What is Old Age Security (OAS)? The 2026 Canadian guide
TL;DR
OAS is a monthly pension funded from general tax revenue and paid to almost every Canadian aged 65+ who meets residency rules. It is not based on work history. The 2026 maximum is roughly $742.31/month for ages 65–74 and is 10% higher for ages 75+. High-income seniors face a 15% clawback on income above ~$93,454, and OAS is fully eliminated above ~$151,668.
What OAS is
Old Age Security is the foundation of Canada's public retirement income system. Unlike the Canada Pension Plan, OAS is not tied to your work history or contributions. It is funded from general federal tax revenue and paid based on age and residency. Almost every Canadian senior who has lived in the country long enough qualifies.
OAS is the first pillar of Canada's retirement system; CPP is the second; private savings (RRSP, TFSA, FHSA, workplace pensions) are the third. For low-income seniors, OAS is topped up by the Guaranteed Income Supplement.
The 2026 numbers at a glance
- Maximum OAS at age 65–74: ~$742.31/month
- Maximum OAS at age 75+: ~$816.54/month (10% higher)
- Clawback start: Net income of ~$93,454 (verify quarterly with Service Canada)
- Clawback rate: 15% of every dollar above the threshold
- Full OAS clawback (age 65–74): ~$151,668 of net income
- Full OAS clawback (age 75+): ~$157,490 of net income
OAS amounts adjust quarterly (January, April, July, October) based on the Consumer Price Index. Always verify current amounts with Service Canada before relying on them.
Who qualifies
To receive OAS, you must:
- Be 65 or older
- Be a Canadian citizen or legal resident at the time your application is approved
- Have lived in Canada for at least 10 years after turning 18 (to collect inside Canada)
- Have lived in Canada for at least 20 years after 18 (to collect while living outside Canada)
OAS comes in two flavours: full and partial. The full pension requires 40 years of Canadian residency after age 18. The partial pension is paid to anyone with at least 10 years of residency, prorated at 1/40th per year. Someone with 25 years of residency would get 25/40 = 62.5% of the full amount.
The OAS clawback (Recovery Tax)
OAS was designed as a near-universal benefit, but high-income seniors are required to pay some or all of it back through the Recovery Tax. In 2026, the clawback kicks in at approximately $93,454 of net income and increases at 15 cents per dollar above the threshold. By the time net income reaches roughly $151,668 (age 65–74) or $157,490 (age 75+), the entire OAS pension is recovered.
Net income for clawback purposes is line 23400 on your tax return — your total income minus deductions like RRSP contributions and union dues, but before non-refundable tax credits. Common strategies for staying below the threshold include:
- Drawing down TFSAs (TFSA withdrawals are not income)
- Pension splitting with a lower-income spouse
- Pulling forward RRSP withdrawals in your 60s before OAS starts
- Deferring OAS to 70, by which time RRSPs may be drawn down
- Holding capital gains assets in non-registered accounts (only 50% is taxable)
When to start OAS
The default age is 65, but you can defer up to age 70 and receive a permanent 0.6% per-month increase — up to 36% more if deferred to 70. Unlike CPP, you cannot start OAS early.
Whether to defer depends on your other income, life expectancy, and clawback exposure. If you are likely to face the OAS clawback at 65 but expect lower income at 70, deferring can help you avoid losing OAS to the recovery tax during peak-income years.
The Guaranteed Income Supplement (GIS)
GIS is a non-taxable monthly top-up for low-income OAS recipients. It is income-tested — the more other income you have, the less GIS you receive. The maximum 2026 GIS for a single senior is roughly $1,108/month, on top of OAS.
Eligibility is based on prior-year income (excluding OAS itself and the first $5,000 of employment/self-employment income). For a single senior in 2026, GIS phases out around $22,000 of other income; for couples, the threshold is roughly $29,000–$53,000 depending on whether both partners receive OAS.
OAS vs CPP — what's the difference?
CPP is contributory — you pay in throughout your working life and get back what you earned. OAS is universal — you get it because you lived in Canada, regardless of work history. Most retirees collect both. We cover CPP in detail in our CPP guide.
Common OAS mistakes
- Assuming you will be auto-enrolled. Many seniors are, but not all. Check with Service Canada the year you turn 64.
- Triggering the clawback unintentionally. A large RRSP withdrawal or capital gain in a single year can wipe out OAS for that year.
- Not coordinating with a spouse. Pension splitting and timing of withdrawals can preserve significant OAS for a couple.
- Forgetting GIS exists. Low-income seniors often miss out by not applying.
- Defaulting to age 65. If you have other income sources and expect to live past 82, deferring to 70 is often the higher-return choice.
- Holding too much in RRSPs/RRIFs at age 71. Forced minimum withdrawals can permanently push you into clawback territory.
What changes in 2026
OAS amounts continue to be indexed quarterly to the Consumer Price Index. The 10% permanent increase for those aged 75+ remains in effect, as does the OAS clawback threshold's annual indexation. No major structural changes to OAS were announced in the 2026 federal budget.
Sources
Related calculators
- OAS payment dates 2026
- Income tax calculator — Estimate your taxable income
Related guides
Frequently asked questions
Editorial disclaimer
This guide is published by LoonieLabs Editorial for general information only. It is not financial, tax, legal, or investment advice and should not be relied on as such. Rules, limits, and dollar figures change. Always verify with the Canada Revenue Agency or a qualified professional before acting on anything you read here. Last reviewed: April 19, 2026.
Written and reviewed by Shrey Patel — Founder & Editor-in-Chief
Winnipeg, MB · Fact-checked by our Editorial reviewer · Last reviewed April 19, 2026 · LinkedIn
Founder of LoonieLabs · based in Winnipeg, MB · writes and reviews every page on the site I oversee every figure on this page personally — verified against primary sources (CRA, IRCC, Statistics Canada, the Bank of Canada, or the originating provincial ministry). LoonieLabs has no affiliate relationships with any bank, credit card, or immigration consultant featured on this site. Spotted a mistake? Tell us.
Published by the LoonieLabs Editorial Team.