This calculator estimates the OAS Recovery Tax (OAS clawback) amount.
Update the input values as required, then click Calculate to display the result.
Estimated OAS repayment amount: $0.00
To estimate the OAS Recovery Tax (OAS clawback) amount provide the following information:
Click Calculate to display the results. Provided values are estimates only. Consult the CRA Old Age Security (OAS) pension page or your tax advisor for an exact determination.
Please note that this calculator does not take into account any other taxes, credits, repayments, or benefits.
The OAS recovery tax, also known as OAS clawback, is a provision in the Old Age Security program that requires individuals with higher incomes to repay a portion of their OAS benefits through a recovery tax. The clawback is triggered when an individual's net income exceeds a certain threshold set annually by the government. For example, as shown in the table below, for the tax year 2022, the threshold is $81,761.
| Income year | Recovery tax period | OAS recovery threshold |
|---|---|---|
| 2021 | July 2022 to June 2023 | $79,845 |
| 2022 | July 2023 to June 2024 | $81,761 |
| 2023 | July 2024 to June 2025 | $86,912 |
| 2024 | July 2025 to June 2026 | $90,997 |
| 2025 | July 2026 to June 2027 | $93,454 |
The OAS clawback applies only to individuals who receive OAS payments and have a net income above the threshold. The amount of the clawback is equal to 15% of the amount by which the individual's net income exceeds the threshold up to the total amount of OAS pension and supplements received.
The individuals who are subject to the clawback for a given tax year will see a reduction in their monthly OAS payments during the corresponding recovery tax period starting on July 1st. The amount deducted each month will equal the repayment amount divided by 12, or the amount of monthly OAS benefit, whichever is less. This way, the recovery tax will be spread over 12 monthly pension payments instead of a lump sum at tax time. The amount deducted will be shown as "income tax deducted" in box 22 of T4A(OAS) slip, and will reduce the amount of tax payable next year.
For more information, including the full list of rules, check the official CRA Old Age Security (OAS) pension page on the Government of Canada web site.
See also:
OAS Pension, GIS, and Allowance Calculator
OAS Pension Deferral Calculator
Canada Pension Plan (CPP) Calculator
Climate Action Incentive Payment (CAIP) Calculator
TFSA Calculator
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