OAS Clawback 2027 Canada
CA OAS clawback 2027: 15% recovery tax on income over ~$93K (estimated, indexed). Full clawback ~$152K. Defer OAS to age 70 for higher base.
| Net income (line 23600) | — |
| Clawback threshold 2027 | — |
| OAS benefit annual | — |
| Recovery tax (clawback) | — |
| Net OAS received | — |
| Percent clawed back | — |
OAS (Old Age Security) Recovery Tax — the 'clawback' — reduces OAS benefits by 15% of every dollar of net income above ~$93 000 (2027 estimate, indexed annually). Full clawback by ~$152 000. Strategies exist to minimize: pension splitting, TFSA over RRIF, deferring OAS to age 70.
Clawback Mechanics 2027
If net income exceeds the threshold (estimated $93K for 2027), 15 cents of OAS clawed back per dollar of excess income. Full annual OAS ($8 550 est. 2027) fully recovered if net income exceeds $152K. Reported as additional tax on line 23500.
Minimization Strategies
Pension splitting (up to 50% of eligible pension income to lower-income spouse). Draw TFSA before RRIF to lower taxable income. Defer OAS to age 70 (36% higher base, may avoid clawback). Convert non-registered to TFSA over years.
Deferring OAS to 70
Each month deferred increases OAS by 0.6% (7.2% per year, max 36% at age 70). Useful if you expect higher income in early retirement years that would otherwise trigger clawback.
Last updated May 2026. Sources: Canada.ca OAS.