For example, if you earned $94,761 during the “OAS year” from July 2023 to June 2024, the CRA would calculate that you earned $13,000 above the OAS clawback threshold. When the 15% pension recovery tax is applied to that amount we get $1,950. Now, instead of applying this tax ...
Canada Pension Plan First, what is the Canadian Pension Plan (CPP)? It is a fund that exists and is managed by the Canadian government. Canadians contribute money to the fund with every single paycheck, which shows up as “CPP Contribution”. It’s roughly 5% of your salary, up to a m...