Old Age Security (OAS)

The OAS tax credit is a monthly payment available to Canadians aged 65 or older. It is funded from the general tax revenues of the Government of Canada (you do not pay directly into it) and exists to assist low-income seniors. To qualify, you must be:

• 65 or older
• A Canadian citizen or legal resident when your application is approved
• A Canadian citizen or legal resident on the day prior to leaving Canada, if you no longer live in the country
• Have lived in Canada for at least 10 years since your 18^th birthday to receive OAS in Canada
• Have lived in Canada for at least 20 years since your 18^th birthday to receive OAS outside of Canada

Note, there is an approximate 10% increase in OAS payments for those aged 75 and over.

Current updates and details regarding the payments can be found at: Article – “Old Age Security payment amounts” (Author: Government of Canada)

OAS Claw Back

If your worldwide income exceeds the minimum threshold amount (see table below), you must repay either a portion of your OAS pension, or the entire amount. After the maximum threshold amount, you are no longer eligible to receive the OAS pension.

To calculate the claw back amount, you take the difference between your income and the minimum threshold and multiply this amount by 15%.  Here are the current recovery tax thresholds as of October 2024 (for most recent information “Old Age Security pension recovery tax“).

For example:

If you were 67 years old and your income in 2023 was $90,000, the claw back amount from July 2024 to June 2025 would be:

Income – Minimum Threshold = Difference, Difference x 15% = Claw Back Amount

$90,000 – $86,912 = $3,088.   $3,088 x 15% = $463

You are required to pay back $463 of your OAS pension.

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