# Retirement Tax on CPP, OAS, Pension and RRIF

> Estimate yearly income tax in retirement on your pension, CPP, OAS and RRIF withdrawals, with age credits and the OAS recovery tax

A retired Ontario resident with $50,500 of yearly income from CPP, OAS, a workplace pension and a RRIF pays about $5,777 in tax, or 11.4%. Change the amounts below to see how each source moves your bill.

## Which retirement income is taxable?

All of it counts: CPP or QPP, OAS, employer pension payments and withdrawals from a RRIF or RRSP. It's added up and one set of rates applies to the total, so it doesn't matter much which pocket the money came from. Age brings two federal breaks, an age amount and a pension amount, and the calculator applies both.

| Item | Value |
| --- | --- |
| Federal age amount, age 65 and over | $9,208 |
| Age amount reduced above net income of | $46,432 |
| Federal pension income amount | Up to $2,000 |
| OAS recovery tax | 15% above $95,323 |
| RRIF minimum at 71 | 5.28% of the January 1 value |
| RRIF minimum at 75, 80, 85 | 5.82%, 6.82%, 8.51% |
| RRIF minimum at 90 and at 95 or more | 11.92% and 20.00% |

RRIF payments after 65 qualify for the pension income amount, a point the CRA's page on the [pension income amount](https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/deductions-credits-expenses/line-31400-pension-income-amount.html) spells out, with the claim capped at $2,000.

## How much tax comes off $50,500 of retirement income?

Take the default person: 67, living in Ontario, with $12,000 of CPP, $8,500 of OAS, an $18,000 pension and $12,000 from a RRIF. Income is $50,500. Federal tax after credits is $3,283.03 and Ontario tax is $2,494.31. Nothing is recovered from OAS. Total tax comes to $5,777.33, which leaves $44,722.67, or $3,726.89 a month in take-home money.

Now raise the RRIF withdrawals to $40,000. Income becomes $78,500 and tax jumps to $14,156.81, or 18.0%. That extra $28,000 of income cost $8,379.48 in tax, about 30 cents on the dollar.

Push the RRIF to $100,000 and income reaches $138,500. Tax is $40,018.64, of which $6,476.55 is OAS recovery tax, or 28.9% of income. And where you live counts: the same $50,500 in British Columbia costs $5,373.81.

## How do RRIF minimums work?

You have to take at least the minimum from a RRIF each year. Under 71 the factor is one divided by 90 minus your age. From 71 the published table applies, and it rises every year. You can withdraw more, never less. Because the minimum is a share of the January value, a large balance forces a large taxable income, and OAS recovery tax can follow. Spreading withdrawals across years keeps each year in a lower bracket.

Here's how it plays out. Raj in Regina turns 71 with $400,000 in his RRIF on January 1. The minimum is 5.28% of that, or $21,120, and every dollar of it is taxable income on top of his CPP, OAS and pension. At 75, with the same balance, the factor would be 5.82% and the minimum $23,280. Your balance will have changed by then, but you can see why a bigger pot means a bigger forced income.

## Can you lower the bill?

Test small changes and watch the total, since that's the quickest way to see what a withdrawal really costs you. Taking less from a RRIF than a big lump keeps you nearer the lower brackets, though the minimum sets a floor. From age 65 the calculator gives a federal credit at 14% on up to $2,000 of pension or RRIF income. Delaying OAS, which you can test in the [OAS calculator](https://tax-services.ca/calculators/rrsp-retirement/oas-calculator), raises the pension but also raises income later, so look at the recovery tax too.

## What if you owe tax at filing time?

Many retirees find that nothing is taken off their CPP, OAS or RRIF payments at the source, or too little, so a bill can land at tax time. If you expect one every year, ask whether you'd be better off paying instalments or having more withheld, and use the [tax instalments calculator](https://tax-services.ca/calculators/income-tax/tax-installments) to see the size of it. It's easier to spread a few hundred bucks across the year than to find it in April.

## What isn't covered?

Provincial age and pension credits aren't included, so the provincial figure may run a little high. Pension income splitting between spouses is left out as well, and it can lower the household total. Tax on dividends and interest is treated as other income at ordinary rates, so type it in as a grossed-up amount. Don't use it as a filing figure. It's a planning guide.

## Which calculators pair with this one?

Before you draw on registered savings, the [RRSP withdrawal tax calculator](https://tax-services.ca/calculators/rrsp-retirement/rrsp-withdrawal-tax) shows the gap between withholding and real tax. Your pension amounts come from the [CPP calculator](https://tax-services.ca/calculators/rrsp-retirement/cpp-calculator) and the [OAS calculator](https://tax-services.ca/calculators/rrsp-retirement/oas-calculator). For an ordinary working year, the [income tax calculator](https://tax-services.ca/calculators/income-tax/income-tax-calculator) covers the rest.

## Where this information comes from

Credit amounts, the OAS threshold and the RRIF factors come from federal sources, and tax rates from the 2026 federal and provincial tables built into the site. Results are estimates, and this website has no tie to any government body.

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Source: https://tax-services.ca/calculators/rrsp-retirement/retirement-income-tax
Last updated: 2026-10-10
Independent information site. Not affiliated with the CRA. No services, no guarantee of accuracy. See https://tax-services.ca/disclaimer