The GIS for lower-income seniors: amounts, income limits and planning

What the GIS is and who it's for

The GIS is part of the Old Age Security program. It is paid on top of the OAS pension to people living in Canada whose income is below a set limit. Unlike OAS, which depends on years of residence, the GIS depends on income — your own if you're single, and the couple's combined income if you have a spouse or common-law partner.

Because it is income-tested, the GIS rewards a close look at what counts as income. Two retirees with the same savings can receive very different GIS amounts depending on whether they draw from a RRIF or a TFSA. The OAS guide explains the base pension the GIS is added to.

The October–December 2026 amounts

GIS amounts are adjusted each quarter. These are the maximums for the October–December 2026 quarter; actual payments are lower for anyone with income above zero, and the amounts differ for other couple situations, such as when a spouse doesn't receive OAS.

How income is counted

The GIS is generally based on the previous year's income as reported on your tax return. For this purpose, Service Canada looks at your income excluding the OAS pension itself, so OAS doesn't reduce your GIS. Other income — CPP, workplace pensions, RRIF and RRSP withdrawals, interest and employment earnings — generally does.

Some employment and self-employment income is partly exempt from the GIS income test, and there are rules for people whose income drops sharply, such as after retiring. These details are specific, so confirm them with Service Canada before relying on them.

TFSA withdrawals are a key exception: they don't count as income, so they have no effect on OAS or GIS. That single rule shapes much of the planning around the GIS.

Because the GIS looks back at the previous year's income, a one-time event — selling an investment, a large RRIF withdrawal or a final year of employment — can reduce the GIS for a later payment period. The timing of such events deserves attention for anyone close to the income limit.

A worked example: Rosa in New Brunswick

Suppose Rosa, 71, is widowed and lives in Moncton. She receives $500 a month from the CPP ($6,000 a year) and the full OAS of $762.50 a month (October–December 2026 rate), or $9,150 a year at that rate. For GIS purposes, her income is the $6,000 of CPP, well under the $23,112 limit for a single person, so she would likely receive a partial GIS. Service Canada calculates the exact amount.

Her taxable income is $15,150. The calculator estimates about $140 of combined federal and New Brunswick tax, before the age amount and other credits it leaves out — so her actual tax could well be nil.

Now suppose Rosa needs $6,000 for a roof repair. If she takes it from a RRIF, her taxable income rises to $21,150, with estimated tax of about $1,361 before those credits. Just as important, the $6,000 is added to her income for the GIS test, which would reduce her GIS in the following benefit year. If she takes the same $6,000 from a TFSA, neither her tax nor her GIS changes.

Rosa's example shows why tax and GIS effects are worth looking at together. On paper, the extra $6,000 of RRIF income adds only about $1,222 to her estimated tax, but the reduction in her GIS would come on top of that. Service Canada can tell her how large that reduction would be.

Why RRSPs and TFSAs can compare differently for lower earners

The usual RRSP-versus-TFSA comparison looks only at tax rates now and later. For someone who expects to receive the GIS, the "later" cost of an RRSP dollar can include both income tax and a lower GIS.

To show the effect, suppose Tomas, 58, has a 20% marginal tax rate and assumes — purely as an illustration — that tax plus reduced benefits would take 40% of each RRIF dollar he later withdraws. Putting $5,000 of pre-tax income into an RRSP for 10 years at an illustrative 4% return would leave about $4,441 after that 40%. Taking the same income, paying 20% tax and putting $4,000 into a TFSA would grow to about $5,921, with no tax or benefit effect on withdrawal.

The 40% figure is an assumption, not a GIS rule; the real effect depends on your income and on Service Canada's calculations. Our RRSP vs TFSA guide and the RRSP vs TFSA tool let you test other rates.

Planning questions near the income limit

For people whose income sits close to the GIS limits, a few recurring questions come up:

• RRSP withdrawals before 65. Some people with modest RRSPs draw them down in their early 60s, before OAS and the GIS begin, so that less taxable income remains later. Whether that helps depends on tax in those years and on the GIS they expect.
• CPP timing. CPP counts as income for the GIS. Deferring CPP to 70 raises it by 42%, but part of that increase may be offset by a lower GIS. The CPP start age tool shows the CPP side of the trade-off.
• Part-time work. Some employment income is partly exempt from the GIS income test, so a modest amount of work may affect the GIS less than the same amount from a RRIF. Confirm the current exemption with Service Canada.
• Savings and home equity. The GIS is based on income, not assets, so owning a home or having savings doesn't by itself reduce it — only the taxable income those assets produce does.

Applying, renewing and couples

Some people are enrolled in the GIS automatically when they start OAS, and others need to apply — check your letter from Service Canada. Filing a tax return every year, even with little or no income, is generally how the GIS is renewed. For couples, both spouses usually need to file.

Couples are assessed on combined income, and the amounts depend on whether one or both spouses receive OAS. Life changes such as separation or a spouse's death can change the calculation, so tell Service Canada when your situation changes. The couples page covers the wider picture.

Deferring OAS has a particular cost for GIS recipients: the GIS is not paid for months when OAS is deferred. Our guide to deferring OAS explains the trade-off.

Provincial supplements and where to check next

Several provinces and territories offer their own income-tested supplements or credits for seniors, often linked to GIS eligibility. The provincial benefits hub lists programs by province, including the New Brunswick page for Rosa's example.

For questions about your own GIS, Service Canada is the authority. The OAS and GIS FAQ answers common questions in plain language.