CPP/OAS Clawback Calculator 2026

The Old Age Security (OAS) recovery tax, commonly called the 'clawback', requires higher‑income seniors to repay part or all of their OAS pension when their net income exceeds a certain threshold. For 2026, the threshold is projected to be around $90,997. For every dollar of income above this limit, 15% is repaid to the government, effectively reducing or eliminating the OAS benefit. This calculator helps you estimate your clawback and plan ahead.

The CRA uses your 'net income before adjustments' (line 23400 of your tax return) to determine OAS eligibility. It includes CPP payments, pension income, RRSP/RRIF withdrawals, employment income, net investment income, and taxable capital gains. Notably, OAS benefits themselves are not included in this income for clawback purposes. Understanding what counts helps you manage your income sources to stay below the threshold.

You can reduce the clawback by timing RRSP/RRIF withdrawals, using pension income splitting with a lower‑income spouse, delaying CPP and OAS to lower early‑retirement income, or maximizing TFSA withdrawals (which are tax‑free and don't count toward net income). This calculator lets you test different withdrawal amounts to see exactly how they affect your OAS.

Up to 50% of eligible pension income can be allocated to a spouse or common‑law partner. This can lower your net income and potentially keep you below the OAS threshold. The calculator doesn't automatically split, but you can manually adjust your income inputs to see the impact of a hypothetical split.