Enter your projected retirement income sources to see whether you're at risk of the OAS recovery tax — and how much of your Old Age Security you may lose. Results update instantly as you type.
Your Projected Annual Retirement Income
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NO CLAWBACK RISK
Enter your income above
Fill in your projected income sources to see your OAS clawback exposure.
Total Net Income
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OAS Clawed Back
$0
OAS You Keep
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Clawback threshold: $90,9970% of threshold
The OAS recovery tax begins at $90,997 of net income in 2025.
Your Personalized Insight
Enter your income sources above to see your personalized OAS clawback analysis.
General estimates based on 2025 CRA thresholds — not personalized financial advice. Actual clawback depends on your full tax situation. Consult a CFP® for guidance specific to your circumstances.
How OAS Clawback Works
The OAS recovery tax — commonly called the clawback — reduces your Old Age Security pension when your net income exceeds a federal threshold. In 2025, the clawback begins at net income of $90,997. For every dollar above that threshold, 15 cents of OAS is clawed back. OAS is fully eliminated at approximately $148,451.
The clawback is assessed on your personal tax return and can also be withheld from your monthly OAS payments throughout the year if CRA estimates you will owe it. RRIF minimum withdrawals are one of the most common triggers — particularly as mandatory withdrawal amounts grow larger in your late 70s and 80s.
Note that OAS income itself is included in net income and therefore counts toward the clawback calculation. TFSA withdrawals, however, are not taxable income and do not affect the threshold.
Strategies to Reduce or Avoid OAS Clawback
1
Draw from your TFSA instead of your RRIF
TFSA withdrawals are not taxable income and do not affect your OAS clawback threshold. If your RRIF income is pushing you above $90,997, shifting withdrawals to your TFSA can preserve some or all of your OAS.
2
Use pension income splitting with your spouse
Transferring up to 50% of eligible pension income to a lower-income spouse via Form T1032 can bring your net income below the clawback threshold — potentially saving thousands of dollars in OAS annually.
3
Melt down your RRSP before age 71
Taking voluntary RRSP withdrawals before converting to a RRIF at 71 reduces the future RRIF balance — and therefore future mandatory withdrawals. Drawing at lower tax brackets now can prevent larger clawback-triggering withdrawals later.
4
Defer OAS to age 70
If your income is high in your mid-60s and expected to decrease later, deferring OAS reduces clawback exposure during high-income years and increases your eventual monthly benefit by up to 36%.
5
Coordinate CPP timing with your income plan
Taking CPP earlier adds taxable income that counts toward the clawback threshold. For high-income retirees, deferring CPP while drawing down RRSP first can smooth income across years and reduce peak clawback exposure.
Frequently Asked Questions
At what income does OAS clawback start in 2025?
The OAS recovery tax begins at net income of $90,997 in 2025. Above this threshold, 15 cents of OAS is clawed back for every additional dollar of net income.
At what income is OAS fully eliminated?
OAS is fully clawed back at approximately $148,451 for Canadians aged 65 to 74 in 2025. For those aged 75 and older who receive the 10% OAS increase, full elimination occurs at a slightly higher income level.
Do TFSA withdrawals count toward the OAS clawback threshold?
No. TFSA withdrawals are not taxable income and are not included in net income. Drawing from your TFSA instead of your RRIF is one of the most effective ways to keep income below the clawback threshold.
Does OAS income itself count toward the clawback?
Yes. OAS is taxable income and is included in your net income calculation. This means your OAS payments themselves contribute to whether and how much clawback you face.
Can I avoid clawback if I have a large DB pension?
It depends on the pension amount. DB pension income counts as taxable income and directly affects your clawback exposure. Pension income splitting with a spouse is one of the most effective tools for reducing net income when you have a significant pension.
Is the clawback threshold the same every year?
No. CRA adjusts the clawback threshold annually to account for inflation. The 2025 threshold is $90,997. Check CRA's website each year for the current threshold.