OAS Clawback & Tax Planning Strategies
The Old Age Security (OAS) clawback applies when your net income exceeds the annual threshold. For 2025, the clawback starts at $93,454 and requires repayment of 15% of income above this amount.
Current Thresholds & Full Clawback
| Age Group | Clawback Starts | Full Clawback |
|---|---|---|
| 65–74 | $93,454 | $151,668 |
| 75+ | $93,454 | $157,490 |
Tax Planning Ideas
- Defer OAS: Delay up to age 70 for a 36% increase in benefits.
- RRSP/RRIF Strategy: Withdraw early and gradually to avoid income spikes.
- Use TFSA: Withdrawals are tax-free and do not affect clawback.
- Income Splitting: Share pension income with a spouse to reduce taxable income.
- Request Reduced Withholdings: File Form T1213(OAS) if current year income will be lower.
For personalised advice, contact HMID LLP at generaldelivery@hmid.ca.