Retirement income tax

    Income for 2026

    From 65 the age amount applies, and RRIF income qualifies for the pension income amount.
    Full OAS at 65–74 for October to December 2026: $9,150 a year at that rate.
    Interest, rent, employment. TFSA withdrawals are not taxable — leave them out.
    Total income tax
    $10,468
    federal $6,750 · provincial $3,718
    Saved by age and pension credits
    $1,365
    vs the same income without them
    OAS recovery tax
    $0
    threshold $95,323
    Average / marginal
    15.4% / 32.5%
    marginal includes recovery tax if it applies
    After-tax income
    $57,682
    $4,807 a month

    Credits used

    CreditFederal amountProvincial amount
    Age amount (65+, reduced at higher incomes)$5,950$3,201
    Pension income amount$2,000$1,796

    Eligible pension income here: $45,000 (workplace pension plus RRIF withdrawals). Ontario tax includes the surtax, the low-income tax reduction and the Ontario Health Premium.

    How your income fills the federal brackets

    Federal 14% band $0–$58,523$58,523
    Federal 20.5% band $58,523–$117,045$9,627
    SourceAmount
    CPP$14,000
    OAS$9,150
    Pension$20,000
    RRIF / RRSP$25,000
    Other$0
    Total taxable income$68,150

    The same 2026 tax engine as the planner: federal and provincial brackets, the basic personal amount, the age amount (65+, reduced by 15% of net income above the threshold) and the pension income amount, plus the Ontario surtax, low-income reduction and Health Premium. Not included: disability, medical and charitable credits, dividend and capital-gains treatment, pension splitting (see the splitting calculator) and other provincial reductions.

    Retirement income tax · Powered by RetirementPlanner.ca · MITEY. Educational estimates, not financial advice.