OAS and GIS Payments Rise 1.2% Effective July 29 2026

44

Old Age Security and Guaranteed Income Supplement payments are going out on July 29, 2026. This payment reflects a confirmed 1.2% quarterly increase, which takes effect for the July to September 2026 payment period. If you receive OAS, GIS, or both, your deposit will be slightly higher than last quarter.

This update also matters because July marks the annual GIS income reset. That means Service Canada recalculates your GIS eligibility and amount based on your 2025 tax return. Your July payment could look different from June, so read on to understand why and what the new amounts mean for you.

The 1.2% Increase Explained

OAS is indexed to inflation using the Consumer Price Index. Service Canada reviews the rate every quarter, in January, April, July, and October. For the July to September 2026 quarter, the confirmed increase is 1.2%. That is applied to your base OAS pension amount before any clawback deductions are made.

For a recipient receiving the full basic OAS pension, a 1.2% increase adds a few extra dollars per month. It may seem small, but it compounds each quarter as long as the CPI keeps rising. The increase applies automatically. You do not need to call Service Canada or submit any form. Your July 29 direct deposit will simply be higher than your June deposit was.

The same 1.2% increase also applies to GIS amounts. GIS is not just a flat top-up. It comes in different amounts depending on your marital status and whether your spouse also receives OAS or the Allowance. All of those payment tiers go up by 1.2% this quarter. For seniors on very low fixed incomes, GIS is often the larger of the two payments, so even a modest percentage increase matters in dollar terms.

You can confirm your updated payment amount by logging into your My Service Canada Account. The updated figure should reflect the new quarterly rate starting with the July 29 deposit.

The GIS Income Reset and What It Means for Your Payment

Every July, Service Canada resets GIS eligibility using your most recent tax return. For the July 2026 payment, that means your 2025 income is the new baseline. If you filed your 2025 taxes on time, Service Canada uses that figure automatically to recalculate how much GIS you qualify for.

This reset can go either way. If your 2025 income was lower than 2024, you may now qualify for more GIS. If your income was higher, possibly from RRSP withdrawals, rental income, or a one-time payment, your GIS could decrease or even stop temporarily. This surprises many seniors every July. Your OAS continues regardless, but GIS adjusts based on income.

If you had an unusual income event in 2025 that will not continue in 2026, you have options. Service Canada allows you to estimate your current-year income and apply for an estimated-income adjustment. This can restore GIS payments faster than waiting for the next annual reset. Contact Service Canada directly if you believe your 2025 income overstates what you will actually earn going forward.

One more detail worth noting: if you did not file your 2025 taxes, your GIS payments may have stopped or been reduced starting this July. Filing your taxes, even with no income, is the mechanism that keeps GIS payments flowing. For more on how GIS eligibility and renewals work, the Government of Canada explains the process in plain language.

OAS Clawback Threshold for This Quarter

The OAS Recovery Tax, commonly called the clawback, applies if your net world income exceeds a set threshold. That threshold is adjusted each year and updates quarterly when OAS amounts change. With the 1.2% increase now in effect, the clawback threshold for the July to September 2026 quarter has also been updated to reflect current payment levels.

If your income is above the threshold, Service Canada reduces your OAS payment by 15 cents for every dollar of income above the limit. This happens automatically at source. High-income seniors do not receive the full OAS and then repay later. The reduction is calculated and applied before the payment goes out.

If you are close to the clawback threshold, certain tax strategies, such as splitting pension income with a spouse or timing RRSP-to-RRIF conversions, can help keep your net income below the line. This is not tax advice, but it is worth discussing with a financial planner if your income is in that range. The goal is to keep as much of your OAS intact as possible while staying within the rules.

Remaining 2026 Payment Dates

After July 29, there are still five more OAS and GIS payment dates left in 2026. These are set by the Government of Canada and released well in advance. Payments go out near the end of each month, usually on the last business day. Setting up direct deposit ensures you receive funds on the exact payment date without any mail delays.

The remaining confirmed payment dates for 2026 after July are August 27, September 25, October 29, November 26, and December 22. Mark these on your calendar now. Each of those payments will reflect whatever quarterly rate adjustment Service Canada applies for the August to October and November to January periods, based on CPI data available at that time.

For the full official schedule and to verify your payment history, visit the OAS payment dates page on canada.ca. If a payment is late or missing, wait five business days after the scheduled date before calling Service Canada, as this is their standard advice before opening a trace request.

Frequently Asked Questions

Does the 1.2% increase apply automatically?
Yes. Service Canada applies the quarterly increase to all eligible recipients automatically. You do not need to apply or call anyone.

Why did my GIS amount change this month?
July is the annual GIS reset month. Your new amount is based on your 2025 income as reported to the CRA. If your income went up last year, your GIS may have decreased.

What happens if I did not file my 2025 taxes?
Your GIS may have been paused or reduced starting this July. File your taxes as soon as possible. Once CRA processes the return, Service Canada will update your GIS and may issue retroactive payments.

I am above the clawback threshold. Can I reduce the amount withheld?
You can manage this through legal income-splitting strategies or by adjusting the timing of certain withdrawals. Speak with a financial planner who works with retirees for guidance specific to your situation.

Sources: Government of Canada (canada.ca), Employment and Social Development Canada / Service Canada. Last verified: July 28, 2026. This article is general information, not legal advice. Consult Service Canada or a qualified financial professional for guidance on your specific situation.

About Author