Updated Checked by the Tax-Services.ca editorial team How we check
In Ontario, a spouse with a $60,000 pension or RRIF, $12,000 of other income and $8,600 of OAS pays about $15,306 in income tax with no split. Moving $23,400 of that pension to a partner with $4,000 of other income and $8,600 of OAS cuts the couple’s combined bill to $12,134, a saving of $3,172 for 2026 (estimate).
The calculator tries every split from nothing up to the 50% limit and picks the cheapest. It counts the pension credit and any OAS recovery tax, which is why the best answer is often well below 50%.
How much of the pension can I move to my spouse?
Up to 50% of the eligible pension income, moved to your spouse or common-law partner, and you choose the amount again every year. Both of you sign Form T1032, both must live in Canada on December 31, and you can’t have lived apart for 90 days or more because of a breakdown. The partner who receives the amount also gets the pension credit on up to $2,000 of it, which is why even a small split can pay off.
What counts as pension income you can split?
Lifetime payments from a registered pension plan qualify at any age. From age 65, RRIF and LIF payments, annuity payments and RRSP annuity payments qualify too. Before 65, those RRIF and annuity payments only qualify when they come from a spouse who died. CPP, QPP and OAS can’t be split with this election, and amounts moved from a RRIF into an RRSP or another RRIF don’t count. The Canada Revenue Agency: pension income splitting page has the details.
Does splitting change the OAS recovery tax?
Yes, because OAS recovery tax is worked out on one person’s income. For 2026 income the CRA’s threshold is $95,323, and 15% of income above it is clawed back. Take a pensioner with $120,000 of pension, $40,000 of other income and $8,600 of OAS, and a partner with only OAS. With no split the couple owes $58,164, including $8,600 of recovery tax. Splitting $60,000 brings the total to $37,448 and the recovery tax to $1,992, a saving of $20,716.
Where does splitting save the most?
It saves the most when one partner is in a higher bracket and the other has room in a low one. For the couple in the opening example, the saving by province looks like this.
| Province | Tax saved |
|---|---|
| Ontario | $3,172 |
| Alberta | $3,593 |
| Nova Scotia | $3,752 |
Brackets and rates differ by province, so run your own numbers.
What does this estimate leave out?
The age amount, the spouse amount, provincial benefits and tax already withheld. Provincial pension credit amounts are the 2025 figures from the CRA’s line 31400 page, and Quebec is treated like the federal amount. Check the OAS threshold on the Canada.ca OAS recovery tax page before you rely on it. For tax on RRIF withdrawals alone, try the retirement income tax calculator, and for the OAS amount itself the OAS calculator.
Where does this information come from?
The splitting rules come from the Canada Revenue Agency pages on pension income splitting and line 31400, and the OAS threshold from Canada.ca. Tax amounts come from this site’s own 2026 tax engine. Checked in October 2026. This is an independent information site: we provide no services, we do not represent the CRA or any organization, and we do not guarantee that anything here is accurate or current. We accept no liability for decisions based on it. Check the official source before you rely on it. See the full disclaimer.
Frequently asked questions
Can I split RRIF income at age 62?
Usually not. Before 65, RRIF and annuity payments only qualify when they come from a spouse who died. Lifetime payments from a registered pension plan qualify at any age. Once you turn 65, RRIF payments become eligible and the split can start that year.
Do I have to move the full 50%?
No. You can move any amount up to 50%, and the best amount is often lower. In the example the cheapest split is $23,400, which is 39% of the $60,000 pension, because moving more starts pushing the partner into a higher bracket.
What form do we file to split our pension?
Both partners complete Form T1032, and the receiving partner enters the amount on line 11600. File it by the filing due date. If you file online, keep the form in case the CRA asks for it. Only one election can be made for a tax year.
Can we split CPP or OAS the same way?
No. CPP, QPP and OAS are excluded from this election. CPP has its own pension sharing program through Service Canada, open to couples living together, and the total paid out stays the same. OAS isn't part of either program.