceeds the threshold ($90,997 in 2025) and claws back 15 cents of OAS for every dollar over. The threshold is indexed annually. Once your income reaches the upper limit ($148,065 for 65-74 or $153,786 for 75+), your entire OAS is clawed back. The recovery tax shows up either as monthly reductions in your OAS payments or as additional tax owing at filing.
Your minimum RRIF draw at 71+ might push you over the clawback threshold. Modeling helps you decide whether to draw less or invest non-registered to spread income.
Selling a second property or non-registered portfolio in a single year can spike your income and clawback OAS. Spread realizations over multiple years.
You can defer OAS up to age 70 for a 36% lifetime enhancement (0.6% per month). Worth doing if you expect high income in your late 60s and lower income in your 70s.
Splitting eligible pension income with a spouse can pull both incomes below the threshold. Run the numbers both with and without splitting.
Officially the OAS Pension Recovery Tax. The CRA reduces your OAS by 15 cents for every dollar of net income above the threshold ($90,997 in 2025).
$148,065 for ages 65-74, or $153,786 for 75 and over (2025 figures).
$727.67/month for ages 65-74, $800.44/month for 75+. Both rates indexed quarterly.
Service Canada reduces your monthly OAS based on your prior-year income. Any difference is reconciled at tax filing the following spring.
Strategies include: pension income splitting with a spouse, deferring OAS to 70, drawing more from a TFSA (does not count as income), spreading capital gains over years, RRSP contributions to lower net income.
No. TFSA withdrawals do not count toward net income for OAS purposes - one of the biggest advantages of TFSAs in retirement.
Yes. The threshold is indexed to inflation annually. $90,997 is the 2025 figure (was $86,912 in 2023).
OAS continues if you have 20+ years of Canadian residency after age 18. The clawback rules still apply, but Part XIII non-resident tax may also be deducted.