For many Canadian seniors, Old Age Security (OAS) remains a lifeline—covering essentials such as housing, groceries, and transportation. In August 2025, the federal government rolled out a cost-of-living increase, providing additional support for retirees. Seniors aged 75 and older will now receive a maximum of \$808.45 per month, marking a 1% quarterly adjustment.
This update comes at a time when inflation continues to put pressure on household budgets, ensuring retirees maintain their purchasing power.
What’s New This August 2025?
OAS payments are reviewed every quarter and adjusted according to the Consumer Price Index (CPI). For the period from July to September 2025, the OAS benefit increased by 1%, representing a 2.3% rise compared to the same time last year.
The maximum monthly OAS rates for August 2025 are:
- Ages 65 to 74: \$734.95
- Ages 75 and over: \$808.45
- With GIS (estimated): Up to \$1,800+ per month
These figures are maximums. The actual payment depends on your years of Canadian residency after age 18 and your net income.
August 2025 OAS Payment Date
The August OAS payment is set for Wednesday, August 27, 2025.
- Direct deposit: Funds will be available in your account the same day.
- Cheque by mail: May take 5–7 business days longer to arrive.
Eligibility Criteria for OAS
To qualify for Old Age Security, you must:
- Be 65 years or older.
- Be a Canadian citizen or legal resident when your application is approved.
- Have lived in Canada for at least 10 years after age 18 (or 20 years if applying from outside Canada).
In many cases, Service Canada will automatically enroll eligible individuals. If not, you can apply online, by mail, or in person.
OAS Clawback (Recovery Tax) Thresholds for 2025
High-income seniors may see part of their OAS reduced through the OAS Recovery Tax, also called the clawback. For 2025, repayment begins if your net income exceeds:
- \$148,541 for ages 65–74
- \$154,196 for ages 75+
Guaranteed Income Supplement (GIS) Boost
Low-income seniors may also be eligible for the Guaranteed Income Supplement (GIS)—a non-taxable top-up to OAS. Combined with OAS payments, monthly income for some recipients can exceed \$1,800, depending on marital status and household income.
To remain eligible for GIS, seniors must file a tax return each year, even if they have little or no income.
Is OAS Taxable?
Yes, Old Age Security is taxable income in Canada. By default, no tax is withheld at the time of payment. However, recipients can request voluntary deductions through My Service Canada Account or by submitting a federal form. This can help manage year-end tax bills and prevent surprises during tax season.
Remaining OAS Payment Dates in 2025
After the August payment, the remaining OAS payment dates for the year are:
- September: September 25, 2025
- October: October 29, 2025
- November: November 26, 2025
- December: December 22, 2025
Signing up for direct deposit ensures timely payments and reduces the risk of lost or delayed cheques.
Why This Increase Matters
The August 2025 OAS adjustment to \$808.45 for seniors aged 75+ underscores the government’s continued effort to safeguard retirees’ purchasing power in the face of ongoing inflation. For many, this additional amount—though modest—helps offset rising costs for housing, groceries, and healthcare.
Seniors are advised to verify their enrolment status, keep their personal and banking details up to date, and check eligibility for additional programs like the GIS to maximize support.
FAQs
Q1: What is the OAS amount for seniors 75+ in August 2025?
Seniors aged 75 and older can receive up to \$808.45 per month, depending on residency and income.
Q2: When will the August 2025 OAS be paid?
The payment will be issued on Wednesday, August 27, 2025.
Q3: Does high income affect OAS eligibility?
High income does not affect basic eligibility, but it can reduce your payment through the OAS Recovery Tax.
Q4: How does the GIS work with OAS?
The Guaranteed Income Supplement (GIS) is a non-taxable top-up for low-income seniors, which can bring monthly benefits to over \$1,800.
Q5: Is OAS taxable income?
Yes, OAS is taxable, but you can arrange voluntary tax deductions to avoid a large bill at tax time.
