Old Age Security (OAS) is Canada’s largest public pension program, and payment amounts are adjusted four times a year to keep pace with the cost of living. If you are approaching 65, already receiving OAS, or helping a parent plan their retirement income, here is everything you need to know about OAS in 2026 — from current payment amounts to the clawback threshold that can reduce your benefit.

What Is Old Age Security (OAS)

Old Age Security is a monthly pension paid by the Government of Canada to eligible seniors aged 65 and older. Unlike the Canada Pension Plan (CPP), OAS is not tied to your work history or how much you contributed during your career. Instead, it is funded entirely out of general federal tax revenue and is based primarily on how many years you have lived in Canada as an adult.

Because OAS is not an insurance-style contributory program, almost every long-term Canadian resident aged 65+ qualifies for at least a partial payment, even if they never worked or paid into CPP.

How Much Is OAS in 2026

OAS amounts are reviewed and adjusted every quarter based on the Consumer Price Index (CPI), so the maximum payment changes slightly every three months. For the July to September 2026 quarter, the maximum monthly amounts are:

• Ages 65 to 74: up to $751.97 per month
• Ages 75 and older: up to $827.17 per month

The higher amount for seniors 75+ reflects a permanent 10% boost to OAS that took effect in July 2022 to help older seniors, who tend to have higher health and care costs and fewer years left to draw down savings.

Keep in mind these are maximum amounts. Your actual payment depends on how long you have lived in Canada after age 18 and whether the OAS recovery tax (clawback) applies to you. Over the past year, OAS amounts have risen roughly 2.3% cumulatively, reflecting several quarters of modest CPI-linked increases — a trend that has been consistent for the past few years as inflation has moderated but not disappeared.

How the Quarterly Increases Work

OAS payment amounts are reviewed every January, April, July, and October using the Consumer Price Index. If the cost of living has gone up since the last review, your payment increases proportionally. If CPI happens to fall or stay flat, your payment simply stays the same — OAS amounts are protected and never decrease, even during a period of deflation.

This is different from many other benefit programs that adjust only once a year, and it means OAS recipients see their payments keep pace with inflation more closely throughout the year.

Who Is Eligible

To qualify for OAS, you generally need to meet the following requirements:

• Be 65 years of age or older
• Be a Canadian citizen or legal resident at the time your application is approved
• Have lived in Canada for at least 10 years since turning 18 (if you currently live in Canada), or at least 20 years since turning 18 (if you live outside Canada)

To receive the full OAS pension amount, you need 40 years of residence in Canada after age 18. If you have fewer than 40 years of residence but meet the minimum threshold, you receive a partial pension calculated proportionally — for example, 20 years of residence would generally result in roughly half the full pension amount.

The OAS Clawback (Recovery Tax)

Higher-income seniors may have some or all of their OAS “clawed back” through what is officially called the OAS recovery tax. For the 2026 tax year, once your net individual income exceeds approximately $95,323, the government begins recovering 15 cents of OAS for every dollar of income above that threshold.

A few important details about how the clawback actually works in practice:

• The recovery tax is based on your net world income reported on your tax return, not just your Canadian income.
• Repayment is usually collected in advance through reduced monthly payments during the payment year that runs from July to the following June, based on your net income from the previous calendar year.
• If your income keeps rising, OAS is fully eliminated once net income reaches roughly $154,708 (for ages 65–74; the threshold is somewhat higher for the 75+ group because of their higher base pension).

If your income was unusually high in one year but has since dropped, you can ask Service Canada to reduce your withholding based on your estimated current-year income instead of waiting for the following tax year to true things up.

How to Apply and Payment Dates

Many people are automatically enrolled in OAS. Service Canada reviews its records around your 64th birthday and sends a notification letter if you qualify for automatic enrollment — in that case, you don’t need to apply at all. If you don’t receive a letter by the month after you turn 64, you should apply manually through your My Service Canada Account (MSCA) or by mailing a paper application.

OAS is paid monthly, generally toward the end of each month. It’s worth applying a few months before you want payments to start, since processing can take time and OAS (unlike CPP) is not retroactive beyond 11 months from the date Service Canada receives your application.

Frequently Asked Questions

Can I defer OAS past 65 for a higher amount?

Yes. You can delay starting OAS for up to 5 years past age 65. For every month you delay, your payment increases by 0.6%, which adds up to a maximum increase of 36% if you wait until age 70. There is no benefit to deferring past age 70.

Does OAS count as taxable income?

Yes, OAS is fully taxable income and must be reported on your tax return. This is also the income that determines whether the recovery tax (clawback) applies to you.

How does OAS interact with GIS (Guaranteed Income Supplement)?

The Guaranteed Income Supplement is a separate, non-taxable monthly benefit available to low-income OAS recipients. You must already be receiving OAS to qualify for GIS, and your GIS amount is calculated based on your income (excluding OAS itself in most calculations). Many low-income seniors receive both benefits together.

Planning Ahead

Because OAS amounts change every quarter and the clawback threshold is adjusted annually for inflation, it’s worth checking your expected payment amount on Canada.ca each time you do a retirement income review — especially if you’re close to the recovery tax threshold, since small changes in other income (like RRIF withdrawals or part-time work) can push you over the line.

Bottom Line

OAS remains one of the most important sources of guaranteed retirement income for Canadian seniors, and the quarterly CPI adjustments mean payments generally keep pace with inflation over time. Whether you’re just becoming eligible or already receiving payments, it pays to check the current maximum amounts, confirm your years of Canadian residence, and keep an eye on the clawback threshold if your income is on the higher side.