New OAS Payment Increase Coming In July 2026

Last Updated On 6 June 2026, 10:57 AM EDT (Toronto Time)

Millions of Canadian seniors are about to receive larger OAS payment deposits starting this July after the federal government confirmed a 1.2% quarterly increase for the summer months.

That bump is the largest quarterly adjustment of 2026 so far, pushing maximum monthly payments past $751 for seniors aged 65 to 74 and past $827 for those 75 and older.

Low-income seniors collecting additional monthly support could see their combined deposits climb above $1,875 per month depending on their marital status and income level.

This guide breaks down every updated payment amount, the quarterly increase schedule through April 2027, GIS recalculation rules for July, complete payment dates from May 2026 through June 2027, and the eligibility requirements that determine how much you actually receive.

The 1.2% July Increase Explained

The Government of Canada confirmed that Old Age Security benefits will increase by 1.2% for the July to September 2026 quarter, according to the official OAS payment amounts page.

That represents a 2.3% cumulative increase compared to July 2025, giving seniors their strongest year-over-year gain since the second quarter of 2025.

The increase applies to every OAS benefit category, including the basic pension, the Guaranteed Income Supplement, the Allowance, and the Allowance for the Survivor.

Unlike the Canada Pension Plan, which adjusts benefits once each January, OAS uses a faster, quarterly review cycle that responds to Consumer Price Index changes every three months.

The quarterly mechanism compares two 3-month CPI averages published by Statistics Canada, measuring price changes between the most recent available data and the last period that triggered an OAS increase.

When the newer period shows higher prices, benefits rise by the percentage difference.

When prices fall or stay flat, benefits remain unchanged because OAS rates are protected from decreasing under the Old Age Security Act.

Updated OAS Pension Amounts for July 2026

The following table shows current April to June 2026 maximum amounts alongside projected July to September 2026 amounts based on the confirmed 1.2% increase from the Government of Canada.

Benefit Category	Apr to Jun 2026	Jul to Sep 2026
OAS pension (age 65 to 74)	$743.05	$751.97*
OAS pension (age 75 and over)	$817.36	$827.17*
GIS (single, widowed, divorced)	$1,109.85	$1,123.17*
GIS (spouse receives OAS)	$668.08	$676.10*
Allowance (age 60 to 64)	$1,411.13	$1,428.06*
Allowance for the Survivor	$1,682.15	$1,702.34*

*July to September 2026 amounts are calculated by applying the confirmed 1.2% increase to the current quarter. Official dollar figures will be published on the quarterly rate card before the July 29 payment.

What the July Increase Means in Real Dollars

A senior aged 65 to 74 receiving the full OAS pension will see their monthly deposit rise from $743.05 to approximately $751.97, an increase of roughly $8.92 per month or $26.76 over the three-month quarter.

Seniors aged 75 and older will see an increase from $817.36 to approximately $827.17, reflecting the permanent 10% enhancement that has applied since July 2022 on top of regular quarterly adjustments.

A low-income single senior receiving both the maximum OAS pension and maximum GIS could see their combined monthly payment rise from approximately $1,852.90 to $1,875.14 in July.

These amounts represent the maximum possible payments and require a full 40 years of Canadian residence after age 18 for OAS and income below the applicable threshold for GIS.

GIS Recalculation in July 2026

July is a critical month for Guaranteed Income Supplement recipients because Service Canada recalculates GIS amounts based on the previous year’s tax return according to the official GIS benefit amount page.

For the July 2026 to June 2027 benefit year, GIS will be calculated using your 2025 net income as reported on your 2025 tax return.

This means your July payment could change in two separate ways: the 1.2% quarterly CPI increase that applies to all OAS benefits and an individual GIS recalculation based on whether your 2025 income was higher or lower than your 2024 income.

If your income dropped in 2025 compared to 2024, your July GIS payment could increase substantially beyond the standard 1.2% quarterly bump.

Seniors who did not file their 2025 tax return by April 30, 2026 risk having their GIS payments suspended starting in July until Service Canada receives their income information.

Even seniors with zero taxable income must file a return every year to maintain continuous GIS eligibility.

Quarterly OAS Increases Through April 2027

OAS benefits are reviewed every January, April, July, and October using Consumer Price Index data, following the methodology described on the official payment amounts page.

Quarter	Increase	OAS 65 to 74	OAS 75+
Jan to Mar 2026	0.3%	$742.31	$816.54
Apr to Jun 2026	0.1%	$743.05	$817.36
Jul to Sep 2026	1.2% (confirmed)	$751.97*	$827.17*
Oct to Dec 2026	TBD	TBD	TBD
Jan to Mar 2027	TBD	TBD	TBD
Apr to Jun 2027	TBD	TBD	TBD

The October 2026 adjustment will depend on CPI data from the May to July 2026 period, which Statistics Canada will publish in late summer as referenced in the CRA benefits payment dates 2026 to 2027 guide.

January and April 2027 adjustments will follow the same CPI comparison formula and cannot be calculated until the relevant price data is released.

The deflation safeguard under the Old Age Security Act guarantees that published OAS rates will not decrease solely because the Consumer Price Index falls, although individual payments can still change due to income, residency, or eligibility factors.

OAS Payment Dates 2026-2027

Service Canada deposits OAS, GIS, and CPP payments on the same date each month according to the federal benefits payment calendar.

May 27, 2026
June 26, 2026
July 29, 2026 (new rates)
August 27, 2026
September 25, 2026
October 28, 2026
November 26, 2026
December 22, 2026
January 27, 2027
February 24, 2027
March 29, 2027
April 28, 2027
May 27, 2027
June 28, 2027

Dates through December 2026 are confirmed by the Government of Canada. The 2027 dates are projected based on historical payment patterns and will be officially confirmed in late 2026.

The July 29, 2026 payment is the first deposit that will reflect the new 1.2% increase and the annual GIS recalculation.

The December 2026 payment typically arrives earlier than other months to account for the holiday period.

OAS Eligibility Requirements

The Old Age Security program is available to Canadian citizens and legal residents aged 65 and older who have lived in Canada for at least 10 years after turning 18.

A full OAS pension requires 40 years of residence after age 18, while partial pensions are calculated at one-fortieth of the full amount for each qualifying year as explained in the February 2026 OAS payment guide.

Unlike CPP, OAS does not require any employment history or contributions to qualify.

Most eligible seniors are automatically enrolled and receive a notification letter from Service Canada around their 64th birthday, though some must apply through their My Service Canada Account.

OAS Deferral and the 0.6% Monthly Bonus

Seniors can defer receiving OAS for up to five years past age 65, earning a permanent 0.6% increase for every month of deferral.

That adds up to a 7.2% annual increase and a maximum 36% boost for those who wait until age 70.

A senior who defers until 70 and qualifies for the July 2026 maximum of $751.97 would receive approximately $1,022.68 per month, a significant increase that compounds with future quarterly adjustments.

The maximum retroactive start date for OAS is 11 months, and the deferral period does not count toward retroactivity.

OAS Recovery Tax for Higher-Income Seniors

Seniors with higher incomes face the OAS recovery tax, commonly called the clawback, which reduces their pension by 15 cents for every dollar of net world income above the annual threshold published on the OAS payment amounts page.

For the July 2025 to June 2026 recovery period, the threshold is based on 2024 net world income above $90,997 as covered in the April 2026 CPP and OAS guide.

For the July 2026 to June 2027 recovery-tax period, the minimum recovery threshold is $93,454 based on 2025 income.

For the 2026 income year, the published OAS pension repayment range begins at $95,323 for recipients aged 65 to 74, with full repayment at $154,753.

Seniors aged 75 and over face an upper repayment threshold of $160,696 because of the enhanced 10% OAS pension.

The recovery tax is calculated by the CRA based on your annual tax return and spread across 12 monthly OAS payments after the assessment is complete.

How to Check Your July Payment

Your My Service Canada Account provides the most accurate record of your OAS pension amount, GIS entitlement, tax withholding details, and deposit history.

Compare your June 2026 payment to your July 2026 payment to see the combined effect of the 1.2% quarterly increase and any GIS recalculation.

If your July payment differs more than expected, possible reasons include updated income information from your 2025 tax return, changes to your marital status, or recovery tax adjustments applied by the CRA through the annual reassessment process.

The July payment is important because it is the first deposit of the new OAS quarter and the first month of the new GIS benefit year.

Seniors who rely on these payments should review their account before July 29 and make sure their tax filing, banking, address, and marital-status details are current.

Keeping those details updated is the simplest way to avoid delays, incorrect amounts, or unexpected changes when the new rates take effect.

Frequently Asked Questions (FAQs)

Can OAS payments ever decrease?

Published OAS rates cannot decrease solely because the Consumer Price Index falls. However, your individual payment can still change due to income fluctuations affecting the recovery tax, changes in residency status, or GIS recalculations tied to your annual tax return.

Do I receive the OAS increase automatically?

Yes, quarterly CPI adjustments are applied automatically to every current OAS recipient without any action required. You do not need to contact Service Canada or submit any forms to receive the 1.2% increase in your July 29 payment.

What happens to my GIS if I do not file my taxes?

Service Canada will suspend your GIS payments starting in July if it does not receive your 2025 tax return. Even seniors with zero income must file annually to maintain eligibility. If your return is filed late, GIS payments can resume once your income information is processed, but payment timing may vary.

Can I receive both OAS and CPP at the same time?

Yes, most Canadian seniors receive both programs simultaneously and both are deposited on the same monthly payment date. CPP is based on employment contributions, while OAS is based on residency, so receiving one has no effect on your eligibility or amount for the other. However, CPP income counts as taxable income toward the OAS clawback threshold.

How is GIS different from the OAS pension?

The Guaranteed Income Supplement is a tax-free monthly benefit paid on top of OAS to low-income seniors whose annual net income falls below specific thresholds. GIS amounts are recalculated every July based on your previous year’s tax return, and they can increase, decrease, or stop entirely depending on changes in your annual income. For single seniors, the maximum GIS payment for July 2026 is projected at approximately $1,123.17, which combined with the OAS pension could provide up to $1,875 per month in total government retirement income.

Fact Checked: All OAS payment amounts, quarterly adjustment percentages, GIS thresholds, and payment dates in this article have been verified against official Government of Canada sources, including the OAS payment amounts page and the quarterly rate card as of May 2026.

Disclaimer: This article provides general information only and does not constitute financial, legal, or tax advice. Contact Service Canada or a qualified professional for guidance on your specific situation.

Gagandeep Kaur Sekhon

Gagandeep Kaur Sekhon moved to Canada in 2010 on a study visa. She navigated through the ups and downs of her student life and gained her permanent residency in 2015. Today, she is a proud Canadian citizen residing in Calgary, Alberta. She is mother of 2 beautiful daughters and making her difference through writing and guidance at INC – Immigration News Canada.