GIS clawback: which income reduces the Guaranteed Income Supplement

How the GIS clawback works

Unlike the OAS recovery tax, the GIS clawback is not a repayment on your tax return. It is built into the benefit itself: Service Canada takes your income from the previous year, applies the reduction, and sets your monthly GIS for July to June.

Federal program notes describe the gis clawback rate for the basic benefit as a reduction of $1 for every $2 of other income, a 50% rate. A separate top-up portion, added for the lowest-income seniors, is reduced faster over the first few thousand dollars. That is why the first dollars of CPP or pension income can cut GIS by more than half their value.

What counts as income for GIS

For couples, the income of both partners is combined. The GIS clawback threshold, the income at which GIS stops, depends on your situation. For October to December 2026 it is $23,112 for a single, widowed or divorced pensioner and $30,528 of combined income when both partners receive the full OAS.

Does OAS affect GIS?

Receiving OAS does not reduce GIS. The pension is excluded from the income count, so a single pensioner can collect the full $762.50 OAS and still get up to $1,138.90 of GIS in the same month, if other income is low enough.

Delaying OAS is a different matter. GIS is not paid at all while OAS is deferred, so a low-income senior who postpones OAS to 70 gives up five years of GIS. For most people who expect to qualify for GIS, taking OAS at 65 is the better choice. Our OAS before 65 page explains the start-age rules.

CPP and GIS

CPP is the income that most often trims GIS. Every CPP dollar counts, and because CPP arrives every month, it reduces GIS every year for life.

The 2026 average CPP retirement pension at 65 was $877.01 a month, or $10,524.12 a year. For a single pensioner with no other income, that amount alone uses up almost half of the $23,112 income limit. The GIS left over is still worth claiming, but it will be well below the $1,138.90 maximum.

Working while on GIS

Employment and self-employment income get special treatment. The first $5,000 of earnings is ignored completely. On earnings between $5,000 and $15,000, only half is counted. Anything above $15,000 counts in full.

In practice, a pensioner earning $9,000 from part-time work has $5,000 excluded and half of the remaining $4,000 excluded, so only $2,000 is counted toward the GIS test.

Worked example: a single pensioner

Take a single 70-year-old whose 2025 income was made up of the following:

• CPP retirement pension: $10,524
• RRIF withdrawal: $4,000
• Part-time job: $9,000
• OAS pension: excluded, whatever the amount

Countable income is $10,524 + $4,000 + $2,000 from the job, or $16,524. That is under the $23,112 limit, so this person keeps some GIS from July 2026 to June 2027. For the exact monthly figure, enter the same numbers in Service Canada's benefits estimator, which applies the full rate tables including the top-up.

Now suppose the same person had withdrawn $12,000 from the RRIF instead of $4,000. Countable income would reach $24,524, above the limit, and GIS would stop for the whole July to June period. Spreading withdrawals over several years usually costs far less GIS than one large withdrawal.

What to do if your income drops

Because GIS uses last year's income, a pensioner who stopped working or lost a pension can be stuck with a low GIS for months. You can ask Service Canada to use an estimate of your current-year income instead.

1. Get form ISP3026, the Statement of Income for the Renewal of the Guaranteed Income Supplement, the Allowance or the Allowance for the Survivor.
2. Report the income you expect for this year and note the reason for the drop, such as retirement or the end of a pension.
3. Send it to Service Canada, and keep proof of the change, such as a record of employment or a letter ending the pension, in case it is requested.
4. File your tax return by April 30 each year so the next July reassessment uses accurate figures.

Payments continue on the regular OAS payment dates. For the current maximums by household type, see GIS amount, and for survivors aged 60 to 64, see the Allowance for the Survivor. New to the program? Start with what GIS is.