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The Guaranteed Income Supplement (GIS) is available to those age 65 or older living in Canada, who are receiving the Old Age Security (OAS) pension, but only if income is below the annual thresholds for the GIS based on marital status.

OAS is Taxable But GIS and Allowances are Tax-Free

Income from OAS is taxable, but income from GIS, the Allowance, and the Allowance for the Survivor is tax-free.

However, GIS & Allowances are included in Total Income for Tax Purposes and Net Income for Tax Purposes, and are later deducted so they are not included in Taxable Income. See our article on Taxable Income for an explanation of how this affects your income tax and income-tested benefits.

GIS Exemption / OAS and GIS Estimator

The exemption amount was increased from $3,500 to $5,000 by the Federal 2019 Budget and the exemption is extended to self-employment income beginning with the July 20-21 benefit year. The amendments also include a partial exemption of 50% to apply on up to $10,000 of annual employment and self-employment income beyond the new threshold of $5,000 for each GIS or Allowance recipient, as well as their spouse. This increases the maximum total exemption for employment and self-employment income to $10,000 per person.

The amount of GIS payable depends on marital status and total income for the prior year. Total income for GIS purposes is net income for tax purposes from line 23600 of the personal income tax return, less

	OAS and GIS income
	your first $5,000 of employment or net self-employment income, and 50% of the next $10,000 of your employment or net self-employment income.

If you have a spouse or common-law partner, this calculation is done separately for each person, and the exemptions are not transferable.

To get an estimate of your OAS and GIS see the Old Age Security Benefits Estimator.

GIS Exemption and Clawback Examples

The following examples apply starting with the July 20-21 benefit year:

Senior with $4,000 of employment income plus net self-employment income less CPP and QPP contributions and EI premiums would have an exemption of $4,000, and thus would have no clawback.

Senior with $8,000 of employment income plus net self-employment income less CPP and QPP contributions and EI premiums:

exemption of $6,500 ($5,000 + $1,500*).

*$1,500 is the lesser of $5,000 and 50% x ($8,000 - $5,000).

excess subject to clawback is $8,000 - $6,500 = $1,500.

GIS would be be clawed back by $750, which is 50% x $1,500.

Senior with $16,000 of employment income plus net self-employment income less CPP and QPP contributions and EI premiums:

exemption of $10,000 ($5,000 + $5,000*).

*$5,000 is the lesser of $5,000 and 50% x ($16,000 - $5,000).

excess subject to clawback is $16,000 - $10,000 = $6,000.

GIS would be clawed back by $3,000, which is 50% x $6,000.

CERB/CRB/CRCB/CRSB Payments and the GIS Exemption

A senior receiving GIS, who would have had up to a $10,000 exemption for employment and self-employment earnings, but who instead received only CERB, CRB, CRCB, CRSB or CESB, would have lost their exemption, because these earnings were classified as "Other income" and reported on line 13000, not classified as employment or self-employment earnings.

Employees who had their wages subsidized by the Canada Emergency Wage Subsidy (CEWS) were not affected, as it was the employer receiving the subsidy, not the employee.

GIS Eligibility Based on Income

The following would be eligible to receive GIS for July to September 2023:

	single persons with total income less than $21,168.
	married/common-law couple, both OAS pensioners, with combined total income less than $27,984.
	OAS pensioners whose spouse/common-law partner is not receiving OAS, with combined annual income less than $50,736.

OAS and GIS Payment Amounts

For July to September 2023, the maximum combined monthly payment from OAS plus GIS is $1,742.05 ($698.60 OAS + $1,043.45 GIS) per month, for a single person age 65 to 74. The total is $1,811.91 for those age 75+ This maximum is reached if there is no income other than OAS and GIS. The $1,043.45 GIS includes the top-up.

For current thresholds and payment amounts see the Old Age Security Payment Amounts to get an idea of how much you might receive from OAS and GIS.

For current and previous thresholds and payment amounts see the Canada Pension Plan/Old Age Security quarterly reports.

GIS Top-up (Additional Amount)

Old Age Security Act Part II s. 12.1

The Federal 2016 Budget was followed by Bill C-15 to increase the Guaranteed Income Supplement (GIS) top-up benefit for single seniors by up to $947 annually ($78.92 monthly) starting in July 2016, more than doubling the current maximum GIS top-up benefit. Single seniors with annual income (other than OAS and GIS supplement benefits) of about $8,816 or less at that time would receive the full increase. The $8,816 is after exemptions are deducted.

The top-up amount is increased for indexation in the same manner as the OAS pension amount is increased.

Applying for OAS and GIS

Proactive enrolment for OAS and GIS was implemented in a phased-in approach from 2013 to 2016, so that applying is no longer necessary for most people. Some people still must apply for the OAS and GIS. If you can be automatically enrolled, Service Canada will send you a notification letter the month after you turn 64. See Applying for the Old Age Security on the Service Canada website.

Form ISP3025 is the application form for GIS, which requires very little input.

Form ISP3550 is the application form for OAS and GIS. Form ISP-3055A is a Reference Guide for the application for the OAS pension and the GIS, found on the same web page as the link to ISP3550.

For more information, see Guaranteed Income Supplement on the Service Canada website.

GIS Application, Adjustments Based on Income

The Federal Guaranteed Income Supplement (GIS) is available to low-income seniors living in Canada, who are receiving (or are eligible to receive) the Old Age Security Pension (OAS). An application may have to be filed to receive this supplement if you are already receiving your OAS pension and have not previously applied for the GIS.

Once a person is receiving the GIS, it will be automatically adjusted each year after the income tax return is filed. However, if there is a reduction in your pension, employment or self-employment income, Service Canada may calculate your GIS benefit by estimating your pension and employment income for the current year, instead of using last year's pension and employment income. If you or your spouse or common-law partner have a lower income this year for these or other reasons, see "If your income changes" on the Canada.ca While receiving GIS page. Your benefits may increase.

Capital Gains Can Reduce Your GIS

Yes, this is true even if you have capital losses carried forward that will eliminate the capital gains, and is also true of the age amount clawback. This is because the GIS amount payable is calculated based on your net income before adjustments on line 23400 (line 234 prior to 2019) of your tax return. The capital losses (and non-capital losses) carried forward are deducted after this, on line 25300 (line 253 prior to 2019). The total taxable income is on line 26000 (line 260 prior to 2019) of your tax return. See our article on how to calculate Total Income For Tax Purposes, Net Income For Tax Purposes, and Taxable Income.

Allowance (ALW)

The Allowance is available to 60 to 64 year old spouses/common-law partners of OAS pensioners who receive the Guaranteed Income Supplement (GIS). The Allowance is available for July to September 2023 when combined annual income of both spouses (excluding OAS and GIS) is less than $39,168.

The Allowance must be applied for. For more information, see Allowance Program on the Service Canada website.

Allowance for the Survivor (ALWS)

The Allowance for the Survivor may be available if your spouse or common-law partner has died and you are 60 to 64 years old. This allowance is available for July to September 2023, when annual income (again, excluding OAS and GIS, etc.) is less than $28,512. See the Service Canada web page on The Allowance for the Survivor.

Income from the Allowance is tax-free.

Allowance - Change in eligibility age

This was rescinded.

Involuntary Separation

The 2016 Budget also brought in higher benefits to senior couples who are living apart for reasons beyond their control, when they are recipients of GIS and the Allowance, by basing the benefits on their individual incomes. This situation is known as involuntary separation, and the new treatment became effective January 1, 2017. An example is when one spouse moves to long term care. Eligible GIS/Allowance recipients must advise Service Canada of their situation by submitting the Statement - Spouses or Common-law Partners Living apart for Reasons Beyond their Control.

The Budget also announced that the Government is looking at how a new Seniors Price Index that reflects the cost of living faced by seniors could be developed to be used as the index for increasing the OAS and GIS.

2020 One-Time Tax-Free Payments of OAS and GIS

On May 12, 2020, the Prime Minister announced a one-time tax-free payment of $300 for seniors eligible for the Old Age Security pension, with an additional $200 for seniors eligible for the GIS. This meant, of course, that high-income seniors also received the $300 additional OAS payment. Seniors eligible to receive the OAS or GIS in June 2020 were eligible to receive the tax-free payment. As per a June 4, 2020 announcement, the payment was paid during the week of July 6, 2020. See all COVID-19 Financial Relief Resources.

Revised: October 26, 2023