Interactive calculator
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Interactive calculator
OAS is paid to most Canadians 65+ with at least 10 years of Canadian residency after age 18. Standard payment at 65 is $727.67 per month in 2026, increasing to $800.44 per month at age 75 due to the 10% enhancement introduced in 2022.
The OAS Recovery Tax claws back 15 cents for every dollar of net income above $90,997 in 2026. OAS is fully eliminated at approximately $152,177. TFSA withdrawals do not count as income and do not trigger the clawback, making TFSA especially valuable for high-income retirees.
Deferring OAS earns 0.6% extra per month or 7.2% per year. Full 5-year deferral to age 70 increases OAS by 36%, from $727.67 to $989.63 per month. Break-even is approximately age 80 to 81. For healthy seniors whose income already exceeds the clawback threshold at 65, deferring OAS eliminates clawback while building toward a higher permanent benefit.
Canadian financial planning requires understanding the federal and provincial tax systems together. Provincial income tax rates vary significantly across Canada from Alberta with a flat 10% rate to Nova Scotia with rates above 17% for middle incomes. Choosing where to live can change your after-tax income by several thousand dollars annually. The registered account system forms the core of Canadian tax efficiency with TFSA for flexibility, RRSP for high earners deferring tax to lower-bracket retirement years, FHSA for first-time home buyers combining the deduction of RRSP with the tax-free withdrawal of TFSA, RESP for education savings with the 20% Canada Education Savings Grant on first $2,500 per year per child, and RDSP for people with disabilities receiving the Canada Disability Savings Grant and Bond.
Canadian retirement income planning must coordinate Canada Pension Plan, Old Age Security, RRIF minimum withdrawals, and any employer pension income to manage marginal tax brackets and avoid OAS clawback. The OAS clawback begins at $90,997 of net income in 2026. TFSA withdrawals do not count as net income and do not trigger the clawback, making TFSA the most powerful tool for managing income in years when other sources push you near the threshold. RRSP meltdown strategy involves drawing down RRSP in lower-income early retirement years before CPP at 70, OAS, and mandatory RRIF minimums all combine to create peak retirement income and highest tax rates.
TFSA annual limit: $7,000, cumulative $109,000 from 2009. RRSP annual limit: 18% of prior year earned income to maximum $32,490. FHSA annual limit: $8,000, lifetime maximum $40,000. Canada Pension Plan Year Maximum Pensionable Earnings: $71,300. Employment Insurance maximum insurable earnings: $65,700. Federal Basic Personal Amount: approximately $16,129. OAS clawback threshold: $90,997. CPP maximum monthly pension at 65: approximately $1,365. OAS monthly payment at 65: approximately $728. These amounts adjust annually for inflation and wage growth. Canadian financial planning rewards consistent use of registered accounts and tax-efficient strategies. Review your contribution room annually, optimize your account mix based on your current and expected retirement marginal tax rates, and consider professional advice from a fee-only Certified Financial Planner when making major decisions involving significant amounts. CalcPhi calculators use the latest 2026 CRA rates and are updated annually to reflect changes in federal and provincial tax legislation, contribution limits, and benefit thresholds.