Old Age Security (OAS) is Canada's largest retirement program, paying out over $60 billion annually to seniors age 65 and older. Unlike CPP, OAS is funded from general tax revenue, not contributions. But with income-tested clawbacks and complex eligibility rules, many Canadians don't understand how much they'll actually receive.
OAS Payment Rates & Clawback Threshold (2026)
OAS payments are indexed quarterly to inflation. Here are the key numbers for 2026:
| Category | Amount | Details |
|---|---|---|
| Maximum Monthly Payment (Age 65-74) | $743.05 | Q2 2026 rate, with 40+ years residence |
| Maximum Monthly Payment (Age 75+) | $817.36 | 10% automatic increase at age 75 |
| Maximum Annual Payment (Age 65-74) | $8,916.60 | 12 months × $743.05 |
| Clawback Threshold (2026) | $95,323 | Recovery tax begins above this income |
| Clawback Rate | 15% | Of income over threshold |
| Full Clawback Income (Age 65-74) | ~$148,451 | OAS reduced to $0 at this income |
Residence Requirement for Full OAS
You need 40 years of residence in Canada after age 18 to receive the full OAS. If you have fewer years, your OAS is prorated. For example, 30 years = 75% of max OAS ($557.29/month in Q2 2026). You need at least 10 years of residence after age 18 to qualify for any OAS.
Calculate Your OAS Payment
Use our interactive calculator to estimate your OAS payment based on your income and years of residence in Canada.
OAS Payment Calculator
Calculate your estimated Old Age Security payment based on your income and years of residence in Canada.
All income sources (employment, RRSP, pension, etc.)
40 years required for full OAS
How it works: You need 40 years of residence in Canada after age 18 to receive the full OAS (100% based on your 40 years). Your income is below the clawback threshold, so you receive the full amount based on your residence eligibility.
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Real-World Examples
Let's look at three real scenarios to see how OAS works in practice:
Full OAS, No Clawback
Typical retiree with modest income
Scenario:
- •Robert, age 65: Retired teacher
- •Years in Canada: 42 years (born and raised)
- •Annual income: $55,000 (CPP: $15,000, Teacher's pension: $40,000)
Result: Robert receives the full OAS since he has 40+ years in Canada and his income ($55,000) is well below the clawback threshold ($95,323). This adds $8,916.60/year to his retirement income.
Partial OAS Due to Clawback
High income triggers recovery tax
Scenario:
- •Patricia, age 68: Still working part-time as consultant
- •Years in Canada: 45 years
- •Annual income: $115,323 (Consulting: $50,000, CPP: $16,000, RRIF: $49,323)
Clawback Calculation:
- Income over threshold ($95,323):$20,000
- Clawback rate:15%
- Annual clawback:$3,000
- Monthly clawback:$250
Result: Patricia's income exceeds the 2026 clawback threshold by $20,000, so she repays 15% × $20,000 = $3,000/year ($250/month). She still receives partial OAS, but her effective benefit is reduced.
Immigrant with Partial Residence
Prorated OAS based on years in Canada
Scenario:
- •Maria, age 65: Immigrated to Canada at age 38
- •Years in Canada: 27 years (after age 18)
- •Annual income: $32,000 (CPP: $8,000, Part-time: $24,000)
Eligibility Calculation:
- Years in Canada:27 years
- Full OAS requires:40 years
- Eligibility percentage:67.5%
- Max OAS for Q2 2026:$743.05
Result: Maria receives 67.5% of the full OAS because she has 27 of the 40 required years of residence. Her low income means no clawback, but she doesn't qualify for the full amount. If she had fewer than 10 years, she wouldn't qualify for any OAS.
Frequently Asked Questions
Frequently Asked Questions
Q:Can I get OAS if I lived abroad?
A:Yes, you can get partial OAS if you lived abroad. To receive OAS outside Canada, you need at least 20 years of residence in Canada after age 18. If you have fewer than 20 years, OAS payments stop after 6 months of living outside Canada. If you have 20+ years, you can receive OAS for life no matter where you live. The amount is prorated based on your years of Canadian residence (e.g., 30 years = 30/40 = 75% of max OAS, which would be $557.29/month in Q2 2026).
Q:What's the OAS clawback and how does it work?
A:The OAS clawback (officially called the 'OAS recovery tax') kicks in when your income exceeds $95,323 in 2026. You repay 15% of every dollar over this threshold. For example, if your income is $105,323, you're $10,000 over the threshold, so you repay 15% × $10,000 = $1,500/year ($125/month). Your OAS is reduced by this amount. At approximately $154,196 income (age 75+) or $148,451 (age 65-74), your entire OAS is clawed back to zero.
Q:Can I defer OAS to age 70 like CPP?
A:Yes, you can defer OAS from age 65 up to age 70. For every month you delay, your OAS increases by 0.6% (7.2% per year). If you defer the full 5 years (age 65 to 70), your OAS increases by 36%. This can be worth it if you're still working and would face the clawback, or if you want higher guaranteed income later. However, unlike CPP, the increase is smaller (36% vs 42% for CPP), so run the math based on your health and financial situation.
Q:What is GIS and who qualifies?
A:The Guaranteed Income Supplement (GIS) is additional money for low-income OAS recipients. It's available to Canadian residents age 65+ who receive OAS and have income below certain thresholds. For 2026, single seniors with income under approximately $22,512 qualify for some GIS (maximum $1,109.85/month for those with zero income other than OAS). GIS is not taxable and is based on your previous year's income tax return, so it adjusts annually. If your income increases, your GIS decreases or stops.
Q:When should I apply for OAS?
A:You should apply 6 months before you want your OAS to start (typically 6 months before turning 65). Service Canada will send you a letter when you turn 64 as a reminder. OAS is not automatic — you must apply (unlike CPP, which Service Canada will enroll you in automatically if you qualify). If you're automatically enrolled, you'll receive a letter confirming this. You can apply online through My Service Canada Account, by mail, or in person. OAS can be retroactive up to 12 months if you apply late.
Q:Does OAS count as income for taxes?
A:Yes, OAS is fully taxable income. It's added to your total income for the year and taxed at your marginal rate. However, OAS qualifies for pension income splitting if you're 65 or older — you can split up to 50% of your eligible pension income with your spouse to reduce your combined tax bill. Note: OAS itself is not eligible for the pension income splitting election (Form T1032), but other eligible pension income (RRIF, DB pension) can be split. OAS also qualifies for the $2,000 pension income tax credit if you have no other eligible pension income.
Question: Can I get OAS if I lived abroad?
Answer: Yes, you can get partial OAS if you lived abroad. To receive OAS outside Canada, you need at least 20 years of residence in Canada after age 18. If you have fewer than 20 years, OAS payments stop after 6 months of living outside Canada. If you have 20+ years, you can receive OAS for life no matter where you live. The amount is prorated based on your years of Canadian residence (e.g., 30 years = 30/40 = 75% of max OAS, which would be $557.29/month in Q2 2026).
Question: What's the OAS clawback and how does it work?
Answer: The OAS clawback (officially called the 'OAS recovery tax') kicks in when your income exceeds $95,323 in 2026. You repay 15% of every dollar over this threshold. For example, if your income is $105,323, you're $10,000 over the threshold, so you repay 15% × $10,000 = $1,500/year ($125/month). Your OAS is reduced by this amount. At approximately $154,196 income (age 75+) or $148,451 (age 65-74), your entire OAS is clawed back to zero.
Question: Can I defer OAS to age 70 like CPP?
Answer: Yes, you can defer OAS from age 65 up to age 70. For every month you delay, your OAS increases by 0.6% (7.2% per year). If you defer the full 5 years (age 65 to 70), your OAS increases by 36%. This can be worth it if you're still working and would face the clawback, or if you want higher guaranteed income later. However, unlike CPP, the increase is smaller (36% vs 42% for CPP), so run the math based on your health and financial situation.
Question: What is GIS and who qualifies?
Answer: The Guaranteed Income Supplement (GIS) is additional money for low-income OAS recipients. It's available to Canadian residents age 65+ who receive OAS and have income below certain thresholds. For 2026, single seniors with income under approximately $22,512 qualify for some GIS (maximum $1,109.85/month for those with zero income other than OAS). GIS is not taxable and is based on your previous year's income tax return, so it adjusts annually. If your income increases, your GIS decreases or stops.
Question: When should I apply for OAS?
Answer: You should apply 6 months before you want your OAS to start (typically 6 months before turning 65). Service Canada will send you a letter when you turn 64 as a reminder. OAS is not automatic — you must apply (unlike CPP, which Service Canada will enroll you in automatically if you qualify). If you're automatically enrolled, you'll receive a letter confirming this. You can apply online through My Service Canada Account, by mail, or in person. OAS can be retroactive up to 12 months if you apply late.
Question: Does OAS count as income for taxes?
Answer: Yes, OAS is fully taxable income. It's added to your total income for the year and taxed at your marginal rate. However, OAS qualifies for pension income splitting if you're 65 or older — you can split up to 50% of your eligible pension income with your spouse to reduce your combined tax bill. Note: OAS itself is not eligible for the pension income splitting election (Form T1032), but other eligible pension income (RRIF, DB pension) can be split. OAS also qualifies for the $2,000 pension income tax credit if you have no other eligible pension income.
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Related Canadian Money Guides
CPP: When to Start
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RRSP Withdrawal Tax
RRSP withdrawals count toward OAS clawback — learn how to minimize taxes and preserve your OAS.
RRIF Minimum Withdrawal
RRIF withdrawals affect OAS clawback — calculate your minimum and plan to keep more OAS.
Capital Gains Tax
Capital gains count toward OAS clawback — time your asset sales to preserve your OAS benefits.
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