CA 2028 OAS Clawback
CA 2028 OAS clawback: 15% above $93,500 net income (projected). Full clawback at $151,800. Strategy: convert RRSP early (60-71) to avoid post-71 OAS clawback hit.
| Net income | — |
| Clawback threshold | — |
| Full clawback at | — |
| 2028 clawback | — |
| Net OAS retained | — |
Canada 2028 OAS Recovery Tax (clawback) reduces OAS by 15c per $ of net income above $93,500 (projected). Full clawback at $151,800. Effective marginal rate in clawback band: regular tax + 15% extra = often 47%-65%. Strategic withdrawal sequencing pre-OAS reduces clawback impact.
Avoid Clawback Strategies
(1) Income split with spouse via pension splitting + spousal RRSP. (2) Convert RRSP to RRIF early (age 60-65) when not yet receiving OAS. (3) Defer OAS to age 70 — get 36% bonus + smaller clawback hit. (4) Use TFSA for non-taxable income source. (5) Time large gains (sale of business, RRSP conversion) before OAS start.
How Clawback Collected
Reported on T1 federal return. CRA collects via reduced OAS payments next July-June year (12-month lag). Single payment via T1 if circumstances change. Estate also subject if deceased retiree owed.
Threshold Indexation
OAS clawback threshold indexed to CPI annually. 2024 threshold $90,997. 2028 projected $93,500 with 0.7%/year average CPI. Real value erodes slowly — same nominal income hits more clawback every year.
Last updated May 2026. Sources: CRA OAS.