OAS clawback threshold 2027: confirmed figures and what is still pending

OAS clawback threshold 2027: current status

The OAS clawback threshold 2027 is not yet announced. Canada.ca's recovery tax page, checked on September 18, 2026, lists thresholds only up to the 2026 income year. The 2027 figure will be set once the inflation adjustment for 2027 is final.

Part of the confusion around "OAS clawback 2027" comes from the two different years involved. The threshold belongs to an income year, but the money is taken back during a recovery period that runs from July to the following June. So in 2027 you will actually feel two different thresholds, depending on the month.

In plain terms: OAS cheques in the first half of 2027 are trimmed using your 2025 income and the $93,454 line. From July 2027 the deductions switch to your 2026 income and the $95,323 line. The threshold that carries the 2027 label only drives deductions starting in July 2028.

The OAS recovery tax threshold 2026 and 2025

Both of these figures are official and published on the Canada.ca OAS recovery tax page. The 2025 threshold of $93,454 is the one used on 2025 returns filed in spring 2026. The OAS recovery tax threshold 2026 of $95,323 applies when you file your 2026 return in spring 2027.

The jump from $93,454 to $95,323 is almost exactly 2.0%. The earlier jump, from $90,997 to $93,454, was about 2.7%. Those increases track consumer price inflation rather than any policy decision.

How the calculation works on your return

Line 23500 of the return is where the repayment is worked out. The CRA starts from net income before adjustments (line 23400), removes any universal child care benefit and registered disability savings plan income (lines 11700 and 12500), and adds back any UCCB or RDSP repayments deducted on line 21300. If the result is above the threshold, 15% of the excess is owed, up to the full OAS you received.

How the OAS clawback threshold is indexed

The OAS clawback threshold is raised each year for inflation, so it never goes down. The 2027 number cannot be published until the inflation factor for 2027 is locked in, which normally happens in November when the CRA releases its annual indexation of tax amounts.

Because the threshold rises with prices, someone whose income only keeps pace with inflation should see little change in their clawback from year to year. A one-time spike, such as a large RRSP withdrawal or a capital gain on a cottage sale, is what usually pushes a retiree over the line.

Upper limits by age: when OAS disappears completely

The upper limit is the income at which the 15% repayment equals your whole OAS pension. It is higher for people 75 and over because their pension is 10% larger, so there is more to claw back before it reaches zero.

Canada.ca listed the 2026 upper limits as estimates from January to September, because they depend on the OAS rate, which is adjusted every quarter. The final figures, $155,320 and $161,320, were posted for October to December 2026.

Worked example with the 2025 threshold

Take a 68-year-old whose 2025 net income, for clawback purposes, was $110,000. The excess over $93,454 is $16,546. At 15%, the repayment is $2,481.90.

1. When the 2025 return is assessed, the $2,481.90 is charged on the return through lines 23500 and 42200, minus any recovery tax already withheld during 2025.
2. Service Canada then divides the expected repayment by 12 and holds back about $206.83 from each OAS payment from July 2026 to June 2027.
3. When the 2026 return is filed, the CRA compares 2026 income against the $95,323 threshold and settles any difference.

If your income has fallen, for example because you sold a business in one year only, you do not have to wait for the cycle to catch up. You can ask the CRA to reduce the deductions, and it will also review cases where the holdback causes financial hardship. Our OAS clawback guide covers the reduction request in detail.

What to watch for before the 2027 figure is published

• Check your 2026 income against $95,323 now. There are still a few months left in the year to time RRSP or RRIF withdrawals and capital gains.
• Remember that OAS itself is taxable and counts toward net income, as explained in is OAS taxable.
• Non-residents must file the Old Age Security Return of Income by April 30 or payments can be interrupted; see OAS outside Canada.
• Payment dates are not affected by the clawback; deductions come off the amounts paid on the dates listed on our OAS payment dates page.

We will add the official 2027 threshold to this page as soon as Canada.ca publishes it. Until then, treat any specific 2027 number you see elsewhere as an estimate.