Tax Guide/Life events
Retirement income
Updated November 4, 2026
What is taxable
CPP, Old Age Security (OAS), pensions and RRIF withdrawals are taxable. TFSA withdrawals are not.
OAS recovery tax
If your 2026 net income is above $95,323, you repay 15% of the excess, up to your full OAS. This is often called the clawback.
Ways to lower tax
- Pension income splitting: you can allocate up to 50% of eligible pension income to your spouse.
- Pension income amount: a federal credit on up to $2,000 of eligible pension income.
- Age amount: up to $9,208 federally at 65 or older, reduced above $46,432 of net income.
- TFSA withdrawals: can fund spending without raising net income.
An RRSP must end by December 31 of the year you turn 71. A RRIF then requires minimum withdrawals.