How much does GIS drop for each dollar of income?

For a single person, roughly 50 cents of GIS for every dollar of other income, rising to about 75 cents per dollar in the lower income band where the GIS top-up is also being reduced. For a couple where both receive OAS, roughly 25 cents per spouse for every dollar of combined income. These are among the highest effective marginal rates in the Canadian tax system, and they apply to people with the least income.

Does taking CPP early help protect GIS?

It can, and this is one of the few situations where the standard advice to delay CPP is wrong. CPP counts in full against GIS at roughly 50 cents on the dollar for a single person, so a larger CPP pension from delaying to 70 can be substantially clawed back through lost GIS. If GIS will be a meaningful part of your retirement income, model both paths before deciding — and speak to a benefits counsellor.

No. GIS is non-taxable, though you must still report it on your return. You also have to file a tax return every year to keep receiving it — the most common reason people lose GIS is simply not filing, which stops payments the following July.

GIS Calculator

The Guaranteed Income Supplement pays a single senior up to $1,123.17 a month — but almost every other dollar you receive takes 50 to 75 cents of it away. Enter your income to see your estimated GIS, how close you are to losing it, and exactly what your next $1,000 of RRIF income really costs.

Which income eats your GIS fastest? → Read the GIS decision guide.

Your situation

CPP income (annual)

Counts in full against GIS.

Pension, RRSP & RRIF withdrawals (annual)

Workplace pensions and every dollar withdrawn from an RRSP or RRIF.

Investment & other income (annual)

Interest, dividends, taxable capital gains, rent. TFSA withdrawals don't count.

Employment / self-employment (annual)

First $5,000 fully exempt, next $10,000 half exempt.

Estimated GIS, per month $— —

GIS per year$—

Income counted for GIS$—

Maximum GIS for your situation$—

Income headroom before GIS ends$—

OAS + GIS, per month$—

Your next $1,000 of RRIF income — —

$0——

—

How GIS works

The Guaranteed Income Supplement is a non-taxable monthly top-up for Old Age Security recipients with low income. You must already be receiving OAS to get it, and it is tested against your income from the previous calendar year — with your OAS pension itself excluded from that income.

Current maximums and cut-offs, July to September 2026:

Situation	Maximum / month	Income cut-off
Single, widowed or divorced	$1,123.17	$22,800
Spouse receives full OAS	$676.09 each	$30,096 combined
Spouse receives the Allowance	$676.09	$42,144 combined
Spouse receives no OAS	$1,123.17	$54,624 combined

These amounts are re-indexed every January, April, July and October, so the figures on this page are replaced four times a year.

The reduction rate is the real story

GIS falls as your other income rises, and it falls fast. For a single person the headline rate is 50 cents of GIS lost per dollar of income — but in the lower income band, where the GIS top-up component is also being withdrawn, the combined rate reaches about 75 cents per dollar.

single: ~75¢ lost per $1 on the first ≈$8,300 of income
~50¢ lost per $1 above that, until GIS reaches $0 at $22,800
couple, both on OAS: ~25¢ per spouse per $1 of combined income

Stack that on top of ordinary income tax and you get effective marginal rates of 60–80% — higher than anything a top earner pays, imposed on people with the least money. This is the single most important and least understood fact in Canadian retirement planning for lower-income seniors, and it is why generic advice like "always delay CPP to 70" can be actively wrong for someone who will receive GIS.

The one exemption that exists is for work: the first $5,000 of employment or self-employment income is fully exempt, and half of the next $10,000 is exempt too. Earn $15,000 and only $5,000 counts. No other income type is treated this generously — a dollar of RRIF withdrawal costs you far more GIS than a dollar of wages.

Worked example: a single senior with $9,000 of CPP

Line		Amount
Income counted	CPP only; OAS excluded	$9,000
Reduction, first $8,312	× 75%	−$6,234
Reduction, remaining $688	× 50%	−$344
Annual GIS	$13,478 − $6,578	$6,900
Monthly GIS	÷ 12	$575
OAS + GIS per month	$751.97 + $575	$1,327

Now the part that matters for planning: this senior's next $1,000 of RRIF withdrawal costs them $500 of GIS. Because GIS is non-taxable and the withdrawal is taxable, they keep only a few hundred dollars of that $1,000 — an effective rate well above 50% on someone living on about $16,000 a year. Taking the money from a TFSA instead would cost them nothing at all.

GIS questions, answered

What income counts toward GIS?

Nearly everything except OAS: CPP, workplace pensions, RRSP and RRIF withdrawals, interest, dividends, taxable capital gains, rental income, and employment income above the exemption. Your OAS pension and the GIS itself are excluded. TFSA withdrawals are invisible to the test.

How much does GIS drop per dollar of income?

Roughly 50 cents per dollar for a single person, rising to about 75 cents in the lower band where the GIS top-up is also withdrawn. For a couple both on OAS, roughly 25 cents per spouse per dollar of combined income.

Can I work and still receive GIS?

Yes. The first $5,000 of employment or self-employment income is fully exempt and half of the next $10,000 is exempt, so $15,000 of earnings counts as only $5,000. This is the most generous treatment in the whole GIS system.

Should I still delay CPP to 70 if I'll receive GIS?

Often not. A bigger CPP cheque counts in full against GIS at roughly 50 cents on the dollar for a single person, so much of what you gain by waiting is taken back. Some people are better off starting CPP earlier, or drawing down an RRSP before 65 so their RRIF minimums are smaller later. This interaction is genuinely complicated — talk to a Service Canada benefits counsellor before deciding.

Is GIS taxable?

No, though you report it on your return. You must file a tax return every year to keep receiving it — failing to file is the most common reason payments stop, and they stop the following July.

Do I have to apply?

Many people are enrolled automatically and receive a letter. If you don't get one, you must apply. If your income has just dropped because you retired or stopped a pension, you can ask Service Canada to use an estimate of your current income instead of last year's.

What if I live outside Canada?

GIS stops after you have been outside Canada for six consecutive months, regardless of how long you lived here. OAS may continue; GIS does not.

Method and sources

Service Canada does not publish a single formula — GIS is paid from quarterly tables in $48 annual income steps. This tool models the benefit as a two-band reduction calibrated so that it reproduces exactly both published anchors for your situation: the maximum payable at zero income, and the income at which GIS reaches zero. Where the published figures do not support a distinct top-up band, a single straight-line rate is used instead. Expect the result to be close but not to the dollar; confirm your own entitlement with Service Canada.

Employment income is reduced by the $5,000 full exemption plus 50% of the next $10,000 before being counted. OAS is excluded from counted income, as are TFSA withdrawals. Couples are tested on combined income, and the figure shown is the amount for one spouse.

Amounts are the July–September 2026 quarter from Canada.ca — GIS: how much you could receive, with eligibility rules from Canada.ca — GIS eligibility. GIS is re-indexed each January, April, July and October.