The Government of Canada adjusts Old Age Security (OAS) monthly payouts quarterly to track inflation. Meanwhile, income limits for the OAS recovery tax—the “clawback”—are updated every year.

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Whether you are already collecting or planning ahead, here is a breakdown of the official 2026 payment thresholds, residency requirements, and ways to protect your pension.

1. 2026 Monthly OAS Payouts

Your baseline OAS monthly payment depends on your age. Seniors aged 75 and older receive a permanent 10% boost to help cover late-retirement costs.

Age Bracket	Maximum Monthly Payment (July–Sept 2026)	Approximate Annual Maximum
Ages 65 to 74	$751.97	~$9,024
Ages 75 and over	$827.17	~$9,926

The Deferral Bonus: If you don’t need the cash right at 65, you can delay your OAS up until age 70. For every month you delay, your payment increases by 0.6% (up to a 36% total permanent bump). At 2026 rates, waiting until 70 bumps a 65-year-old’s baseline past $1,022 a month.

2. The 2026 OAS Clawback Thresholds

OAS is meant for middle- to low-income seniors. If your net world income (Line 23600 on your tax return) passes a set limit, you trigger the OAS Recovery Tax. The CRA will claw back 15 cents for every dollar you earn over the minimum threshold.

Because the CRA determines your current checks using the prior year’s tax return, you have to watch two separate income timelines:

For Current Payments (July 2026 – June 2027)

Based on your 2025 tax return.

• Clawback Starts At: $93,454
• OAS Payout Hits Zero At:
  • Ages 65 to 74: $152,062
  • Ages 75 and over: $157,923

For Next Year’s Planning (2026 Tax Year)

The income you earn right now in 2026 determines your July 2027 – June 2028 checks.

• Clawback Starts At: $95,323
• OAS Payout Hits Zero At:
  • Ages 65 to 74: $154,753
  • Ages 75 and over: $160,696

3. Eligibility & The 40-Year Rule

Unlike CPP, OAS does not care about your employment history or whether you ever paid into a pension fund. It is strictly based on age and how long you have lived in Canada.

Living in Canada?

• You must be 65 or older.
• You must be a Canadian citizen or legal resident when your application is approved.
• You must have lived in Canada for at least 10 years after turning 18.

Living Abroad?

• You must be 65 or older.
• You were a Canadian citizen or legal resident the day before you left Canada.
• You lived in Canada for at least 20 years after turning 18.

The 40-Year Rule for Full Pension: To get the maximum payouts listed in the table above, you must have lived in Canada for 40 years after turning 18. If you have lived here for 20 years, you get a prorated amount ($20/40$, or exactly half) of the maximum benefit.

4. Insider Moves to Minimize Your Clawback

If RRIF withdrawals or investment gains are pushing you close to that $95,323 limit for 2026, use these tools to lower your net taxable income:

• Pension Income Splitting: You can allocate up to 50% of eligible pension income (like RRIF or corporate pension funds) to a lower-earning spouse to flatten both of your tax brackets.
• Lean on Your TFSA: TFSA withdrawals are entirely tax-free and completely invisible to the CRA. If you need extra cash for a major expense, pull it from a TFSA rather than an RRSP/RRIF to avoid spiking your net world income.
• Space Out Capital Gains: Selling property or stock? If possible, split the sale across late December and early January to split the capital gains across two separate tax years.