OAS Maximum for 2025 Announced – Check New Rates, Clawback Rules, and Income Limits Now

Updated On: June 28, 2025

Canada’s Old Age Security (OAS) has just been updated for 2025, and if you’re receiving or planning to receive OAS, these changes matter. With cost-of-living pressures on the rise, it’s more important than ever to knowing how much you’ll get, how clawback rules work, and how to qualify for extra support like the GIS or Allowance. Whether you’re already retired or helping someone plan, this guide walks you through the latest updates in plain language.

Table of Contents

What Is OAS?

Old Age Security is one of Canada’s key public pensions, paid monthly to eligible seniors aged 65 or older. Unlike CPP, which is based on work contributions, OAS eligibility depends on age and how long you’ve lived in Canada. In 2025, OAS has been adjusted to reflect inflation and other economic factors—so it’s a good time to review your retirement income strategy.

2025 OAS Payment Rates

Starting June 2025, here are the new maximum monthly payments:

Age Group	Monthly OAS (Max)	Annual Total
65 to 74	$727.67	$8,732.04
75 and over	$800.44	$9,605.28

OAS is indexed every quarter to match inflation, so these rates may rise again later in the year.

Real-Life Example:

Mary is 76 and has lived in Canada since age 18. She qualifies for the full amount and will now receive $800.44 per month—or more than $9,600 per year. That steady monthly income is crucial for covering living costs like housing, food, and prescriptions.

2025 OAS Clawback (Recovery Tax)

If your net world income in 2025 exceeds $93,454, you’ll see a reduction in your OAS through the OAS Recovery Tax.

Income Level	OAS Status
Over $93,454	OAS begins to reduce
Over $151,668	Full clawback for ages 65–74
Over $157,490	Full clawback for those 75+

How the Clawback Works:

The government reduces your OAS by 15% of every dollar above the threshold.

Example:
John earns $100,000.
$100,000 − $93,454 = $6,546
15% of $6,546 = $981.90
That’s $81.83 less per month from his OAS.

This clawback is automatically calculated when you file your taxes.

How to Reduce or Avoid the Clawback:

Defer your OAS until age 70 for a 36% higher monthly benefit
Split pension income with your spouse to reduce taxable income
Gradually withdraw RRSPs to lower future tax brackets
Make charitable donations to reduce your taxable income

If you’re close to the threshold, working with a tax professional can save you thousands.

GIS for 2025

GIS is a tax-free monthly benefit for low-income seniors receiving OAS. It’s calculated based on your previous year’s income and marital status.

Situation	Max GIS (Monthly)
Single, widowed, or divorced	$1,086.88
Married (both receive OAS)	$654.23 each
Married (only one receives OAS)	$1,086.88

GIS is reassessed every year. You must reapply and file your taxes on time to keep receiving it.

Tip: Use the GIS estimator on Canada.ca to get a rough idea of your eligibility and how much you might receive.

OAS Allowance

For Canadians aged 60 to 64, the government offers extra support before full OAS kicks in.

Program	Max Monthly Payment (2025)
Allowance (for low-income spouse of GIS recipient)	$1,381.90
Allowance for the Survivor	$1,647.34

To qualify:

You must live in Canada
Be a legal resident or citizen
Have household income below a certain threshold
Meet age requirements

These benefits help fill the gap for those not yet 65 but facing financial strain due to partner loss or low income.

How to Apply

You may be automatically enrolled at age 64 if Service Canada has all your details.

If not, you can apply:

Online through My Service Canada Account
By mail using Form ISP-3000
In person at any Service Canada office

For GIS and Allowance:

You must apply separately. These are income-tested and reviewed annually. File your taxes every year—even if you had no income—to keep receiving payments.