For many Canadian seniors, the Old Age Security (OAS) program is a vital lifeline—helping cover essentials like housing, groceries, and transportation. In August 2025, the federal government announced a cost-of-living increase, boosting support for retirees.
Seniors aged 75 and older will now receive a maximum of $808.45 per month, reflecting a 1% quarterly adjustment.
This increase comes at a time when inflation continues to strain household budgets, ensuring that seniors maintain their purchasing power.
What’s New This August 2025?
OAS payments are reviewed every quarter and adjusted to reflect the Consumer Price Index (CPI). From July to September 2025, benefits increased by 1%, which represents a 2.3% rise compared to the same period last year.
The updated maximum monthly OAS rates are:
- Ages 65 to 74: $734.95
- Ages 75 and over: $808.45
- With GIS (Guaranteed Income Supplement): Up to $1,800+ per month depending on household income
Maximum OAS Rates & GIS Support
| Age Group | Max OAS Monthly Payment | With GIS (Estimated) |
|---|---|---|
| 65–74 years | $734.95 | May exceed $1,800 per month |
| 75+ years | $808.45 | May exceed $1,800 per month |
Note: Actual payments depend on years of Canadian residency after age 18 and your annual net income.
August 2025 OAS Payment Date
The August OAS payment is scheduled for Wednesday, August 27, 2025.
- Direct Deposit: Funds will arrive in your account on the same day.
- Cheque by Mail: May take 5–7 additional business days to be delivered.
Eligibility Criteria for OAS
To qualify for OAS, seniors must:
- Be 65 years or older
- Be a Canadian citizen or legal resident at the time of approval
- Have lived in Canada for at least 10 years after age 18 (or 20 years if applying from abroad)
- File a tax return annually to maintain eligibility for OAS and GIS
Many seniors are automatically enrolled, but those who are not can apply online, by mail, or in person through Service Canada.
OAS Clawback (Recovery Tax) Thresholds for 2025
High-income seniors may face a reduction in OAS benefits through the OAS Recovery Tax (clawback). For 2025, repayment starts if your net income exceeds:
- $148,541 for ages 65–74
- $154,196 for ages 75+
Guaranteed Income Supplement (GIS) Boost
Low-income seniors can receive the Guaranteed Income Supplement (GIS)—a non-taxable top-up added to OAS. Combined with OAS, monthly income for some households can exceed $1,800, depending on marital status and household income.
To stay eligible for GIS, seniors must file taxes each year, even with little or no income.
Is OAS Taxable?
Yes, OAS is considered taxable income in Canada. By default, no tax is withheld at the time of payment.
Seniors can request voluntary deductions through their My Service Canada Account to manage their year-end tax bill and avoid surprises during tax season.
Remaining OAS Payment Dates in 2025
Following the August payment, here are the remaining OAS payment dates for the year:
- September: September 25, 2025
- October: October 29, 2025
- November: November 26, 2025
- December: December 22, 2025
Setting up direct deposit ensures faster and more secure payments.
Why This Increase Matters
The August 2025 OAS increase to $808.45 for seniors aged 75+ highlights the government’s commitment to protecting retirees from the impact of rising costs. While the boost is modest, it provides meaningful support in covering essential expenses such as housing, food, and healthcare.
Seniors should also review their eligibility for GIS and other support programs to maximize their benefits and ensure financial security.
The new OAS payment increase brings maximum monthly support for seniors aged 75+ to $808.45 as of August 2025. This adjustment ensures retirees maintain better financial stability against inflation.
With additional GIS top-ups, total monthly benefits can surpass $1,800, offering significant relief for low-income seniors.
Mark your calendars for August 27, 2025, update your banking details for direct deposit, and make sure you remain eligible to take full advantage of this important program.
FAQs
Why is the OAS payment for seniors 75+ set at $808.45 in August 2025?
Because OAS payments are adjusted quarterly for inflation, with a 1% rise applied from July to September 2025.
What is the OAS recovery tax threshold for 2025?
The clawback begins when net income exceeds $148,541 for ages 65–74 and $154,196 for seniors 75+.
Can seniors receive more than $1,800 per month?
Yes, seniors eligible for the Guaranteed Income Supplement (GIS) can see their combined OAS and GIS benefits exceed $1,800 monthly.