Canada OAS Clawback Calculator: Old Age Security Recovery Tax
Work out the Canadian OAS clawback — the Old Age Security 'recovery tax' that takes back 15% of net income above a yearly threshold — and how much of that above-threshold income you keep.
Adjust the inputs and select Calculate for a full breakdown.
Compare Common Scenarios
How the numbers shift across typical situations for this calculator:
| Scenario | OAS clawback | Income above threshold you keep |
|---|---|---|
| 15% of $20,000 above ($3,000) | 3,000 | 17,000 |
| 15% of $5,000 above | 750 | 4,250 |
| 15% of $50,000 above (likely full clawback) | 7,500 | 42,500 |
| 15% of $10,000 above | 1,500 | 8,500 |
How This Calculator Works
Subtract the OAS recovery-tax threshold from your net world income, enter the excess, and use the rate (15%). The calculator returns the clawback and the above-threshold income you keep. The clawback is collected by CRA either through monthly OAS reductions (based on prior-year income) or as a recovery-tax line on your return.
The Formula
Percentage of an Amount
Amount is the base value, Percentage is the rate applied to it
Worked Example
On $20,000 of net income above the threshold at 15%, the OAS clawback is $3,000 a year. OAS (Old Age Security) is Canada's universal-type pension paid to most seniors, but higher-income seniors lose part or all of it through the recovery tax: 15% of net world income above an annual threshold is taken back, with full clawback once income reaches a much higher upper limit. CRA usually deducts the estimated clawback monthly from your OAS, based on your prior-year income, and reconciles it on your return.
Key Insight
The OAS clawback is a key consideration in Canadian retirement-income planning, and a few details matter. The mechanics: it's a 'recovery tax' of 15% on net world income (line 23400) above an annual threshold set by CRA; income below the threshold attracts no clawback, and once income reaches a much higher upper limit, your entire OAS for the year is recovered. The base is net world income — which includes employment income, RRSP/RRIF withdrawals (a common driver of clawback), CPP, OAS itself, taxable investment income, capital gains and foreign pensions — so anything that lifts net income (like a large lump-sum RRIF draw, or realising big capital gains) can trigger or worsen the clawback. Collection is timing-shifted: based on your prior tax year's income, CRA reduces your monthly OAS by an estimated amount (the 'OAS recovery tax' deducted at source) for the next OAS period, then your tax return for the current year reconciles the actual figure. Planning techniques (not modelled here) include: smoothing income across years to stay below the threshold, splitting eligible pension income with a lower-income spouse, holding investments in TFSAs (TFSA withdrawals don't count as net income) and FHSAs/RRSPs (where deductions reduce net income), realising capital gains gradually, and timing RRIF withdrawals carefully. Note the OAS itself counts toward net income, which can compound the effect at the margin, and that the program is separate from CPP and the income-tested GIS top-up for low-income seniors. This calculator computes the 15% on the above-threshold income you enter and shows the rest of that excess; for your real recovery tax, use the current year's threshold, cap the clawback at the actual OAS you receive (it can't exceed your OAS), and remember the monthly deduction is based on the prior-year income with reconciliation at filing.
Frequently Asked Questions
How is the OAS clawback calculated?
It's 15% of net world income above the OAS recovery-tax threshold. On $20,000 of income above the threshold, the clawback is $3,000 a year. Income below the threshold isn't clawed back; once income reaches a much higher upper limit, your entire OAS is recovered.
What is the OAS recovery tax?
The official name for the OAS clawback — a 15% tax on net income above a CRA-set threshold that reduces or eliminates higher-income seniors' Old Age Security. It's collected by reducing the monthly OAS payment (based on prior-year income) and reconciled on the tax return.
What income counts toward the clawback?
Net world income (line 23400), which includes employment income, RRSP/RRIF withdrawals, CPP, OAS itself, taxable investment income, capital gains and foreign pensions. TFSA withdrawals are not counted, which is why TFSAs are valuable in retirement-income planning.
How can I reduce the clawback?
Common strategies include splitting eligible pension income with a lower-income spouse, smoothing income across years to stay below the threshold, holding investments in a TFSA (TFSA withdrawals don't count), realising capital gains gradually, and timing RRIF withdrawals so they don't bunch into a single high-income year.
Can the clawback be more than my OAS?
No — the clawback can't exceed the OAS you actually receive that year. Once your income is high enough that the full 15% clawback equals your OAS, all your OAS is recovered but no more is taken. This calculator gives the raw 15% on the above-threshold income; the real cap is your OAS amount.
Related Calculators
Methodology & Review
The clawback is 15% applied to net income above the OAS recovery-tax threshold (enter only the income above the threshold). It does not pick the year's threshold for you, cap the clawback at the OAS amount you actually receive, or model the full income test for GIS and other benefits.
Written by Ugo Candido · Last updated May 22, 2026.