The number that matters most in an OAS clawback calculator is your income for the relevant tax year. For the July 2026 to June 2027 recovery period, the calculation uses 2025 income. The 2025 OAS recovery threshold is $93,454. Income above that amount is subject to a 15% recovery rate. Your recovery tax cannot exceed the OAS amount subject to repayment.
How to Calculate Your OAS Clawback
For the 2025 income year, use this formula:
(Income used for the OAS recovery calculation − $93,454) × 15%
If the result inside the brackets is zero or negative, the estimated recovery tax is $0.
For example, consider someone whose income for the calculation is $110,000:
$110,000 − $93,454 = $16,546
$16,546 × 15% = $2,481.90
The estimated OAS recovery tax is therefore $2,481.90 for the July 2026 to June 2027 recovery period.
For a Canadian resident filing a 2025 tax return, the income test is not simply salary or employment income. The federal tax calculation starts with net income before adjustments from line 23400, removes amounts reported on lines 11700 and 12500, then adds specified repayments reported on lines 21300 and 23200. Using the correct income figure is more important than adding every source of cash you received during the year.
When the Recovery Tax Reaches Your Full OAS Pension
The income level at which a standard OAS pension is fully recovered depends on age because people aged 75 and older receive a higher OAS pension.
For the July 2026 to June 2027 recovery period, the maximum income recovery levels are:
| Age | 2025 income at full recovery |
|---|---|
| 65 to 74 | $152,062 |
| 75 and older | $157,923 |
These figures are based on the standard maximum OAS pension. Your own full-recovery point can differ if you receive a partial pension or an amount affected by voluntary deferral. For that reason, a calculator should cap the estimated recovery at the OAS pension actually subject to repayment rather than assume everyone reaches zero at the table amount.
Our OAS calculator can be used separately when you need to estimate the pension itself rather than its recovery tax.
Converting the Annual Clawback Into a Monthly Estimate
Recovery tax can be withheld from subsequent monthly OAS payments instead of waiting for the entire amount to be dealt with at tax time. For a simple estimate of that withholding, divide the annual recovery amount by 12.
Using the $2,481.90 example above:
$2,481.90 ÷ 12 = $206.83
That works out to an estimated $206.83 per month. The actual amount withheld is determined from your tax information, and you receive an advisory letter showing the recovery-tax deductions from your OAS payments.
This timing is easy to overlook when using a calculator. A high-income year can affect payments in a later 12-month recovery period, so the income year entered into the calculator needs to match the payment period being estimated.
Which OAS Threshold Should You Use?
OAS recovery thresholds are indexed, so a calculator needs the threshold belonging to the income year rather than one permanent number.
| Recovery period | Income year | Minimum recovery threshold |
|---|---|---|
| July 2025 to June 2026 | 2024 | $90,997 |
| July 2026 to June 2027 | 2025 | $93,454 |
| July 2027 to June 2028 | 2026 | $95,323 |
The 2026 threshold of $95,323 therefore belongs to the recovery period beginning in July 2027. As of September 2026, the published full-recovery estimates for that period are $155,109 for ages 65 to 74 and $161,088 for age 75 and older, but those two upper figures remain estimates until finalized.
For the underlying rules rather than the calculator itself, our explanation of the OAS clawback covers how the recovery tax works.
Questions About Calculating the OAS Clawback
What happens if your income falls substantially after the year that triggered the clawback?
A person whose 2025 income exceeded the threshold but whose 2026 net income is expected to be substantially lower can request reduced recovery-tax withholding at source for the period beginning in July 2026. The request is made using Form T1213(OAS).
Does your spouse’s income go into your OAS clawback calculator?
No. The recovery calculation is based on the OAS recipient’s income rather than combined household or spousal income. This differs from income-tested benefits that use a couple’s combined income.
Can a non-resident use the same simple OAS clawback calculation?
Not in every case. Non-residents can face additional rules involving net world income, the Old Age Security Return of Income, non-resident withholding tax and Canada’s tax treaties. A basic Canadian-resident calculator should not be treated as a final non-resident recovery-tax calculation.
