OAS Clawback 2025 | Thresholds and Calculations

The OAS clawback is a reduction in your monthly payments if your income exceeds a specific OAS threshold. It was introduced to ensure that eligible individuals gets Old Age Security benefits. Use the OAS calculator to calculate the clawback in 2025.

How Does the Clawback Work?

The clawback is calculated based on your net world income. This income includes all Canadian income and foreign sources. The government uses your OAS tax return from the previous year to determine how much to deduct.

Example of Calculating Your OAS Clawback

Let’s say you’re 68 years old with an annual income of $120,000 in 2024. Your excess income would be:
120,000−93,454 = 26,546

The clawback amount would be:

26,546×0.15 = $3,981.90

Your annual OAS payment would then be reduced by this amount.

Monthly OAS Reduction Calculation

If your annual OAS entitlement is $8,000 and you owe a clawback of $3,981.90 : Your adjusted annual payment would be:

8,000−3,981.90 = $4,018.10

Monthly payments would be reduced to approximately: 4,018.10÷12 = $334.84

If your income exceeds $151,668 (or $157,490 for those aged 75+), you won’t receive any OAS payments during that period.

OAS Clawback 2025 Date

The Clawback date for Old Age Security OAS would be implemented in July 2025 and continue until June 2026.

Pro TIP : It is better to manage your income if it exceeds the OAS income threshold to avoid the effects of clawback.

The Clawback rule that will be implemented in July 2025 will continue through June 2026.

Income Threshold For Clawback

The government adjusts these income thresholds annually to account for inflation. For 2025, the thresholds are as follows:

Age Group	Minimum Threshold	Maximum Threshold
Ages 65–74	$93,454	$151,668
Ages 75 and older	$93,454	$157,490

Note: The maximum to avoid clawback is $93,454. The clawback will be implemented on your benefits payments if your income exceeds the maximum amount.

Only a part of OAS benefits will be Clawback if your income is between $93,454 and $151,668 (or $157,490 for those aged 75+)
In case your income exceeds the maximum threshold, all of your OAS benefits will be withheld.

Bar chart showing ODSP clawback income thresholds by age. Ages 65–74: $93,454 minimum, $151,668 maximum. Ages 75+: $93,454 minimum, $157,490 maximum.

Income Included In OAS Clawback

Here is the list of incomes that are included in the OAS clawback:

Employment income
Pension income (CPP, private pensions, foreign pensions
Investment income (dividends, interest, capital gains)
Rental income
RRSP and RRIF withdrawals
Business income
Foreign Income

Note: TFSA Withdrawals, Lottery Winnings, Gifts, Inheritance Life Insurance Proceeds Principal Residence Sale Gains, GST/HST Credits, Canada Child Benefit (CCB), and Income Tax Refunds are not included in clawback

How To Avoid Clawbacks Of Old Age Security

Here are some practical tips to avoid clawbacks in 2025

Split Pension Income: Share income with a lower-income spouse.
Withdraw from TFSA: TFSA withdrawals aren’t taxed or counted as income.
Delay OAS: Postpone OAS to age 70 for higher payments.
Manage RRIF Withdrawals: Withdraw strategically to reduce taxable income.
Smooth Income: Spread income over multiple years to stay below the threshold.
Consult a Planner: Get expert advice for tax-efficient strategies.

If you have the threat that your income will cross thresholds, follow the above precautions to avoid clawbacks.

Conclusion

The Old Age Security (OAS) clawback is applied to your OAS benefits if your income exceeds the maximum income threshold. Therefore, it is important to take precautions to avoid the clawback.