Canada OAS & GIS Guide (Old Age Security, Guaranteed Income Supplement)

the Old Age Security (OAS) pension and the Guaranteed Income Supplement (GIS) in Canada. The OAS is a monthly taxable pension available to the Canadian citizens and the legal residents aged 65+ who have resided in Canada for at least 10 years as adults (the full OAS requires 40 years of residence after age 18). For the 2025 year, the maximum OAS pension is approximately $8,231 per year ($686 per month) (the OAS is indexed quarterly). The 10% OAS increase for the seniors aged 75+ (effective July 2022) increases the OAS to approximately $9,054 per year ($755 per month) for the beneficiaries aged 75+. The OAS clawback (the "OAS recovery tax") applies when the net income exceeds $90,997 (the 2025 threshold, indexed to the inflation). The clawback is 15% of the income above the threshold — the OAS is fully eliminated when the net income reaches $147,486. The GIS is a tax-free monthly payment for the low-income OAS recipients. The maximum GIS for the single OAS recipient is $1,164 per month (2025). The GIS is reduced by $1 for every $2 of the other income (except the OAS). The Allowance (the former "Spouse's Allowance") is a tax-free benefit for the low-income spouses (aged 60-64) of the OAS recipients. The Allowance for the Survivor is the tax-free benefit for the widowed seniors aged 60-64. The OAS and the GIS are administered by Service Canada (not the CRA).

OAS Eligibility & Amounts

Age requirement: 65 years or older (the taxpayer must be at least 65 years old to receive the OAS). The pension starts the month after the birthday if the application is made in the month of the 65th birthday.
Residence requirement: The full OAS (the "full pension") requires 40 years of residence in Canada after age 18. The partial OAS requires at least 10 years of residence (the "pro-rated pension" — 1/40th of the full OAS for each full year of residence). The pension is calculated as the full OAS amount multiplied by the number of years of the residence divided by 40.
International agreements: Canada has the social security agreements with over 50 countries (including the US, the UK, Australia, France, Germany, Italy, Japan, and the Philippines). The agreements allow the pooling of the residence periods from the treaty countries to qualify for the OAS.
OAS deferral: The taxpayer can defer the OAS pension from age 65 to age 70 (the "voluntary deferral"). The OAS increases by 0.6% for each month of deferral (7.2% per year), for a total increase of up to 36% (from age 65 to age 70). The deferral can be beneficial for the taxpayers who expect to have the higher longevity or the higher income in the early retirement years.
OAS at age 75+: The 10% increase for the beneficiaries aged 75+ (effective July 2022). The automatic increase applies to all the OAS recipients turning 75 after July 2022. The increase is not subject to the clawback (the OAS amount before the 10% increase is used for the clawback calculation).

OAS Clawback (Recovery Tax)

2025 threshold: The OAS clawback (the "OAS recovery tax") applies when the net income exceeds $90,997 (the annual threshold indexed to the inflation). The clawback is 15% of the net income above the threshold.
Full elimination: The OAS is fully eliminated when the net income reaches $147,486 (the "high clawback" threshold — the income level at which the 15% clawback equals the full OAS pension).
Calculation: The clawback is calculated on the tax return (the line 23500 — the "Social Benefits Repayment"). The taxpayer reports the total OAS received and the clawback is calculated as the lesser of the total OAS received and 15% of the net income above the threshold.
Tax planning: The OAS clawback can be mitigated through the RRSP contributions (which reduce the net income), the TFSA withdrawals (which do not affect the net income), the pension income splitting with the spouse (if the spouse has the lower income), and the investment income shifting (through the prescribed rate loans).

GIS (Guaranteed Income Supplement)

Eligibility: The GIS is available to the OAS recipients with the low income (the single seniors or the couples with the income below the GIS threshold). The GIS is tax-free (not included in the taxable income).
Maximum GIS (single): $1,164 per month (2025, indexed quarterly). The GIS is reduced by $1 for every $2 of the other income (the "2:1 phase-out rate"). The GIS is fully eliminated when the income exceeds $22,296 (the single senior, the non-OAS income).
Maximum GIS (couple): $701 per month per person (2025, indexed quarterly). The couple GIS is reduced by $1 for every $2 of the combined income above the exemption. The GIS for the spouse of the Allowance recipient is $1,164 per month (the "couple with the Allowance" rule).
Working income exemption: The GIS includes the "working income exemption" — the first $5,000 of the employment income (and 50% of the income above $5,000) is exempt from the GIS phase-out. The working income exemption encourages the seniors to continue working.
Automatic renewal: The GIS is renewed automatically each year (the Service Canada uses the CRA tax return data to recalculate the GIS). The taxpayer must file the tax return by April 30 each year to continue receiving the GIS (the "October extension" applies to the late filers — the GIS continues for the first 6 months of the benefit year, then stops if the return is not filed).

Allowance & Allowance for the Survivor

Allowance: A tax-free benefit for the spouses (aged 60-64) of the OAS recipients. The maximum Allowance is approximately $1,318 per month (2025, the combined OAS + GIS rate for the couple). The Allowance is reduced by 75% of the couple's combined income above the threshold.
Allowance for the Survivor: A tax-free benefit for the widowed seniors (aged 60-64) who have not remarried. The maximum Allowance for the Survivor is approximately $1,576 per month (2025). The benefit is reduced by $1 for every $2 of the income above the threshold.

For the CPP rules and the retirement benefits, see our CPP Guide →. For the pension income splitting and the age amount tax credit, see our Pension Income Splitting Guide →.