OAS Clawback: Recovery Tax Thresholds, the 15% Rule and an Illustration
Reviewed 4 November 2026
Service Canada's recovery tax page says you must repay 15% of the amount by which your income is above the threshold for the year. It prints thresholds for three periods, including $95,323 for income year 2026 (July 2027 to June 2028). When we checked on November 4, 2026, all three rows were on the page.
“If your net world income exceeds the threshold amount ($93,454 for 2025), you have to repay part or your entire OAS pension.”
OAS recovery tax thresholds
| Recovery tax period | Income year | Minimum income recovery threshold | Maximum income recovery threshold, age 65 to 74 | Maximum income recovery threshold, age 75 and over |
|---|---|---|---|---|
| July 2025 to June 2026 | 2024 | $90,997 | $148,451 | $154,196 |
| July 2026 to June 2027 | 2025 | $93,454 | $152,062 | $157,923 |
| July 2027 to June 2028 | 2026 | $95,323 | $155,320 (footnote 1) | $161,320 (footnote 1) |
“From January to September of the current tax year, the amounts in this table are estimates based on maximum OAS pension amounts. From October to December, the amounts are final.”
The footnote is attached to the maximum thresholds of the income year 2026 row. When we checked on November 4, 2026, that date fell in October to December, the months for which the footnote says the amounts are final; that reading is ours, applied to the source page dated 2026-09-29.
How the 15% recovery works
Formula (from the canada.ca rule): repayment = 15% × (income − threshold), for income above the threshold.
“Your repayment calculation is based on the difference between your income and the threshold amount for the year. The first step is to figure out how much higher your income is than the threshold. You must repay 15% of that amount.”
Worked example from the page: income of $100,000 in 2025 against the $93,454 threshold is $6,546 above it, and 15% of that is $981.90, for the July 2026 to June 2027 period.
“You would have to repay $981.90 for the July 2026 to June 2027 period. Note: This calculation is presented for reference only and is not official. In order to calculate your true and accurate repayment amount, please refer to the Calculating OAS recovery tax chart in the T4155, Old Age Security Return of Income guide for Non-Residents.”
“The repayment amount is then divided monthly and deducted from your OAS pension payments as a recovery tax.”
Illustration of the formula
An illustration of the published formula: repayment = 15% × (income − threshold), stopping at the table's maximum income recovery threshold. It is not an assessment and not tax advice. The result can be more than the OAS you actually received (for example with a partial pension or a pension that started during the year): this illustration does not use the amount of OAS received.
Enter an income to see the illustration.
Who repays: the tax return and the Return of Income
The CRA's line 23500 page covers the tax return and the repayment calculation:
“You may have to repay all or part of your OAS pension (line 11300) or net federal supplements (line 14600) if the result of the following calculation is more than $93,454: line 23400, minus line 11700 and line 12500, plus line 21300 or repayment amount of RDSP income included on line 23200 (or both)”
Service Canada's recovery tax page describes the Old Age Security Return of Income for people who live outside Canada, and says:
“You must pay the recovery tax if: your annual net world income is more than $93,454 (for 2025, in Canadian dollars), and you live in a country where the non-resident tax on Canadian pensions is 25% or more.”
“If you live in a country where the non-resident tax on Canadian pensions is lower than 25%, you do not need to file an Old Age Security Return of Income form.”
“If you live outside Canada and receive an Old Age Security (OAS) pension, you must also pay the non-resident tax.”
The CRA page on the tax return also says:
“If your net income was more than the 2025 threshold and your 2026 net income is expected to be substantially lower, you can request a waiver from the CRA to have Service Canada reduce your income tax withheld at source beginning in July 2026.”
Next period
The recovery tax page prints the July 2027 to June 2028 period (income year 2026): minimum threshold $95,323, maximum thresholds $155,320 (age 65 to 74) and $161,320 (age 75 and over). Whether it adds periods later is not stated; when we checked on November 4, 2026 it printed no period after June 2028. OAS payment dates and amounts are on OAS payment dates 2026. CPP and EI figures are on CPP and EI maximums 2026, and all Canada pages are indexed on the Canada hub.
Frequently asked questions
What is the OAS clawback threshold?
Service Canada's Old Age Security pension recovery tax page on canada.ca (page dated 2026-09-29) prints a minimum income recovery threshold of $90,997 for income year 2024 (July 2025 to June 2026), $93,454 for income year 2025 (July 2026 to June 2027) and $95,323 for income year 2026 (July 2027 to June 2028).
How does the 15% OAS recovery tax work?
Service Canada's recovery tax page says: "Your repayment calculation is based on the difference between your income and the threshold amount for the year. The first step is to figure out how much higher your income is than the threshold. You must repay 15% of that amount." It then gives an example: income of $100,000 against the $93,454 threshold gives $6,546 more than the threshold, and 15% of that is $981.90 for the July 2026 to June 2027 period.
At what income is the OAS pension fully recovered?
Service Canada's recovery tax page prints a column headed Maximum income recovery threshold in its table: $152,062 (age 65 to 74) and $157,923 (age 75 and over) for the July 2026 to June 2027 period. Service Canada's page does not say in words what happens beyond that column; it says you have to repay part or your entire OAS pension.
Has the threshold for July 2027 to June 2028 been published?
Yes. When we checked on November 4, 2026, Service Canada's recovery tax page printed, for income year 2026 and the July 2027 to June 2028 period, a minimum threshold of $95,323 and maximum thresholds of $155,320 (age 65 to 74) and $161,320 (age 75 and over). Its footnote says: "From January to September of the current tax year, the amounts in this table are estimates based on maximum OAS pension amounts. From October to December, the amounts are final."
Can the OAS recovery tax be reduced at source?
The CRA's line 23500 page on canada.ca says: "If your net income was more than the 2025 threshold and your 2026 net income is expected to be substantially lower, you can request a waiver from the CRA to have Service Canada reduce your income tax withheld at source beginning in July 2026."
Who has to repay OAS, according to canada.ca?
Two canada.ca pages word it differently. The CRA's line 23500 page, which covers the tax return, says: "You may have to repay all or part of your OAS pension (line 11300) or net federal supplements (line 14600) if the result of the following calculation is more than $93,454: line 23400, minus line 11700 and line 12500, plus line 21300 or repayment amount of RDSP income included on line 23200 (or both)" Service Canada's recovery tax page describes the Old Age Security Return of Income for people who live outside Canada, and says: "You must pay the recovery tax if: your annual net world income is more than $93,454 (for 2025, in Canadian dollars), and you live in a country where the non-resident tax on Canadian pensions is 25% or more." It adds: "If you live in a country where the non-resident tax on Canadian pensions is lower than 25%, you do not need to file an Old Age Security Return of Income form." and "If you live outside Canada and receive an Old Age Security (OAS) pension, you must also pay the non-resident tax."
More Canada pages
Sources
All figures and dates come from canada.ca pages, fetched on 4 November 2026:
- Service Canada: Old Age Security pension recovery tax (page dated 2026-09-29)
- CRA: Line 23500, Social benefits repayment (page dated 2026-01-20)
- Service Canada: Old Age Security payment amounts (page dated 2026-09-29)
FedRateCalc is not affiliated with the Government of Canada, the Canada Revenue Agency or Service Canada. The canada.ca pages are the official reference. This page gives no financial or tax advice.