Finance & Investment

2025 OAS payment dates and more information about Age Security

For example, for income year 2024, the minimum income recovery threshold amount is $90,997. If your total taxable income in 2024 is $120,000, your repayments will be 15% of $29,003 (the difference between $120,000 and $90,997). Total $4,350.45.

The OAS clawback is paid in 12 monthly installments, starting in July of the next tax year (in this case 2025) and ending in June of the following year (in this case 2026). The period from July to June is called the “tax recovery period.” Continuing with our example: $4,350.45 divided by 12 equals $362.54. This is the amount you’ll need to repay each month from July 2024 to June 2025.

For the 2025 income year, the minimum income recovery threshold will be $93,454. For taxpayers aged 65 to 74, maximum The income recovery threshold, above which OAS is fully clawed back, is $151,668, and for those 75 and older, the threshold is $157,490. Learn more about OAS recovery tax thresholds.

How can I avoid a clawback from OAS?

With some planning, it is possible to reduce or avoid OAS recoveries. One strategy is to share retirement income with a spouse who has a lower marginal tax rate. Another strategy is to withdraw money from your Registered Retirement Income Fund (RRIF) based on the age of your younger spouse, your minimum withdrawal amount may be lower. Keep in mind that different types of investment income are taxed differently. (Learn more about how passive income is taxed.) Consider discussing these and other strategies with a financial advisor or tax planner.

What is the Guaranteed Income Supplement (GIS)?

The Guaranteed Income Supplement (GIS) is part of the OAS program, which provides additional, tax-free monthly payments to Canadian residents who received OAS and whose income was below a certain threshold in the previous year. Like OAS, GIS is indexed to inflation.

The income threshold changes every year. For example, from July to September 2024, the threshold for a single person is $21,768. If your income in 2023 is less than this number, you may qualify for GIS.

For couples, the maximum income thresholds for combined annual income in 2023 are:

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