Old Age Security (OAS) Calculator with Clawback (2026)
Last updated
Annual OAS net of the Recovery Tax (clawback). Models residency-based proportional payment (full at 40+ post-18 years), the +0.6%/month deferral bonus (max age 70), the 65-74 vs 75+ base difference, and the 15% clawback on net world income above the annual threshold.
Old Age Security is the federal government's near-universal monthly payment to Canadians aged 65 and older, funded out of general tax revenue (not contributions like CPP). Three things modify the amount you actually receive: residency years post-18 (full at 40), deferral bonus (+0.6% per month past 65, max 36% at age 70), and the Recovery Tax (15% clawback) on net world income above the year's threshold.
How this calculator works
Step 1 — Pre-clawback amount.
residency_factor = MIN(years_post_18, 40) / 40
deferral_factor = 1 + (start_age − 65) × 12 × 0.6%
monthly_before = base_amount × residency_factor × deferral_factor
annual_before = monthly_before × 12
Step 2 — Recovery Tax (clawback).
excess = MAX(0, net_world_income − clawback_threshold)
clawback = MIN(excess × 15%, annual_before)
annual_after = annual_before − clawback
2026 values (Service Canada Q2 2026): base 65–74 $743.05/mo, base 75+ $817.36/mo, clawback threshold $95,323, full clawback ceiling $154,708 (65–74) / $160,647 (75+).
Source: Service Canada — Old Age Security. Values live in data/contribution-limits-2026.json.
Worked example
A 67-year-old with 35 years of Canadian residency post-18, who started OAS at 65, with $80,000 of net world income. Residency factor = 35/40 = 87.5%. Deferral factor = 1.0 (started at 65). Monthly before = $743.05 × 0.875 × 1.0 = $650.17. Annual before = $7,802.04. Net world income $80K is below the $95,323 threshold → no clawback. Annual after = $7,802.04.
Frequently asked questions
Why is there a 65-74 amount and a separate 75+ amount?
Effective July 2022, the federal government added a 10% bump to OAS for everyone aged 75 and older. The 65-74 cohort receives the standard maximum monthly amount; the 75+ cohort receives a 10%-higher amount. Both are indexed quarterly. The clawback ceiling for the 75+ cohort is also slightly higher to reflect the higher base. The calculator switches between cohorts via the 'Current age band' dropdown.
What's net world income for the clawback?
Line 23400 of the T1 return — total worldwide income from all sources before the OAS Recovery Tax itself is deducted. Includes employment, pension (including OAS itself), investment, capital gains, and foreign income. The clawback rate is 15% on every dollar of line-23400 income above the year's threshold ($95,323 for 2026 income). At the upper ceiling ($154,708 for 65-74; $160,647 for 75+), the clawback equals 100% of the year's OAS — the recipient receives no net OAS for the year.
Is deferring OAS to age 70 worth it?
Mathematically, the deferral pays off if you live past roughly age 84 (break-even between 5 years of skipped payments and the 36% higher amount thereafter). For high-income retirees subject to the clawback, deferral can also be advantageous if income drops in later years. The decision depends on life expectancy, other retirement income, and tax situation — none of which this calculator models.
Sources
Every figure on this page traces back to a primary Canadian authority. See the complete sources index for the master list.
- Service Canada — CPP, OAS, EI Service Canada · last verified
Verified against Service Canada Q2 2026 OAS amounts and the published 2026 clawback thresholds on .
Important
This calculator is for informational purposes only. It is not financial, tax, mortgage, or legal advice. Tax rates, mortgage rules, and contribution limits change. Always verify current rules with the relevant Canadian authority and consult a licensed professional before making financial decisions.