Use TFSA withdrawals for spending
TFSA withdrawals do not enter net income for OAS recovery. Replacing discretionary taxable withdrawals with TFSA money can help, if funds are available. RRIF/LIF minimum payments must still be taken.
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OAS Clawback Predictor
Project income with annual growth, identify the first year OAS recovery could begin, and explore ways to preserve more of your benefits.
2026 income threshold: $95,323. Recovery is 15% of excess income, capped at your OAS. Future thresholds and tax amounts are estimates, not announced limits.
Your income assumptions
One person’s income, not household income. All annual amounts are CAD.
First-year ordinary taxable cash income: CPP, pensions, registered withdrawals and interest. Exclude OAS and TFSA withdrawals. Assume this income continues throughout the projection.
A subset, not additional income. Enter employer lifetime pension income and other amounts eligible for the federal pension credit. Exclude CPP, OAS and ordinary RRSP withdrawals. Use 0 if none qualifies.
Your own entitlement before deferral, recovery tax and the age-75 increase. The $9,000 default is illustrative, not an official maximum.
Income grows from the first projection year. OAS and recovery thresholds grow from the published 2026 baseline. Tax brackets use the app’s separate 2% future-indexing assumptions, with provincial exceptions.
First projected clawback
2028 · age 67
First full OAS recovery
None in this projection
Total projected OAS recovered
$93,302.45
Net monthly income in 2056
$13,744.17
In 2028, projected net income before recovery reaches $99,540.10, exceeding the $99,174.00 threshold by $366.10.
Estimated recovery: $54.92 for that income year. Keeping net income at or below the threshold would preserve that OAS, if an eligible income-reduction strategy is available.
Net monthly income is annual ordinary cash income plus OAS, less estimated income tax and OAS recovery, divided by 12; it is not a forecast of monthly cheque withholding. Totals are nominal, undiscounted dollars.
Income versus the recovery threshold
Recovery begins only when income exceeds the threshold and OAS is payable. Future thresholds are projections, not announced limits.
- Net income before recovery
- Recovery threshold
- Estimated income after tax + recovery
Compare taxable withdrawals with TFSA withdrawals
Replace part of the taxable withdrawals already included in your income with the same amount from your TFSA. This preserves pre-tax cash funding while reducing the income used for OAS recovery. Simply adding a TFSA withdrawal without reducing taxable income does not reduce clawback.
Starts in 2026 and grows at your selected annual income growth rate of 3%. Use 0 to compare identical projections.
A subset of the replacement, not extra income. Usually 0 for ordinary RRSP withdrawals; include qualifying discretionary RRIF/LIF withdrawals so pension credits are recalculated correctly.
Only replace withdrawals you can actually avoid. CPP, OAS, employer pension payments and mandatory RRIF/LIF minimums cannot simply be replaced. This hypothetical comparison assumes sufficient TFSA funds every year; it does not track balances, contribution room, investment returns or the later tax cost of leaving registered funds invested.
Projected OAS preserved
$61,339.10
Additional after-tax cash over the projection
$216,855.98
| Measure | Original projection | With TFSA replacement |
|---|---|---|
| First clawback income year | 2028 · age 67 | 2040 · age 79 |
| Total OAS clawback | $93,302.45 | $31,963.35 |
| Total ordinary income tax | $1,004,942.20 | $849,425.32 |
| Total after-tax cash available | $3,561,684.71 | $3,778,540.69 |
| TFSA withdrawals required | $0.00 | $500,026.78 |
View annual TFSA comparison
| Year / age | Original clawback | Clawback with TFSA | OAS preserved | TFSA withdrawal | Original after-tax cash | After-tax cash with TFSA |
|---|---|---|---|---|---|---|
| 2026 / 65 | $0.00 | $0.00 | $0.00 | $10,000.00 | $75,012.64 | $78,229.23 |
| 2027 / 66 | $0.00 | $0.00 | $0.00 | $10,300.00 | $77,102.44 | $80,409.43 |
| 2028 / 67 | $54.92 | $0.00 | $54.92 | $10,609.00 | $79,213.94 | $82,651.39 |
| 2029 / 68 | $191.20 | $0.00 | $191.20 | $10,927.27 | $81,322.01 | $84,956.93 |
| 2030 / 69 | $334.37 | $0.00 | $334.37 | $11,255.09 | $83,482.30 | $87,327.87 |
| 2031 / 70 | $484.65 | $0.00 | $484.65 | $11,592.74 | $85,701.41 | $89,766.09 |
| 2032 / 71 | $642.14 | $0.00 | $642.14 | $11,940.52 | $87,979.71 | $92,272.42 |
| 2033 / 72 | $807.22 | $0.00 | $807.22 | $12,298.74 | $90,319.26 | $94,849.06 |
| 2034 / 73 | $980.16 | $0.00 | $980.16 | $12,667.70 | $92,722.93 | $97,504.30 |
| 2035 / 74 | $1,161.23 | $0.00 | $1,161.23 | $13,047.73 | $95,192.21 | $100,236.86 |
| 2036 / 75 | $1,515.44 | $0.00 | $1,515.44 | $13,439.16 | $98,348.53 | $103,796.13 |
| 2037 / 76 | $1,717.09 | $0.00 | $1,717.09 | $13,842.34 | $100,967.41 | $106,701.71 |
| 2038 / 77 | $1,927.84 | $0.00 | $1,927.84 | $14,257.61 | $103,658.12 | $109,690.09 |
| 2039 / 78 | $2,148.31 | $0.00 | $2,148.31 | $14,685.34 | $106,422.29 | $112,763.69 |
| 2040 / 79 | $2,378.39 | $109.51 | $2,268.88 | $15,125.90 | $109,262.60 | $115,848.87 |
| 2041 / 80 | $2,618.90 | $281.95 | $2,336.95 | $15,579.67 | $112,180.48 | $118,964.33 |
| 2042 / 81 | $2,869.89 | $462.83 | $2,407.06 | $16,047.06 | $115,178.84 | $122,166.22 |
| 2043 / 82 | $3,131.92 | $652.64 | $2,479.27 | $16,528.48 | $118,242.91 | $125,456.49 |
| 2044 / 83 | $3,405.22 | $851.57 | $2,553.65 | $17,024.33 | $121,353.93 | $128,837.80 |
| 2045 / 84 | $3,690.37 | $1,060.11 | $2,630.26 | $17,535.06 | $124,550.35 | $132,312.64 |
| 2046 / 85 | $3,987.80 | $1,278.63 | $2,709.17 | $18,061.11 | $127,834.49 | $135,883.53 |
| 2047 / 86 | $4,297.82 | $1,507.38 | $2,790.44 | $18,602.95 | $131,203.35 | $139,553.59 |
| 2048 / 87 | $4,621.05 | $1,746.89 | $2,874.16 | $19,161.03 | $134,600.22 | $143,325.43 |
| 2049 / 88 | $4,957.67 | $1,997.29 | $2,960.38 | $19,735.87 | $138,089.82 | $147,201.74 |
| 2050 / 89 | $5,308.50 | $2,259.31 | $3,049.19 | $20,327.94 | $141,673.93 | $151,185.84 |
| 2051 / 90 | $5,673.92 | $2,533.25 | $3,140.67 | $20,937.78 | $145,356.02 | $155,280.51 |
| 2052 / 91 | $6,054.31 | $2,819.43 | $3,234.89 | $21,565.91 | $149,138.14 | $159,489.06 |
| 2053 / 92 | $6,450.26 | $3,118.33 | $3,331.93 | $22,212.89 | $153,023.61 | $163,814.79 |
| 2054 / 93 | $6,862.50 | $3,430.61 | $3,431.89 | $22,879.28 | $156,806.29 | $168,260.60 |
| 2055 / 94 | $7,291.49 | $3,756.64 | $3,534.85 | $23,565.66 | $160,814.44 | $172,830.38 |
| 2056 / 95 | $7,737.87 | $4,096.97 | $3,640.89 | $24,272.62 | $164,930.07 | $176,973.67 |
The original forecast below remains unchanged. The comparison recalculates OAS recovery and ordinary income tax, including any pension-credit reduction; TFSA withdrawals are then added back only to spendable cash. Additional after-tax cash includes both ordinary-tax and recovery effects, which interact because OAS recovery is deductible.
Year-by-year clawback forecast
| Income year / age | Status | Net income before recovery | Recovery threshold | Room / excess | Gross OAS | OAS recovered | OAS kept | Income tax, excluding recovery | Net income after tax + recovery |
|---|---|---|---|---|---|---|---|---|---|
| 2026 / 65 | No clawback | $94,000.00 | $95,323.00 | $1,323.00 | $9,000.00 | $0.00 | $9,000.00 | $18,987.36 | $75,012.64 |
| 2027 / 66 | No clawback | $96,730.00 | $97,229.00 | $499.00 | $9,180.00 | $0.00 | $9,180.00 | $19,627.56 | $77,102.44 |
| 2028 / 67 | Partial clawback | $99,540.10 | $99,174.00 | -$366.10 | $9,363.60 | $54.92 | $9,308.69 | $20,271.24 | $79,213.94 |
| 2029 / 68 | Partial clawback | $102,432.67 | $101,158.00 | -$1,274.67 | $9,550.87 | $191.20 | $9,359.67 | $20,919.45 | $81,322.01 |
| 2030 / 69 | Partial clawback | $105,410.14 | $103,181.00 | -$2,229.14 | $9,741.89 | $334.37 | $9,407.52 | $21,593.47 | $83,482.30 |
| 2031 / 70 | Partial clawback | $108,475.02 | $105,244.00 | -$3,231.02 | $9,936.73 | $484.65 | $9,452.07 | $22,288.96 | $85,701.41 |
| 2032 / 71 | Partial clawback | $111,629.91 | $107,349.00 | -$4,280.91 | $10,135.46 | $642.14 | $9,493.33 | $23,008.06 | $87,979.71 |
| 2033 / 72 | Partial clawback | $114,877.45 | $109,496.00 | -$5,381.45 | $10,338.17 | $807.22 | $9,530.95 | $23,750.97 | $90,319.26 |
| 2034 / 73 | Partial clawback | $118,220.39 | $111,686.00 | -$6,534.39 | $10,544.93 | $980.16 | $9,564.78 | $24,517.30 | $92,722.93 |
| 2035 / 74 | Partial clawback | $121,661.55 | $113,920.00 | -$7,741.55 | $10,755.83 | $1,161.23 | $9,594.60 | $25,308.11 | $95,192.21 |
| 2036 / 75 | Partial clawback | $126,300.94 | $116,198.00 | -$10,102.94 | $12,068.04 | $1,515.44 | $10,552.60 | $26,436.96 | $98,348.53 |
| 2037 / 76 | Partial clawback | $129,969.28 | $118,522.00 | -$11,447.28 | $12,309.41 | $1,717.09 | $10,592.31 | $27,284.78 | $100,967.41 |
| 2038 / 77 | Partial clawback | $133,745.27 | $120,893.00 | -$12,852.27 | $12,555.59 | $1,927.84 | $10,627.75 | $28,159.31 | $103,658.12 |
| 2039 / 78 | Partial clawback | $137,632.07 | $123,310.00 | -$14,322.07 | $12,806.71 | $2,148.31 | $10,658.39 | $29,061.47 | $106,422.29 |
| 2040 / 79 | Partial clawback | $141,632.97 | $125,777.00 | -$15,855.97 | $13,062.84 | $2,378.39 | $10,684.44 | $29,991.98 | $109,262.60 |
| 2041 / 80 | Partial clawback | $145,751.33 | $128,292.00 | -$17,459.33 | $13,324.10 | $2,618.90 | $10,705.20 | $30,951.95 | $112,180.48 |
| 2042 / 81 | Partial clawback | $149,990.63 | $130,858.00 | -$19,132.63 | $13,590.58 | $2,869.89 | $10,720.68 | $31,941.89 | $115,178.84 |
| 2043 / 82 | Partial clawback | $154,354.44 | $133,475.00 | -$20,879.44 | $13,862.39 | $3,131.92 | $10,730.47 | $32,979.61 | $118,242.91 |
| 2044 / 83 | Partial clawback | $158,846.45 | $136,145.00 | -$22,701.45 | $14,139.64 | $3,405.22 | $10,734.42 | $34,087.30 | $121,353.93 |
| 2045 / 84 | Partial clawback | $163,470.45 | $138,868.00 | -$24,602.45 | $14,422.43 | $3,690.37 | $10,732.06 | $35,229.73 | $124,550.35 |
| 2046 / 85 | Partial clawback | $168,230.33 | $141,645.00 | -$26,585.33 | $14,710.88 | $3,987.80 | $10,723.08 | $36,408.04 | $127,834.49 |
| 2047 / 86 | Partial clawback | $173,130.14 | $144,478.00 | -$28,652.14 | $15,005.10 | $4,297.82 | $10,707.28 | $37,628.97 | $131,203.35 |
| 2048 / 87 | Partial clawback | $178,173.99 | $147,367.00 | -$30,806.99 | $15,305.20 | $4,621.05 | $10,684.15 | $38,952.72 | $134,600.22 |
| 2049 / 88 | Partial clawback | $183,366.16 | $150,315.00 | -$33,051.16 | $15,611.30 | $4,957.67 | $10,653.63 | $40,318.67 | $138,089.82 |
| 2050 / 89 | Partial clawback | $188,711.03 | $153,321.00 | -$35,390.03 | $15,923.53 | $5,308.50 | $10,615.02 | $41,728.60 | $141,673.93 |
| 2051 / 90 | Partial clawback | $194,213.12 | $156,387.00 | -$37,826.12 | $16,242.00 | $5,673.92 | $10,568.08 | $43,183.18 | $145,356.02 |
| 2052 / 91 | Partial clawback | $199,877.10 | $159,515.00 | -$40,362.10 | $16,566.84 | $6,054.31 | $10,512.52 | $44,684.64 | $149,138.14 |
| 2053 / 92 | Partial clawback | $205,707.74 | $162,706.00 | -$43,001.74 | $16,898.18 | $6,450.26 | $10,447.91 | $46,233.87 | $153,023.61 |
| 2054 / 93 | Partial clawback | $211,709.99 | $165,960.00 | -$45,749.99 | $17,236.14 | $6,862.50 | $10,373.64 | $48,041.20 | $156,806.29 |
| 2055 / 94 | Partial clawback | $217,888.93 | $169,279.00 | -$48,609.93 | $17,580.86 | $7,291.49 | $10,289.37 | $49,783.00 | $160,814.44 |
| 2056 / 95 | Partial clawback | $224,249.79 | $172,664.00 | -$51,585.79 | $17,932.48 | $7,737.87 | $10,194.61 | $51,581.85 | $164,930.07 |
Strategies to discuss for reducing net income
Your first affected year is 2028. Reducing net income before recovery by $366.10 would bring it to the threshold and preserve $54.92 of OAS, before ordinary-tax effects. A partial reduction saves 15 cents per dollar only in the partial-recovery band; income above full recovery must first fall back into that band. Lowering taxable income may also lower cash available for spending; these are planning options, not guaranteed savings.
Smooth registered withdrawals and gains
Consider drawing down registered savings in lower-income years before large RRIF minimums begin, and spreading realizations across years. Earlier withdrawals create tax now and are not automatically beneficial. This simple income-growth forecast does not calculate account depletion or future minimums.
Consider eligible pension-income splitting
Eligible spouses or common-law partners may jointly elect to split up to 50% of qualifying pension income. CPP and OAS do not qualify for this tax election. Compare both partners’ taxes and benefit recovery; the other partner’s income rises.
Review legitimate deductions
Available RRSP deductions can reduce net income, subject to contribution room and age limits; an RRSP cannot receive contributions after the end of the year you turn 71. Tax credits, such as charitable donation credits, generally do not reduce the net-income figure used for recovery.
Watch dividend gross-ups and taxable gains
Taxable dividend gross-ups, the taxable portion of gains and other worldwide income count even when spendable cash differs. Use a full tax projection for investment-income-heavy plans; this calculator assumes ordinary cash income with no gross-up.
Evaluate OAS timing in the wider plan
Delaying OAS to 70 increases its base amount by up to 36%, but does not raise the recovery starting threshold. Forgone OAS and possible GIS eligibility matter; deferral is not an automatic clawback solution.
Rules, timing and projection limits
The published recovery threshold for the 2026 income year is $95,323. Recovery is the lesser of gross OAS received and 15% of income above the threshold. Income exactly at the threshold has no recovery. Full recovery depends on your actual OAS entitlement: the model’s income cutoff is the threshold plus your annual OAS ÷ 15%, not a fixed maximum-income figure for everyone.
This is a simplified Canadian-resident, single-person annual model. Income excluding OAS is treated as ordinary taxable cash income with no deductions or adjustments. Adding gross OAS gives the modelled net-income-before-recovery figure, approximating line 23400 before special adjustments. Actual recovery income can require adjustments. TFSA withdrawals are excluded; dividend gross-ups, capital-gain inclusion, business losses and special deduction cases need a more detailed tax return.
Non-OAS income and its pension-credit-eligible subset grow at the selected rate from your first projection year. It assumes income continues without retirement-date changes or new mandatory withdrawals. OAS and recovery thresholds are indexed from 2026 using your chosen future indexing assumption. Only the 2026 recovery threshold is published here; every later threshold is a forecast rounded to the nearest dollar, not an announced government limit.
OAS uses your age-65 entitlement in 2026 dollars, a 0.6% monthly increase for deferral after 65 up to 36% at 70, and a separate 10% increase from age 75. Annual age bands assume a full year at each modelled age. Birthday-month eligibility, quarterly indexation and the actual first payment year are not prorated. If you already receive OAS, select the age at which it actually started; deferral is not applied again.
Estimated ordinary income tax reuses the app’s federal/provincial calculation, including basic, age and specified eligible pension credits. OAS recovery is deducted before ordinary income tax and subtracted once from income. Later tax schedules generally use separate 2% indexing with provincial exceptions; they do not change with the recovery-threshold indexing slider. Tax estimates omit spousal/dependant claims, dividend credits, CPP/EI contributions, refundable benefits including GIS, and other deductions or credits. Territories and non-resident tax rules are not modelled.
Rows show the estimated liability for each income year, not the monthly withholding calendar. CRA generally uses an income year to set OAS recovery withholding for July of the following year through June of the next. For example, 2026 income informs July 2027–June 2028 withholding. The actual annual liability is reconciled on your tax return. Future income and policy changes can alter both the first affected year and the amounts.
Educational estimates only, not an exact tax assessment or personalized financial advice. Consult a qualified tax professional before changing withdrawals or benefit elections.