- OAS is $762.50 a month for ages 65 to 74 and $838.75 from age 75 (October-December 2026).
- The recovery tax is 15% of net income above $95,323, and net income includes the OAS itself.
- Waiting until 70 raises the pension by 36%.
Old Age Security (OAS) is a monthly pension paid by the federal government to most Canadians aged 65 and over. Unlike CPP, you do not pay into it directly: it is funded from general tax revenue and depends on how long you have lived in Canada. High earners may have part or all of it taken back through the OAS recovery tax.
OAS amounts, October-December 2026
| Age | Monthly | Yearly |
|---|---|---|
| 65 to 74 | $762.50 | $9,150.00 |
| 75 and over | $838.75 | $10,065.00 |
Amounts are indexed to inflation every quarter. Check the current quarter on the Government of Canada OAS payments page.
Eligibility and partial pension
- You must be 65 or older and a Canadian citizen or legal resident when your pension starts.
- A full pension needs 40 years of residence in Canada after age 18.
- With at least 10 years you can get a partial pension of 1/40 for each year you have lived in Canada.
The OAS recovery tax ("clawback")
If your net income for the year is above $95,323, you repay 15% of the excess, up to the full amount of OAS you received. Net income here includes the OAS payments themselves. The CRA takes the repayment out of your payments in the following year, and you also pay tax on the OAS.
For someone aged 65 to 74 the pension is fully recovered at a net income of about $156,323, and about $162,423 for someone 75 or over. Examples, for a 66-year-old whose other income is:
| Income excluding OAS | OAS recovery tax per year | OAS kept per year |
|---|---|---|
| $100,000 | $2,074.05 | $7,075.95 |
| $130,000 | $6,574.05 | $2,575.95 |
| $160,000 | $9,150.00 | $0.00 |
Ways to reduce it
- Use your TFSA for withdrawals, since TFSA income does not count toward net income.
- Split eligible pension income with a spouse (from age 65 for RRIF income).
- Avoid taking large taxable lump sums in one year.
- Delay OAS if you are still working (next section).
Should you defer OAS?
Each month you wait past 65, up to 60 months, raises your pension by 0.6%, for a maximum of 36% at age 70. Using the 65 to 74 rate:
| Start OAS at | Monthly amount |
|---|---|
| 65 | $762.50 |
| 66 | $817.40 |
| 68 | $927.20 |
| 70 | $1,037.00 |
Deferral can help if you are in the recovery tax range at 65, expect to live well past 80, or have enough other income. It is less attractive if you need the cash now or your health suggests a shorter retirement. The months you defer are not paid back later; you receive a higher monthly amount instead.
What about GIS?
Lower-income seniors may also receive the Guaranteed Income Supplement (GIS), which depends on your income and marital status. Our calculator shows an estimate; Service Canada's calculator gives the official amount. Try the OAS calculator.
Estimate your OAS and clawback →
Frequently asked questions
Do I have to apply for OAS?
Many people are enrolled automatically from the age of 64 or 65. If you did not get a letter, apply through Service Canada.
Is OAS taxable?
Yes, and it counts toward net income for the recovery tax.
Can I get OAS if I live outside Canada?
Possibly. The rules depend on your years of residence, and a full pension abroad generally needs 20 years after age 18.
Does the OAS recovery tax apply every year?
Yes. It is based on each year's net income.