OAS clawback in Quebec: the 2026 threshold

Old Age Security (OAS — the federal pension, called PSV in Quebec) isn’t guaranteed in full to everyone. Above a certain income, the federal government takes part of it back — this is the Old Age Security recovery tax, commonly called the “OAS clawback.” For a Quebec household whose retirement income approaches $95,000, it’s one of the most rewarding tax decisions to understand: crossing the threshold costs 15 cents per dollar, on top of ordinary tax. Here’s how the 2026 threshold works, at what income OAS disappears entirely, and the levers that let you stay below it.

The 2026 recovery threshold

The rule is simple in principle: if your net world income exceeds the threshold set for the year, you must repay part of the OAS you received. For the 2026 income year, the minimum threshold is $95,323.

Every dollar of net income above $95,323 therefore triggers a repayment of 15 cents. This isn’t an ordinary marginal tax rate: it’s a levy that adds to your federal and Quebec tax on that same income. That’s why the clawback zone creates a high effective tax rate on the affected slice of income.

At what income does OAS disappear?

Because the clawback takes back 15% of the excess, there’s an income at which OAS is fully clawed back. This upper threshold depends on your age, because the base pension differs:

Between $95,323 and the upper threshold, OAS is partially clawed back. For reference, the maximum monthly OAS payment for the April-to-June 2026 quarter was $743.05 for ages 65 to 74 and $817.36 for those 75 and over (these amounts are adjusted each quarter for inflation).

Why the threshold matters for Quebec retirees

You might think $95,323 of income is out of reach in retirement. But for a public-sector household or a strong saver, taxable income stacks: the RRQ (QPP, Quebec’s public pension), an employer pension such as RREGOP (the Quebec public-sector plan), the mandatory RRIF (FERR) minimum withdrawal, and any other investment income all add up. It’s often in the late 60s and early 70s — when the RRIF minimum withdrawal piles onto the RRQ and the employer pension — that net income crosses the threshold before you’ve seen it coming.

The RRIF minimum withdrawal from 71 is often what pushes income over the threshold

The levers to stay below the threshold

The good news: the threshold is on each year’s net income, and several levers let you manage it. None is universal — each is verified by projection — but here are the main ones in Quebec.

• Split pension income at 65. Transferring up to half of eligible pension income to a lower-income spouse can pull the higher earner’s net income below the threshold. It’s often the most powerful lever for a couple.
• Draw down the RRSP earlier. Withdrawing from the RRSP during low-income years — for example between stopping work and the start of the RRQ — lightens the balance that will later be subject to the RRIF minimum withdrawal, and therefore the net income of the years where the threshold is in play.
• Use the TFSA. Withdrawals from a TFSA are not taxable and don’t raise net income. Funding an expense from the TFSA rather than the RRIF, in a tight year, can avoid crossing the threshold.
• Choose your RRQ claim age deliberately. Deferring the RRQ increases it but concentrates more taxable income later; taking it early does the opposite. The decision interacts with the threshold.

The age you claim the RRQ shifts the taxable income the clawback is calculated on

Frequently asked questions

Before you plan around the threshold

• Identify the years when your net income risks crossing $95,323 — often when the RRIF minimum withdrawal arrives on top of the RRQ.
• Evaluate pension income splitting from 65 with your spouse.
• Keep the TFSA as a buffer for tight years.
• Look at the combined effect after Quebec and federal tax, year by year, rather than an average.

See how OAS fits into the whole retirement plan

Sources: Canada Revenue Agency / Government of Canada — "Old Age Security pension recovery tax" (minimum threshold $95,323 and maximum thresholds $154,753 / $160,696 for the 2026 income year; 15% recovery rate) and "Old Age Security payment amounts" (maximum monthly amounts $743.05 and $817.36, April–June 2026 quarter), canada.ca, accessed May 31, 2026. The 2026 maximum thresholds are estimated amounts, finalized at year-end.