The 2026 tax changes reveal how CPP and OAS are taxed in 2026 with real numbers, including the new OAS clawback threshold of $95,323, federal tax brackets indexed at 2%, and the impact of the 2% benefit increases on your actual after-tax income. Understanding these tax shifts is critical because while your CPP and OAS payments are increasing in January 2026, the tax you pay on them is also changing, and strategic planning before December 31st could save you thousands in clawback penalties and unnecessary taxes.
A detailed breakdown of the 2026 federal tax brackets with the lowest rate dropping to 14% and income up to $58,523 taxed at this new lower rate
Expert insights on the OAS clawback threshold increase to $95,323 for 2026 and how seniors with income between $93,454 and $95,323 will keep more OAS than in 2025
The exact after-tax value of your 2% CPP and OAS increases, showing that a $29 monthly CPP increase becomes approximately $20-22 after federal taxes
Real Canadian examples demonstrating tax withholding strategies, pension income splitting, and RRSP withdrawal timing to minimize taxes and avoid OAS clawback
How much tax will I pay on my CPP in 2026? What is the new OAS clawback threshold for 2026? Will the 2% CPP increase push me into a higher tax bracket? We answer these critical questions with official Government of Canada numbers, including the Basic Personal Amount increase to $16,452, the 15% OAS clawback calculation, and proven strategies to optimize your retirement income tax situation for 2026.
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TIMESTAMP CHAPTERS
0:00 Intro & Hook: Big 2026 Tax Shift Explained
0:45 2026 Tax Changes Overview: New Brackets & Thresholds
2:30 Real Story: Ronald's OAS Clawback Victory
4:15 CPP & OAS Increases: Before and After Tax
6:00 Helen & Arthur: Tax Bracket Reality Check
7:45 Winners and Losers in the 2026 Tax Shift
9:30 5 Tax Planning Moves Before December 31
11:00 2026 Timeline: When Changes Take Effect
12:00 Final Tips & Next Steps
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