OAS Clawback Thresholds

How to read these thresholds

OAS recovery tax may arise only when the income used for the recovery calculation exceeds the minimum threshold. The page also shows upper income thresholds by age group. These published reference figures are based on maximum OAS pension amounts: they are income levels, not benefit amounts or thresholds calculated for your personal circumstances. The amount that may be recovered also depends on the annual benefit amount included in the calculation. The OAS Clawback Calculator caps its estimated recovery at the annual benefit amount entered.

How do the income year and recovery period differ?

The income year identifies the year to which the income used in the calculation relates. That year’s income generally determines OAS recovery-tax deductions from July of the following year to June of the year after that. The recovery period is not that income year’s tax-payment deadline. Withheld tax is reported on the return for the year in which it was deducted.

For OAS recipients living in Canada, ordinary income tax is not automatically deducted from monthly OAS payments, but recipients can request deductions. OAS recovery tax has a separate withholding arrangement. Different rules may apply to non-residents or people who are Canadian tax residents for only part of a year. For help interpreting an estimate, see the OAS Clawback Calculator Guide.