Why do retirees owe tax at year-end?

Each retirement income source (CPP, OAS, pension, RRIF) withholds tax as if it is your only income. When combined, your total income is higher than any single source assumes, pushing you into a higher tax bracket with insufficient withholding.

How do I avoid a retirement tax surprise?

Request additional tax withholding from each income source. For CPP and OAS, file Form ISP-3520 with Service Canada. For pensions, contact your administrator. For RRIF, ask your financial institution to withhold a higher percentage.

What is the OAS clawback?

If your net income exceeds $90,997 in 2025, your Old Age Security is reduced by 15 cents for every dollar above the threshold. At $142,609, OAS is fully clawed back to zero. This acts as an additional 15% tax rate on income in that range.

Retirement Income Tax Calculator

Most retirees with multiple income streams pay too little tax during the year — because each payer withholds as if they're your only income source. Enter your income below to see your estimated tax and the withholding gap you need to fix.

📍 Province of Residence

💰 Retirement Income Sources (Annual)

CPP Income

OAS Income

Company Pension

RRIF/RRSP Withdrawals

Part-Time Employment

Interest Income

Canadian Dividends

Other Income

🧾 Tax Already Withheld (Annual)

Withheld from CPP

Withheld from OAS

Withheld from Pension

Withheld from RRIF

Withheld from Employment

Withheld from Other

⚙️ Additional Options

I am 65 or older I split pension income with my spouse

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