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GIS and low-income supplements, in plain terms

If your retirement income is low, the federal government tops up OAS with extra, tax-free money. Here is how the Guaranteed Income Supplement (GIS) and related programs work.

The basics

  • •GIS is a monthly top-up paid on top of OAS, for seniors with very low income.
  • •You must already be receiving OAS to qualify for GIS — it is an add-on, not a stand-alone benefit.
  • •GIS is not taxable — it does not show up as income on your tax return and does not push you into a higher bracket.
  • •The amount you get depends on your annual income (and your spouse's, if you have one), and your marital status.

How the reduction works

  • •For a single, widowed, or divorced senior, GIS drops by about $1 for every $2 of other income above a small base.
  • •That is a 50% effective "tax" on extra income — far steeper than the OAS clawback's 15%.
  • •Married couples where both receive OAS get a smaller per-person GIS; couples where only one gets OAS fall under the Allowance rules.
  • •Once your income passes the cutoff, GIS goes to zero — there is no partial payment above the limit.

How much GIS pays (2025)

  • •The maximum GIS is paid only when your other income is near zero — roughly $1,037/month (~$12,440/yr) for a single, widowed, or divorced senior.
  • •For a married senior whose spouse also gets OAS, the max is about $624/month each (~$7,490/yr each).
  • •For a senior whose spouse does not yet get OAS, the max is about $624/month for the pensioner, plus a separate Allowance for the younger spouse.
  • •GIS amounts are indexed quarterly (January, April, July, October) to the CPI, so the numbers move a little through the year.

Is there a limit? Yes — an income cutoff

  • •GIS phases down to zero at an income cutoff that depends on your status (2025, approximate):
  • –Single / widowed / divorced: about $21,456 of annual income (excluding OAS and GIS).
  • –Couple, both receiving OAS: about $28,656 of combined income.
  • –Couple, only one receiving OAS: about $41,376 of combined income (the higher limit covers the spouse's Allowance too).
  • •Above your cutoff, GIS is $0 — there is no minimum floor or partial payment past the line.
  • •The cutoffs rise a little each year with indexation, but the shape stays the same: full GIS at ~$0 income, then a straight line down to zero.

What counts against GIS

  • •CPP, pensions, RRSP/RRIF withdrawals, and most investment income all count and reduce your GIS.
  • •TFSA withdrawals do not count — they are tax-free and never reported as income, so they can fund spending without touching GIS.
  • •OAS itself and GIS itself are excluded from the income test that sets your GIS.
  • •Even a one-time RRSP cash-out in a year can wipe out your GIS for that entire year.

Related programs

  • •The Allowance helps the spouse (aged 60–64) of a GIS recipient — paid until the younger spouse turns 65 and qualifies for OAS.
  • •The Allowance for the Survivor is for low-income widows/widowers aged 60–64.
  • •Provinces add their own seniors' supplements and property-tax deferral programs, which often piggyback on GIS eligibility.

Why it matters for planning

  • •If you are near the GIS line, which account you draw from matters more than how much you earn — TFSA keeps GIS, RRSP kills it.
  • •Because the reduction is so steep, a small extra RRIF withdrawal can cost more in lost GIS than it adds in cash.
  • •Deferring CPP and OAS can lower your income in the gap years and help you qualify for GIS in your early 60s.
  • •GIS is re-assessed every July based on your prior year's tax return — so a spike this year reduces GIS next July.

Good to know

  • •You must apply for GIS — it is not automatic. If you file your taxes on time, it usually renews automatically each year after that.
  • •GIS is aimed at the lowest-income seniors; most people with meaningful RRSP/pension savings will not qualify.
  • •The Income Sequencer does not model GIS dollar-for-dollar, but it shows your taxable income each year so you can see when you might fall into the low-income range.

See your income range

Open the Income Sequencer and check your yearly taxable income against the GIS thresholds.

Try the Tool