How Much Is OAS in Canada? Payment Amounts & Eligibility

Canada’s Old Age Security (OAS) program provides a foundational income stream for most Canadian seniors. This monthly payment is a universal benefit, not tied to employment history or contributions. While broadly accessible, the amount received can vary based on income, due to a recovery tax for higher earners. Understanding OAS eligibility, payment calculations, and related benefits helps individuals comprehend this important retirement support.

OAS Eligibility Requirements

To qualify for the Old Age Security pension, an individual must be 65 years of age or older. For those residing in Canada, individuals must be a Canadian citizen or legal resident and have lived in Canada for at least 10 years after turning 18.

If an individual lives outside Canada, they must have been a Canadian citizen or legal resident when they left Canada. They must also have resided in Canada for at least 20 years after age 18 to be eligible for OAS payments while living abroad. While some individuals are automatically enrolled, many must apply to confirm eligibility and initiate payments.

Determining Your OAS Payment

The amount of Old Age Security payment an eligible individual receives depends on their years of residency in Canada and their annual net income. For the July to September 2025 quarter, the maximum monthly OAS payment is $734.95 for individuals aged 65 to 74. Those aged 75 and over receive $808.45 per month. These payment amounts are subject to quarterly adjustments based on changes in the Consumer Price Index (CPI).

A full OAS pension is awarded to those who have resided in Canada for at least 40 years after age 18. For those with fewer than 40 years of residency, the OAS pension is pro-rated. They receive a partial pension, calculated as one-fortieth of the full amount for each year of residency. For instance, if someone lived in Canada for 30 years after age 18, they would receive 30/40ths, or 75%, of the maximum OAS payment.

The Old Age Security recovery tax, known as the “clawback,” reduces benefits for higher-income seniors. This recovery tax applies if an individual’s net income exceeds a specified threshold. For the 2024 tax year, which impacts OAS payments from July 2025 to June 2026, the minimum income recovery threshold is $90,997. For every dollar of net income above this threshold, 15 cents of the OAS benefit is recovered.

To illustrate, if an individual’s net income for 2024 was $95,000, which is $4,003 above the $90,997 threshold, their OAS would be reduced by 15% of that difference. This calculation results in a recovery amount of $600.45 ($4,003 x 0.15). This annual recovery amount is deducted from monthly OAS payments over the July-to-June recovery tax period. The OAS pension can be fully recovered if an individual’s net income reaches a higher threshold, which for 2024 income is approximately $148,451 for those aged 65-74 and $154,196 for those aged 75 and over.

Related Benefits and Supplements

Beyond the basic Old Age Security pension, the Canadian government offers additional income-tested benefits to support low-income seniors. One such benefit is the Guaranteed Income Supplement (GIS), a non-taxable monthly payment available to OAS recipients who have a low income and reside in Canada.

The amount of GIS an individual can receive depends on their marital status and income, excluding their OAS pension. For example, a single senior with an annual income below approximately $22,272 may qualify for GIS. GIS ensures a minimum income level for seniors with limited other retirement income. Eligibility for GIS is reviewed annually based on the income information provided in the individual’s tax return.

Another related benefit is The Allowance, which supports individuals aged 60 to 64 whose spouse or common-law partner receives the GIS and the full OAS pension. There is also The Allowance for the Survivor, specifically for individuals aged 60 to 64 who have a low income and whose spouse or common-law partner has passed away. These Allowance benefits are also non-taxable payments. Applying for OAS often initiates an assessment for GIS and The Allowance, but accurate reporting of income and marital status changes is important for continued eligibility and correct payment amounts.

Receiving Your OAS Payments

The process for receiving Old Age Security payments involves either automatic enrollment or an application. Many eligible Canadians are automatically enrolled for OAS when they turn 64, provided they have filed tax returns in recent years. If automatic enrollment occurs, Service Canada sends a notification letter. If no notification is received by the month after turning 64, individuals must apply online or by mail.

OAS payments are made monthly, typically on the third-to-last banking day of each month. Direct deposit is the most common method for receiving payments, ensuring timely and secure delivery. Payments can also be received by cheque, though this method may result in longer delivery times.

Old Age Security payments are taxable income and must be reported on an individual’s annual income tax return. Recipients receive a T4-OAS or NR4-OAS statement from Service Canada each February for tax filing purposes. Maintaining accurate personal information with Service Canada is important, as changes in income, marital status, or residency can affect OAS payment amounts or continued eligibility. Reporting such changes helps ensure payments are correctly adjusted, avoiding potential overpayments or underpayments.