Last Updated On 28 July 2026, 10:20 AM EDT (Toronto Time)
Canadian seniors will receive their next Old Age Security – OAS payments and Guaranteed Income Supplement deposits on Wednesday, July 29, 2026, and this payment carries the largest confirmed quarterly increase so far in 2026.
The Canadian government has confirmed a 1.2% increase in OAS benefits for the July to September 2026 quarter, pushing maximum monthly payments to $751.97 for seniors aged 65 to 74 and $827.17 for those 75 and over.
It is important for newcomers, prospective immigrants, and long-term residents alike to understand how Canadian public pension system works because OAS and GIS eligibility are built on years of Canadian residency rather than employment history.
This quarterly adjustment is more than ten times the size of the 0.1% bump that seniors received during the April to June quarter, reflecting a meaningful acceleration in consumer prices driven by elevated gasoline costs and persistent food inflation through the spring.
July is also the most consequential month in the OAS calendar for a second reason that goes beyond the quarterly CPI increase.
Service Canada uses the July payment to recalculate every Guaranteed Income Supplement, Allowance, and Allowance for the Survivor amount based on the recipient’s 2025 tax return, replacing the 2024 income data that governed GIS payments from July 2025 through June 2026.
The OAS recovery tax threshold also resets with the July payment, moving from the 2024 income-based clawback to a new calculation rooted in 2025 net world income.
Three separate mechanisms landing on the same deposit date means that many seniors will notice a meaningful change in their July 29 payment compared to what they received on June 26, whether that change is an increase, a decrease, or a complete suspension of GIS, depending on how their 2025 income compares to 2024.
This guide covers the confirmed July to September payment amounts, the exact CPI calculation behind the 1.2% increase, the annual GIS income reset, the updated OAS recovery tax thresholds, an early projection for the October 2026 adjustment, and everything seniors need to know about confirming their payment.
Table of Contents
Why July Is The Biggest OAS Payment Change Of 2026
Old Age Security uses a quarterly adjustment cycle that recalibrates payments in January, April, July, and October based on the Consumer Price Index.
The January 2026 quarter delivered a 0.3% increase, and the April quarter added 0.1%, raising the maximum monthly OAS pension by $2.96 for seniors aged 65 to 74 and by $3.26 for those aged 75 and over compared with the October to December 2025 rates.
The July quarter changes that trajectory entirely with a confirmed 1.2% jump, adding approximately $8.92 per month for seniors aged 65 to 74 and $9.81 per month for those 75 and over.
Over the full year from July 2025 to July 2026, OAS has now increased by 2.3%, layered across four separate quarterly reviews.
The published OAS rates are protected from decreasing solely because of falling CPI under the Old Age Security Act, although an individual recipient’s actual payment can still change because of income, residency, or eligibility factors.
The same 1.2% adjustment applies to all OAS benefits simultaneously, including the Guaranteed Income Supplement, the Allowance, and the Allowance for the Survivor.
Maximum OAS Amounts Landing On July 29
Seniors aged 65 to 74 with 2025 net world income below $152,062 can receive up to $751.97 per month in OAS beginning with the July 29 deposit.
That maximum rose from $743.05 during the April to June quarter, an increase of $8.92 per month or approximately $26.76 over the three-month quarter.
Seniors aged 75 and over with 2025 net world income below $157,923 can receive up to $827.17 per month.
That figure reflects the permanent 10% enhancement introduced in July 2022 for seniors over 75, applied on top of the standard base rate and all quarterly adjustments.
The 75 and over maximum rose from $817.36 to $827.17, an increase of $9.81 per month or approximately $29.43 over the quarter.
These amounts apply only to seniors who accumulated 40 or more years of Canadian residency after age 18 and qualify for the full pension.
Partial pensions apply to seniors with between 10 and 39 years of residency after turning 18, calculated as a proportion of the full amount based on qualifying years.
| Your situation | 2025 net world income must be | Maximum monthly payment |
| Age 65 to 74 | Less than $152,062 | $751.97 |
| Age 75 and over | Less than $157,923 | $827.17 |
2026 OAS Quarterly Rate History
| Quarter | Age 65 to 74 | Age 75 and over | Quarterly increase |
| January to March 2026 | $742.31 | $816.54 | 0.3% |
| April to June 2026 | $743.05 | $817.36 | 0.1% |
| July to September 2026 | $751.97 | $827.17 | 1.2% |
A senior aged 65 to 74 receiving the full pension throughout all of 2026 will collect three different monthly rates across the year, starting with the $742.31 base set in January, with the possibility of a fourth if the October quarter produces another adjustment.
The CPI Calculation Behind The 1.2% Increase
The quarterly OAS adjustment compares the average Consumer Price Index over two separate three-month periods to determine whether benefits should rise.
For the July to September 2026 calculation, the most recent three-month period for which CPI data was available at the time of calculation was February, March, and April 2026.
The comparison period is the last three-month window where a CPI increase triggered an OAS benefit increase, which was November and December 2025 and January 2026.
Most Recent Three-Month Period
| Month | CPI index value |
| February 2026 | 165.9 |
| March 2026 | 167.4 |
| April 2026 | 168.0 |
| Three-month average | 167.1 |
Reference Period (Last Period That Triggered An Increase)
| Month | CPI index value |
| November 2025 | 165.4 |
| December 2025 | 165.0 |
| January 2026 | 165.0 |
| Three-month average | 165.1 |
The percentage increase is calculated as (167.1 minus 165.1) divided by 165.1, which equals 1.21%, rounded to 1.2% for the official quarterly adjustment.
The spring CPI acceleration was driven primarily by higher gasoline prices linked to Middle East supply disruptions, with Statistics Canada reporting that gasoline prices reached their highest level since June 2022 in May 2026.
Food prices also contributed to the acceleration, with grocery inflation running at 4.3% year over year in May 2026 before moderating to 3.9% in June according to Statistics Canada.
GIS Amounts For The July To September 2026 Quarter
The Guaranteed Income Supplement received the same 1.2% quarterly increase effective with the July 29 deposit.
A single, widowed, or divorced senior with 2025 annual net income below $22,800 can receive up to $1,123.17 per month in GIS, up from $1,109.85 in the April to June quarter.
A married or common-law senior whose partner also receives a full OAS pension can receive up to $676.09 per month, provided their combined income stays below $30,096.
A senior whose partner receives the Allowance can also receive up to $676.09 per month, with a combined income ceiling of $42,144.
A senior whose partner does not receive an OAS pension or Allowance can receive up to $1,123.17 per month, with a combined income threshold of $54,624.
GIS amounts are non-taxable and do not count toward the net income thresholds used for the OAS recovery tax calculation.
GIS generally decreases as other income rises, but the calculation is not a flat 50% reduction in every situation.
The first $5,000 of annual employment or self-employment income is fully exempt from the GIS income test, and 50% of earnings between $5,000 and $15,000 is also exempt, giving working low-income seniors meaningful room to earn without losing their full supplement.
| Your situation | 2025 annual net income must be | Maximum monthly payment |
| Single, widowed, or divorced | Less than $22,800 | $1,123.17 |
| The partner receives full OAS pension | Combined less than $30,096 | $676.09 |
| The partner receives the allowance. | Combined less than $42,144 | $676.09 |
| The partner does not receive OAS or allowance. | Combined less than $54,624 | $1,123.17 |
Combined OAS And GIS Maximum Monthly Amounts (July to September 2026)
| Your situation | OAS maximum | GIS maximum | Combined monthly total |
| Single, aged 65 to 74 | $751.97 | $1,123.17 | $1,875.14 |
| Single, aged 75 and over | $827.17 | $1,123.17 | $1,950.34 |
A single senior aged 75 and over with no other income could receive a combined OAS and GIS deposit of $1,950.34 per month starting with the July 29 payment, representing the highest combined maximum monthly amount the program has reached.
The Annual July GIS Reset Based On 2025 Tax Returns
Every July, Service Canada recalculates Guaranteed Income Supplement, Allowance, and Allowance for the Survivor entitlements using the most recent tax return on file.
The July 2026 recalculation switches from 2024 income data to 2025 net income as reported on returns filed by the April 30, 2026 deadline.
This annual income reset means that your July GIS payment can change in two separate and independent ways: the 1.2% quarterly CPI increase that applies uniformly to all recipients and an individual recalculation based on whether your 2025 income was higher or lower than your 2024 income.
Seniors whose income dropped between 2024 and 2025 may see GIS payments rise substantially beyond the standard 1.2% quarterly adjustment starting with the July 29 deposit.
Seniors whose income rose may see reduced GIS payments starting in July or a complete suspension of the supplement if their 2025 income exceeded the applicable threshold.
Late filers risk a temporary suspension of GIS payments starting in July because Service Canada cannot complete the recalculation without a current tax return on file, as explained in our coverage of CRA processing times.
Even seniors with zero income must file a return every year to maintain continuous GIS eligibility and avoid payment gaps.
Payments suspended due to late filing may be retroactively restored once Service Canada processes the return, but the gap in income during the interim can last several weeks or months depending on when you file.
Allowance And Allowance For The Survivor
The Allowance supports Canadians aged 60 to 64 whose spouse or common-law partner receives both GIS and a full OAS pension.
The maximum monthly Allowance payment for July to September 2026 is $1,428.06, up from $1,411.13 in the prior quarter.
Couples qualify for the Allowance only if their combined annual income sits below $42,144 and the younger partner has at least 10 years of Canadian residency after age 18.
The Allowance for the Survivor supports widowed Canadians aged 60 to 64 who have not remarried or entered a new common-law relationship.
The maximum monthly Allowance for the Survivor for July to September 2026 is $1,702.34, up from $1,682.15 in the prior quarter.
Individual annual income must stay below $30,696, and the recipient must have at least 10 years of Canadian residency after age 18.
Both the Allowance and the Allowance for the Survivor are non-taxable and do not add to reportable income on the annual tax return.
| Benefit | Income requirement | Maximum monthly payment (Jul-Sep 2026) | Previous quarter (Apr-Jun 2026) |
| Allowance | Combined less than $42,144 | $1,428.06 | $1,411.13 |
| Allowance for the Survivor | Individual less than $30,696 | $1,702.34 | $1,682.15 |
OAS Recovery Tax Thresholds For July 2026 To June 2027
The OAS pension is fully taxable and subject to a recovery tax when a recipient’s net world income exceeds the annual threshold, a rule that affects higher-income benefit recipients across the country.
For the July 2026 to June 2027 recovery period, the minimum income recovery threshold is $93,454, based on 2025 net world income as reported on your tax return.
Every dollar of 2025 net world income above $93,454 triggers a 15-cent reduction in monthly OAS payments, with the recovery tax spread across 12 monthly deposits from July 2026 through June 2027.
OAS is fully eliminated at $152,062 of 2025 net world income for seniors aged 65 to 74 and at $157,923 for seniors aged 75 and over.
The higher elimination threshold for the 75 and over group exists because their maximum OAS pension is larger due to the permanent 10% enhancement.
Net world income used in the clawback calculation includes the OAS pension itself plus all other reportable income on the T1 return, meaning the pension can partially trigger its own recovery at certain income levels.
GIS, Allowance, and Allowance for survivor payments are not taxable and do not factor into the recovery tax calculation.
A separate and higher threshold of $95,323 applies to 2026 income and will govern OAS payments from July 2027 through June 2028, as covered in our CRA clawback thresholds guide.
| Recovery period | Threshold (clawback begins) | Full elimination (65-74) | Full elimination (75+) | Based on income year |
| July 2026 to June 2027 | $93,454 | $152,062 | $157,923 | 2025 |
| July 2027 to June 2028 | $95,323 | $155,109 | $161,088 | 2026 |
A senior aged 65 to 74 with 2025 net world income of $110,000 exceeds the $93,454 threshold by $16,546.
The recovery tax is 15% of $16,546, which equals $2,481.90 per year or $206.83 per month deducted from their OAS payments.
Instead of receiving the full $751.97 maximum, this senior would receive approximately $545.14 per month after the clawback from July 2026 through June 2027.
OAS Deferral At The New July Rate
Seniors who do not need OAS income at age 65 can defer the pension for up to 60 months to boost their permanent monthly amount.
Each month of deferral adds 0.6% to the monthly payment, accumulating to a maximum 36% increase at age 70.
At the July 2026 base rate, a senior aged 65 to 74 who deferred from 65 to 70 would receive approximately $1,022.68 per month instead of $751.97.
When that senior turns 75, the permanent 10% enhancement would apply on top of the deferred amount, pushing the monthly payment to approximately $1,124.95.
Deferral makes the most sense for seniors who continue earning high employment income between 65 and 70 that would otherwise trigger the OAS recovery tax.
Seniors who defer OAS past 65 can request a retroactive start date for up to 11 months, but months counted as a deferral period do not count toward retroactivity.
The breakeven calculation for deferral depends on lifespan, tax rates, GIS eligibility, clawback exposure, and personal cash flow needs, so no universal breakeven age applies to every senior.
Seniors in poor health, those who qualify for GIS, or those who need immediate income may benefit more from claiming at 65.
Projected October 2026 OAS Adjustment
The October 2026 quarterly review will compare the May, June, and July 2026 CPI average against the February to April 2026 reference average of 167.1.
Statistics Canada has already confirmed that the all-items CPI index reached 169.6 in May and 169.0 in June 2026.
Headline inflation slowed from 3.2% year over year in May to 2.8% in June, driven by a 10.2% month-over-month decline in gasoline prices as diplomatic talks brought temporary calm to Middle East energy markets.
The July CPI reading will not be released until August 17, 2026, so exact October OAS amounts cannot be confirmed yet.
However, the direction of the adjustment is already clear based on two of the three months of available data.
October 2026 OAS Projection Scenarios
| If July 2026 CPI is | May-Jun-Jul average | Increase over 167.1 reference | Projected quarterly increase |
| 168.5 | 169.03 | 1.16% | ~1.2% |
| 169.0 | 169.20 | 1.26% | ~1.3% |
| 169.5 | 169.37 | 1.36% | ~1.4% |
Oil prices remained volatile throughout July, creating uncertainty around the final July CPI reading.
Under all three scenarios, another OAS increase in October appears highly likely, with the projected range falling between approximately 1.2% and 1.4% depending on July fuel prices.
This projection is not official and the final October adjustment will depend on the actual July CPI reading published by Statistics Canada and the official rates published by Service Canada.
How To Confirm Your July 29 Payment
Direct deposit recipients should receive their combined OAS and GIS payment on Wednesday, July 29, 2026, although individual bank posting times may vary.
Posted cheques may take longer, and the Canadian government recommends waiting five to ten business days after the scheduled date before contacting the program about a missing payment.
My Service Canada Account provides a secure online portal for reviewing payment status, benefit amounts, and historical deposits for every OAS and GIS recipient.
Seniors can log in through their existing GCKey or Sign-In Partner credentials to confirm the July deposit has posted correctly.
The account also allows recipients to update direct deposit banking information, mailing addresses, and voluntary tax withholding preferences.
If the July 29 payment does not arrive, recipients should first confirm bank posting times and My Service Canada Account details before contacting Service Canada.
Recipients can contact Service Canada at 1-800-277-9914 to report a missing payment or start a payment inquiry.
Missing payments are most often caused by outdated banking information, stale mailing addresses, gaps in residency records, or a suspended GIS due to a late or missing 2025 tax return.
2026 OAS Payment Dates
The July 29 deposit is the seventh of twelve scheduled OAS and GIS payment dates in the 2026 calendar year.
The remaining deposit dates confirmed by the Canadian government through the official benefits payment calendar are listed below.
| Payment date | Quarter | OAS rate applies |
| July 29, 2026 | July to September | $751.97 / $827.17 |
| August 27, 2026 | July to September | $751.97 / $827.17 |
| September 25, 2026 | July to September | $751.97 / $827.17 |
| October 28, 2026 | October to December | To be confirmed |
| November 26, 2026 | October to December | To be confirmed |
| December 22, 2026 | October to December | To be confirmed |
OAS and GIS are typically combined into a single deposit on the same date each month, and CPP payments also arrive on the same schedule for most recipients.
The December payment is issued earlier than usual on December 22 to accommodate year-end banking schedules.
Service Canada has not yet released the official 2027 payment calendar as of late July 2026.
The July 29 deposit marks the most significant single-payment shift in OAS income this year, combining the 1.2% quarterly increase, the annual GIS income reset, and the clawback threshold rollover into one event.
Seniors should verify their July payment through My Service Canada Account to confirm the new amounts have been applied correctly, especially GIS recipients whose individual recalculation based on 2025 income may produce a noticeably different deposit.
The next quarterly review in October will be shaped by the May through July CPI data, with early readings suggesting another increase is likely given that two of the three available CPI values already sit well above the 167.1 reference period.
Frequently Asked Questions (FAQs)
Can I receive OAS if I live outside Canada?
To qualify for OAS while living outside Canada, a person generally must have been a Canadian citizen or legal resident on the day before leaving and must have resided in Canada for at least 20 years after age 18. Seniors who meet the 20-year residency requirement can receive OAS payments while living abroad in any country, and the pension will continue indefinitely even if they never return to Canada. Those with between 10 and 19 years of residency can continue receiving OAS outside Canada for only six months after the month of departure, after which payments are suspended until they return.
Does pension income splitting with a spouse reduce the OAS clawback?
Eligible pension income such as RRIF withdrawals and registered pension plan payments can be split with a spouse or common-law partner for tax purposes by filing Form T1032, which can lower one spouse’s net income below the $93,454 threshold and reduce or eliminate their OAS recovery tax. CPP pension sharing is a separate mechanism that requires both spouses to apply jointly through Service Canada, and it redistributes CPP income between the two tax returns based on each partner’s contributory period during cohabitation. Combining both strategies effectively can keep both partners below the clawback zone, but it requires annual tax planning because income levels change year to year.
What happens to GIS if my income drops suddenly because I retire mid-year?
If your income drops significantly due to retirement, job loss, or reduction in pension income during the current year, you can contact Service Canada to request that your GIS be recalculated using your estimated current-year income instead of your previous year’s tax return. This option requires submitting a Statement of Estimated Income form and applies on a case-by-case basis. Without this request, your GIS amount would remain based on 2025 income until the next annual reset in July 2027.
Do TFSA withdrawals count as income for GIS or OAS clawback purposes?
Tax-Free Savings Account withdrawals are not included in net income for any federal tax purpose, which means they do not affect your GIS entitlement, do not count toward the OAS recovery tax calculation, and do not appear on your T1 return. This makes TFSA withdrawals one of the most effective sources of retirement income for seniors who want to stay below GIS and OAS clawback thresholds. Converting RRSP savings into a TFSA during lower-income years before claiming OAS is a common strategy, though the RRSP withdrawal itself counts as taxable income in the year it occurs.
Will the 10% OAS enhancement for seniors 75 and over ever be extended to younger seniors?
The federal government has not announced plans to extend the 10% OAS enhancement to seniors aged 65 to 74 as of July 2026. The enhancement was enacted through Bill C-30, the Budget Implementation Act, 2021, No. 1, which permanently increased the OAS pension by 10% for seniors aged 75 and over beginning in July 2022. However, Private Member’s Bill C-261 proposes extending the 10% increase to all OAS pensioners aged 65 and over while also raising the GIS earnings exemption from $5,000 to $6,500. Bill C-261 is currently at second reading in the House of Commons but has not yet been referred to committee or become law. Private member’s bills also face a more uncertain legislative path than government-sponsored legislation.
Fact-Checked: Payment amounts, income thresholds, CPI index values, payment dates, and adjustment percentages are verified against official Canadian government publications as of July 2026, including the Old Age Security payment amounts page, the GIS benefit page, the benefits payment calendar, and Statistics Canada CPI releases current to July 20, 2026.
Disclaimer: This article provides general information only and does not constitute financial, legal, or tax advice. Consult Service Canada or a qualified professional for guidance on your specific situation.
Something went wrong. Please refresh the page and/or try again.
You may also like: New Service Canada Benefit Payment Dates 2026-2027
New CPP Payments To Be Sent Canada-Wide On July 29
New OAS Payments Coming On July 29 With An Increase
10 New Ontario Laws and Rules Coming In August 2026