OAS Pension Canada - Eligibility, Clawback and
Everything you need to know about Old Age Security in Canada for 2026 including payment amounts, eligibility rules, the clawback threshold, and deferral.
Old Age Security (OAS) is a cornerstone of retirement income for Canadians. Unlike the Canada Pension Plan (CPP), OAS is not based on your work history or contributions. It is funded through general tax revenue and available to most Canadians aged 65 and older who meet residency requirements. Here is everything you need to know for 2026.
OAS Payment Amounts (2026)
| Age Group | Maximum Monthly (Q1 2026) | Annual Maximum |
|---|---|---|
| 65 to 74 | $727.67 | $8,732.04 |
| 75 and over | $800.44 | $9,605.28 |
OAS payments are adjusted quarterly for inflation based on the Consumer Price Index. The 10% increase for seniors 75 and over was made permanent starting in July 2022.
Eligibility Requirements
To receive OAS, you must meet the following criteria:
- Be 65 years of age or older
- Be a Canadian citizen or legal resident at the time of application approval
- Have resided in Canada for at least 10 years after turning 18 (if living in Canada when applying)
- Have resided in Canada for at least 20 years after turning 18 (if living outside Canada when applying)
Partial OAS
If you lived in Canada for between 10 and 40 years after age 18, you receive a partial pension. The amount is calculated as years of Canadian residence divided by 40, multiplied by the full OAS amount. For example, 25 years of residence equals 25/40 = 62.5% of the maximum payment.
The OAS Clawback (Recovery Tax)
The OAS clawback is officially called the OAS Recovery Tax. If your net income exceeds a threshold, you must repay part or all of your OAS. For the 2025 tax year (relevant for 2026 payments):
- Clawback threshold: $90,997
- Full repayment threshold: approximately $148,065
- Recovery rate: 15 cents for every dollar of income above the threshold
If your net income is $110,000, the clawback is ($110,000 - $90,997) x 15% = $2,850 per year or about $237.50 per month deducted from your OAS.
Income Sources That Count Toward the Clawback
Almost all income counts: employment income, CPP, pension income, RRSP/RRIF withdrawals, rental income, investment income, and capital gains. TFSA withdrawals do not count, making TFSAs an excellent vehicle for retirees concerned about the clawback.
Deferring OAS: Is It Worth It?
You can defer OAS by up to 60 months (5 years) past age 65. For each month of deferral, your payment increases by 0.6%, which works out to 7.2% per year and a maximum increase of 36% if you defer to age 70.
| Start Age | Monthly Increase | Monthly Amount (age 65-74 max base) |
|---|---|---|
| 65 | 0% | $727.67 |
| 66 | 7.2% | $780.08 |
| 67 | 14.4% | $832.49 |
| 68 | 21.6% | $884.91 |
| 69 | 28.8% | $937.32 |
| 70 | 36.0% | $989.63 |
When Deferral Makes Sense
- You are still working at 65 with high income that would trigger the clawback.
- You are in good health and expect to live past 80 (the break-even point is roughly age 81).
- You have other income sources to cover expenses between 65 and 70.
When to Start at 65
- You need the income immediately.
- You have health concerns that may shorten your life expectancy.
- Your income is below the clawback threshold.
GIS: The Guaranteed Income Supplement
Low-income seniors receiving OAS may also qualify for the Guaranteed Income Supplement (GIS). For single seniors, the maximum GIS is approximately $1,065 per month in 2026. GIS is income-tested and cannot be deferred.
Estimate your OAS payments and clawback with our OAS Calculator.