Many Canadian retirees receive monthly Canada Pension Plan (CPP) and Old Age Security (OAS) payments. But are these benefits taxable? How do you report them? This detailed guide explains the tax treatment of retirement income, CRA reporting rules, and tips to minimize your tax burden in 2025.
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🧾 Is Canada Pension Plan (CPP) Taxable?
Yes. Your CPP retirement pension is fully taxable as income. You will receive a T4A(P) slip from Service Canada reporting your total annual CPP income.
You must include this amount on line 11400 of your personal tax return (T1).
📨 Is Old Age Security (OAS) Taxable?
Yes. OAS payments are also fully taxable and must be reported on your T1 return using the T4A(OAS) slip issued by Service Canada.
OAS income is reported on line 11300 of your return.
💸 What About OAS Clawback?
If your net income exceeds the OAS recovery threshold ($90,997 for 2025), the CRA will begin to claw back a portion of your OAS through the OAS Recovery Tax. This is calculated using your net income (line 23600) and reported on line 23500.
📑 Other Retirement Income That’s Taxable
- Registered Retirement Income Fund (RRIF) withdrawals
- Employer pensions (T4A slips)
- Annuities or deferred profit-sharing plans (DPSPs)
- Foreign pensions (e.g., U.S. Social Security)
🧮 How to Reduce Taxes on CPP and OAS
- Split eligible pension income with your spouse
- Claim the age amount (line 30100)
- Claim the pension income amount (line 31400)
- Contribute to a spousal RRSP if you’re under 71
- Delay CPP/OAS to increase benefits and potentially defer taxes
📋 Important Slips for Reporting
| Slip | Use | Line on Return |
|---|---|---|
| T4A(P) | CPP income | 11400 |
| T4A(OAS) | OAS income | 11300 |
| T4A | Other pensions | 11500 |
📅 When to File Your Return
Most individuals must file by April 30, 2025. If you or your spouse/common-law partner is self-employed, the deadline is extended to June 15, 2025, though any tax owing is still due April 30.
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📘 CRA Resources for Seniors
Disclaimer: This article is intended for informational purposes only and should not be considered financial or tax advice. Consult a certified tax professional for personalized guidance on your retirement income tax situation.
