Last Updated On 24 August 2026, 4:15 PM EDT (Toronto Time)
Canadian seniors will receive their next combined Canada Pension Plan (CPP) and Old Age Security deposits (OAS payments) on Thursday, August 27, 2026, carrying the elevated quarterly rates that took effect last month.
The August 27 deposit is the second payment at the 1.2% quarterly OAS increase confirmed for the July to September 2026 quarter, the largest single-quarter adjustment of the year so far.
CPP payments continue at the 2% annual indexation rate that Service Canada applied to all benefits in pay beginning with the January 28 deposit, with no separate mid-year CPP adjustment.
Beyond the August deposit, the Government of Canada has already confirmed that OAS benefits will increase again by 1.4% for the October to December 2026 quarter, making it the strongest quarterly adjustment of the entire calendar year.
That October increase will push the maximum monthly OAS pension past $762 for seniors aged 65 to 74 and above $838 for those 75 and over.
This guide covers the exact amounts landing in bank accounts on August 27, the CPI arithmetic behind the current quarterly rate, projected October payment figures, updated clawback thresholds for two separate recovery tax periods, the full CPP benefit table, GIS and Allowance amounts, and every remaining 2026 payment date.
Table of Contents
OAS Payment Amounts Landing On August 27
The August 27 deposit carries the same July to September 2026 quarterly rates that first appeared in the July 29 payment.
Seniors aged 65 to 74 with 2025 annual net world income below $152,062 can receive up to $751.97 per month in OAS, according to the official Old Age Security payment amounts page.
That monthly maximum rose from $743.05 during the April to June 2026 quarter after the 1.2% quarterly adjustment was applied.
Seniors aged 75 and over with 2025 annual net world income below $157,923 can receive up to $827.17 per month.
The higher amount for the 75 and over group reflects the permanent 10% enhancement that has applied to all OAS payments for seniors in this age bracket since July 2022.
These maximums require a full 40 years of Canadian residency after age 18.
Seniors who lived in Canada between 10 and 39 years after turning 18 receive a partial pension calculated as the number of qualifying years divided by 40, multiplied by the applicable maximum.
| Your situation | Your 2025 annual net world income must be | Maximum monthly payment |
|---|---|---|
| Age 65 to 74 | less than $152,062 | up to $751.97 |
| Age 75 and over | less than $157,923 | up to $827.17 |
The year-over-year increase from July 2025 through July 2026 works out to 2.3%, spread across four separate quarterly reviews throughout the year.
Published OAS rates do not decrease solely because the Consumer Price Index falls, but an individual’s payment can still change because of income, residency, or eligibility factors unrelated to CPI.
CPI Calculation Behind The Current Quarterly Increase
The OAS payment amounts page published by the Government of Canada shows the exact CPI figures used to determine the July to September 2026 quarterly rate.
The most recent three-month reference period is February, March, and April 2026.
Statistics Canada recorded CPI index values of 165.9 for February, 167.4 for March, and 168.0 for April, producing a three-month average of 167.1.
The comparison period is the last three-month stretch that triggered an OAS increase, which is November 2025 through January 2026.
Those months recorded CPI values of 165.4, 165.0, and 165.0, producing a three-month average of 165.1.
The quarterly increase is calculated as the difference between the two averages divided by the earlier average: (167.1 minus 165.1) divided by 165.1, which equals 1.2%.
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 |
Last three-month 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 |
This quarterly mechanism allows OAS to respond to inflation faster than the annual CPP adjustment cycle, which only recalculates once each January.
Confirmed OAS Increase Coming In October 2026
The Government of Canada has already confirmed that OAS benefits will increase by 1.4% for the October to December 2026 quarter, according to the official OAS payment amounts page.
This will represent the largest single-quarter OAS adjustment of the entire 2026 calendar year, surpassing the 1.2% increase applied in July.
The year-over-year increase from October 2025 to October 2026 will reach 3.0%, reflecting cumulative inflation pressure across four quarterly reviews.
Applying the confirmed 1.4% increase to the current July to September 2026 maximums produces the following projected October amounts.
| Benefit | July-September 2026 | Projected October-December 2026 |
|---|---|---|
| OAS pension, age 65 to 74 | $751.97 | approximately $762.50 |
| OAS pension, age 75 and over | $827.17 | approximately $838.75 |
| GIS, single/widowed/divorced | $1,123.17 | approximately $1,138.89 |
| Allowance | $1,428.06 | approximately $1,448.05 |
| Allowance for the Survivor | $1,702.34 | approximately $1,726.17 |
*October to December 2026 amounts above are calculated by applying the confirmed 1.4% increase to the current quarterly maximums. Official dollar figures will be published by Service Canada on the quarterly rate card before the October 28 payment.*
The October 28, 2026 payment will be the first deposit at the new quarterly rate and is the tenth of twelve scheduled CPP and OAS payment dates in the 2026 calendar year.
A senior aged 65 to 74 receiving the full OAS pension will see their monthly deposit rise by approximately $10.53 between August and October, from $751.97 to roughly $762.50.
Seniors aged 75 and older will see a projected jump of approximately $11.58, from $827.17 to roughly $838.75, after the October adjustment takes effect.
OAS Recovery Tax Rules For Current And Upcoming Periods
The OAS pension is taxable income and is subject to a recovery tax that reduces or eliminates payments for higher-income seniors.
Two separate sets of thresholds apply in 2026 because the OAS recovery tax runs on a July to June cycle that does not align with the calendar year.
Current Recovery Period: July 2026 To June 2027 (Based On 2025 Income)
For the recovery tax period running from July 2026 through June 2027, the CRA uses your 2025 net world income from line 23600 of your tax return.
Individual 2025 net world income above $93,454 triggers the recovery tax at a rate of 15% on every dollar above that threshold.
OAS is fully eliminated at approximately $152,062 for recipients aged 65 to 74 and at approximately $157,923 for those aged 75 and over.
Future Recovery Period: July 2027 To June 2028 (Based On 2026 Income)
The published OAS pension repayment range for 2026 income begins at a confirmed minimum threshold of $95,323, with an estimated full-clawback ceiling of $155,109 for seniors aged 65 to 74, according to the official quarterly rate card.
For seniors aged 75 and over, the estimated upper repayment threshold based on 2026 income is $161,088.
The Government of Canada notes that maximum recovery thresholds published between January and September are estimates and become final from October through December, so these upper figures may be adjusted slightly.
Seniors who want to protect their OAS payments from July 2027 onward need to keep their 2026 net world income below $95,323 to avoid any reduction.
| Recovery period | Income year | Threshold | Full clawback, age 65-74 | Full clawback, age 75+ |
|---|---|---|---|---|
| July 2026 – June 2027 | 2025 | $93,454 | $152,062 | $157,923 |
| July 2027 – June 2028 | 2026 | $95,323 | $155,109 (est.) | $161,088 (est.) |
Net world income used in the clawback calculation includes the OAS pension itself plus all other reportable income on the T1 tax return.
GIS, Allowance, and Allowance for survivor payments are not taxable and do not count toward the recovery tax calculation.
If a recovery tax applies, it is generally spread over 12 monthly OAS payments after the CRA calculates it, rather than being collected as a single lump sum at tax time.
GIS Amounts For The July To September 2026 Quarter
The Guaranteed Income Supplement paid on top of OAS also received the 1.2% quarterly increase effective for the July to September 2026 quarter.
GIS amounts were recalculated in July using 2025 tax return data for the new July 2026 to June 2027 benefit year, replacing the 2024 income that governed payments from July 2025 through June 2026.
Income cutoffs used for GIS exclude the OAS pension itself, the first $5,000 of employment or self-employment income, and 50% of employment or self-employment income between $5,000 and $15,000.
| Your situation | Your annual net income must be | Maximum monthly payment |
|---|---|---|
| Single, widowed, or divorced | less than $22,800 | up to $1,123.17 |
| Partner receives a full OAS pension | combined less than $30,096 | up to $676.09 |
| Partner receives the Allowance | combined less than $42,144 | up to $676.09 |
| Partner does not receive OAS or Allowance | combined less than $54,624 | up to $1,123.17 |
A single senior receiving the full OAS pension and maximum GIS will see a combined monthly deposit of approximately $1,875.14 on August 27.
GIS amounts are non-taxable and do not need to be reported as income on the annual T1 return.
Seniors who did not file their 2025 tax return by the April 30 deadline may have experienced GIS suspensions starting in July, and should file immediately to restore payments.
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 for the July to September 2026 quarter is $1,428.06, available when the couple’s combined annual income stays below $42,144.
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 the same quarter is $1,702.34, available when individual annual income stays below $30,696.
Both payments require a minimum of 10 years of Canadian residency after age 18 and are non-taxable.
Both benefits will also increase by the confirmed 1.4% for the October to December 2026 quarter alongside OAS and GIS.
CPP Payments Remain At The Annual 2026 Rate
The Canada Pension Plan adjusts benefits in pay only once each year, every January, using the 12-month Consumer Price Index average.
Service Canada confirmed a 2.0% annual increase in CPP benefits in pay for 2026, applied to every monthly payment starting with the January 28 deposit, according to the official Maximum Benefit Amounts report.
The August 27 CPP deposit for existing recipients reflects the same annual indexation that has applied since January, with no separate quarterly CPP adjustment.
A retiree who began collecting CPP at age 65 in January 2026 at the full rate can receive a maximum monthly retirement pension of $1,507.65.
The latest published average monthly CPP retirement pension for new beneficiaries at age 65 was $877.01 as of April 2026, according to the official CPP payment amounts page.
Most retirees receive well below the maximum because qualifying for the ceiling requires making the highest allowable contributions over roughly 39 years of working history.
Contributors who delay CPP from age 65 to age 70 earn a 42% higher monthly benefit, while those who start at age 60 accept a permanent 36% reduction.
The CPP death benefit is a one-time payment of $2,500, with an additional $2,500 payable when the contributor died before receiving a CPP retirement or disability pension and did not leave an eligible survivor.
CPP 2026 Maximum Amounts At A Glance
| CPP benefit (starting January 2026) | Maximum monthly amount |
|---|---|
| Retirement pension at age 65 | $1,507.65 |
| Post-retirement benefit at age 65 | $54.69 |
| Disability pension | $1,741.20 |
| Post-retirement disability benefit | $610.46 |
| Survivor pension, younger than 65 | $803.54 |
| Survivor pension, 65 and older | $904.59 |
| Combined survivor and retirement at 65 | $1,531.56 |
| Combined survivor and disability | $1,756.14 |
| Children’s benefit, under 18 or full-time student | $307.81 |
| Children’s benefit, part-time student | $153.91 |
| Death benefit (one-time payment)* | $2,500.00 |
*An additional $2,500 death benefit is payable when the contributor died before collecting a retirement or disability pension and did not leave behind an eligible survivor, bringing the potential total to $5,000.
Maximum amounts for new CPP benefits beginning in January 2026 reflect the CPP enhancement that began phasing in during 2019.
These maximums can increase slightly each month as the enhancement continues to phase in, with monthly data available through the official Statistics on CPP monthly maximum amounts dataset.
CPP Contribution Rates For 2026 Workers
Understanding CPP contribution rates helps working Canadians plan for their future retirement income and anticipate payroll deductions throughout the year.
The Year’s Basic Exemption for 2026 remains at $3,500 under the CPP contribution framework.
The Year’s Maximum Pensionable Earnings for 2026 rose to $74,600, while the Year’s Additional Maximum Pensionable Earnings sit at $85,000 for the second CPP contribution tier.
Workers and employers each pay 5.95% on earnings between the basic exemption and the YMPE, producing a maximum base contribution of $4,230.45 per side.
The second tier known as CPP2 applies a 4% rate on earnings between the YMPE and the YAMPE, capped at $416 per side for 2026.
Self-employed Canadians pay both halves, producing a combined maximum CPP contribution of $9,292.90 for the year.
OAS Deferral For Higher Lifetime Payments
Seniors who do not need OAS income at age 65 can defer the pension for up to 60 months to receive a higher monthly amount.
Each deferred month adds 0.6% to the future monthly payment, up to a 36% total increase at age 70.
A senior who defers from 65 to 70 at the current July to September rate would receive approximately $1,022.68 per month instead of $751.97.
Seniors aged 75 and over who deferred would see the 10% enhancement layered on top of the deferred base, pushing the maximum above $1,124 per month.
The maximum retroactive OAS start date is 11 months, and the deferral period itself does not count toward retroactivity.
Deferring OAS means you are not eligible for GIS during the deferral period because GIS requires active OAS receipt.
The breakeven calculation for deferral depends on lifespan, taxes, GIS eligibility, clawback exposure, and personal cash flow needs, so there is no universal breakeven age.
How To Verify Your August 27 Payment
August 27 is the official direct-deposit payment date for CPP, OAS, GIS, and the Allowances.
Individual bank posting times can vary, and payments are issued on the listed date but may take a few days to arrive in your account.
Recipients receiving payments by cheque should allow additional mail-delivery time, as cheques are mailed during the last three business days of the month.
My Service Canada Account provides a secure online portal for reviewing payment status, benefit amounts, and historical deposits for every OAS and CPP recipient.
The account also allows recipients to update direct deposit banking information, mailing addresses, and voluntary tax withholding preferences.
If a scheduled payment does not arrive, the Government of Canada advises waiting five to ten business days before contacting the program through Service Canada.
Recipients can contact Service Canada at 1-800-277-9914 to report a missing payment or start a payment inquiry.
Teletypewriter users can reach Service Canada at 1-800-255-4786 for the same inquiry.
Remaining 2026 CPP And OAS Payment Dates
The August 27 deposit is the eighth of twelve scheduled CPP and OAS payment dates in the 2026 calendar year, confirmed by the Government of Canada through the official benefits payment dates calendar.
| Payment date | OAS quarterly rate period |
|---|---|
| August 27, 2026 (Thursday) | July to September 2026 (1.2% increase) |
| September 25, 2026 (Friday) | July to September 2026 |
| October 28, 2026 (Wednesday) | October to December 2026 (1.4% increase) |
| November 26, 2026 (Thursday) | October to December 2026 |
| December 22, 2026 (Tuesday) | October to December 2026 |
The December payment is scheduled earlier in the month than the usual late-month CPP and OAS payment pattern.
CPP amounts remain fixed at the January 2026 annual rate through all twelve payments, while OAS, GIS, Allowance, and Allowance for the Survivor amounts follow the quarterly adjustment cycle.
Frequently Asked Questions (FAQs)
When will the next OAS payment arrive after August 27?
The next CPP and OAS deposit is scheduled for September 25, 2026, and will carry the same July to September 2026 quarterly rate because OAS holds its current level through the end of September before the October adjustment takes effect.
How much will OAS increase in October 2026?
The Government of Canada has confirmed a 1.4% OAS increase for October to December 2026, which would push the maximum to approximately $762.50 for ages 65 to 74 and $838.75 for those 75 and over.
What is the difference between CPP and OAS cost of living adjustments?
CPP adjusts once each January based on a full 12-month CPI average, while OAS adjusts four times per year in January, April, July, and October using shorter three-month CPI windows that allow faster inflation pass-through.
Can I receive both CPP and OAS at the same time?
Most Canadian seniors receive both pensions on the same monthly deposit date, with each benefit calculated independently based on its own eligibility rules and contribution or residency requirements.
What happens if my 2025 income exceeded $93,454?
Your OAS payments from July 2026 through June 2027 are subject to a 15% recovery tax on every dollar of 2025 net world income above $93,454, spread across your monthly OAS deposits for that period.
Will the October 1.4% increase also apply to GIS and the Allowances?
Yes, the confirmed 1.4% quarterly adjustment for October to December 2026 applies to all OAS benefit categories, including the basic pension, GIS, the Allowance, and the Allowance for the Survivor.
Fact-Checked: Payment amounts, income thresholds, CPI index values, payment dates, quarterly adjustment percentages, and recovery tax figures are verified against official Canada.ca publications as of August 2026, including the Old Age Security payment amounts page, the Maximum Benefit Amounts and Related Figures report for Q3 2026, and the CPP pensions and benefits monthly amounts page.
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.
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