How the clawback works
If your 2026 net income is above $95,323, you repay 15% of the excess, up to the full OAS you received. Service Canada then withholds part of your monthly OAS from July 2027 to June 2028 based on this figure.
Ways to reduce it
- Split eligible pension income with a spouse.
- Draw down RRSP/RRIF before 65 or use a TFSA for extra income (TFSA withdrawals do not count).
- Defer OAS up to age 70 (+0.6% per month).
FAQ
At what income is OAS clawed back in 2026?
The recovery tax starts at $95,323 of 2026 net income.
How much OAS do I repay on $110,000?
$2,202 – 15% of the $14,677 above the threshold.
Sources (checked Nov 6, 2026): Government of Canada, OAS recovery tax; CRA 2026 indexed amounts; Service Canada OAS payment amounts (July–September 2026).