Choose a section and follow the steps to understand your full OAS benefits 👇
If you’re getting close to retirement or planning ahead, it’s important to understand how much you can receive from Old Age Security. This article explains the current OAS payment amounts, how they’re calculated, and how your income and residency affect the final value.
Monthly OAS payment amount (January to March 2026)
The maximum monthly OAS payment amounts for the January to March 2026 quarter are:
- $742.31 for individuals aged 65 to 74
- $816.54 for individuals aged 75 and over
📌 Note: The 10% increase for seniors aged 75 and older is applied automatically the month after you turn 75. This adjustment does not impact your eligibility for the Guaranteed Income Supplement (GIS).
These amounts are reviewed every January, April, July, and October to reflect changes in the Consumer Price Index (CPI). Thanks to the “inflation shield” policy, if the cost of living decreases, your OAS payments will remain the same—they will never be reduced.
How residence duration affects the benefit
Your years of residence in Canada after age 18 directly affect your OAS amount. To receive the full pension, you must have lived in Canada for 40 years.
If you lived here for fewer years, your payment will be reduced proportionally — each year equals 1/40th of the full benefit.
👉 For example:
- 25 years = 62.5% of the maximum
- 20 years = 50%
Once you’re approved for a partial pension, it won’t increase if you continue to live in Canada.
Estimating your benefit: how to use official OAS calculators
To estimate your benefit based on your personal situation, use the official government tool:
👉 OAS Estimator Tool
It helps you calculate your monthly payment based on age, years of residence, and deferral period. It’s especially useful for comparing scenarios — such as taking your benefit at 65 versus delaying it.
Clawback explained: what it is, income thresholds, and how much gets reduced
If your net annual income exceeds a certain threshold, your OAS pension is reduced through the OAS recovery tax, commonly called the clawback.If your net annual income exceeds a certain threshold, your OAS pension is reduced through the OAS recovery tax, commonly called the clawback.
As of 2026, the clawback starts when your annual income reaches $95,323.
For every dollar above this threshold, your OAS is reduced by 15 cents.
If your income reaches approximately $151,668 (ages 65–74) or $157,490 (age 75+), your OAS is fully eliminated.
Examples of clawback amounts in different income scenarios
- $100,000 income → $4,677 over the limit = ~$701 clawback
- $120,000 income → $24,677 over the limit = ~$3,701 clawback
- $155,000 income → near or above full elimination threshold = little or no OAS payable
Clawback is calculated based on your previous year’s income and applied to OAS payments from July to June of the following year.o June.
OAS vs. CPP: how the programs differ and how they can work together
While both are public retirement benefits, they serve different purposes:
- OAS is based on age and residency — no work history required
- CPP is based on your contributions during your working years
📢 Important: You can receive both at the same time. Many Canadians rely on a combination of OAS and CPP to build their retirement income.
Benefit increases if you delay claiming past age 65
You can delay starting your OAS payments up to age 70, and for each month you wait, your payment increases by 0.6%, up to 36% total. Here are a few examples:
| Age | Increase | Monthly Amount |
|---|---|---|
| 65 | – | $740.09 |
| 66 | +7.2% | $793.38 |
| 68 | +21.6% | $899.95 |
| 70 | +36% | $1,006.52 |
⚠️ There’s no financial benefit in delaying beyond 70. Also, delaying OAS means you cannot receive GIS or Allowance during the deferral period.
Regional/top-up adjustments
There are no regional top-up payments built into OAS itself, but low-income seniors may qualify for non-taxable supplements such as:
- Guaranteed Income Supplement (GIS)
- Allowance
- Allowance for the Survivor
These programs are income-tested and only available to individuals living in Canada.
What happens to OAS if your income drops or rises
If your income increases above the clawback threshold, your OAS payments will be reduced or eliminated.
📌 If your income decreases — for example, due to retirement — you may be eligible for a higher benefit or to reinstate your OAS.
🚨 It’s important to notify Service Canada or request a reassessment if your income drops significantly.
Tax treatment: is OAS taxable income?
Yes, OAS payment amounts are considered taxable income and must be reported in your tax return.
Other related benefits — GIS, Allowance, and Allowance for the Survivor — are not taxable, though they still need to be declared.
Understanding OAS payment amounts — and how they’re influenced by your age, residency, income, and timing — is key to planning for retirement in Canada.
💡 Use the official estimator to run your own numbers and decide when and how to start receiving OAS based on your financial situation.
