Pension Income Splitting Calculator
Find the pension split between spouses that leaves the least combined tax and OAS clawback for 2026. Tries every amount in both directions.
Want this number lower?
The Lower My Tax report takes these numbers, tests every legal way to cut the bill, and shows the saving of each in dollars, with what to do and by when.
The short version
- Enter both spouses' retirement income. The calculator tries every split from $0 to the legal maximum, in both directions, and shows the amount that leaves the lowest combined tax and OAS clawback for 2026.
- You can split up to half of eligible pension income: employer pension at any age, RRIF and LIF income from 65.
- Example, Ontario: $90,000 of pension plus CPP and OAS on one side, only CPP and OAS on the other. The best split is about $42,150, saving about $8,320 a year.
- The best split is often not 50% and not "equal incomes". Credits, the clawback and provincial quirks move it.
- Both spouses sign form T1032 and enter the same amount on both returns. You choose again every year.
Pension Income Splitting Calculator
Most couples split pension income by guessing: half, or whatever makes the two incomes match. Both guesses are usually close and rarely right, because the age amount, the pension credit and the OAS clawback all turn on at different lines. Tax software finds the best number for you at filing time. This calculator finds it in March, or in September, when you can still change how much you take out of the RRIF.
Three Provinces, One Couple (2026)
| Province | Combined tax, no split | Best split | Combined tax after | Saved per year |
|---|---|---|---|---|
| Ontario | $26,884 | $42,150 | $18,564 | $8,320 |
| British Columbia | $25,591 | $42,150 | $17,755 | $7,836 |
| Alberta | $26,530 | $44,740 | $17,779 | $8,751 |
One spouse, 70: $90,000 employer pension, $13,000 CPP, $9,500 OAS. The other, 68: $7,000 CPP and $9,500 OAS. Totals include the OAS clawback, which the higher earner pays before splitting and avoids after. The full rules and what counts are on pension income splitting; everything else about retirement tax is on taxes in retirement.
Want the split worked out with your real slips?
Tell the assistant both incomes, ages and province, and what each of you has withheld. It finds the best split, fills in the T1032 numbers, and shows each return's refund or balance.
What Can Be Split
| Income | Splittable? |
|---|---|
| Registered pension plan (employer pension) payments | Yes, at any age |
| RRIF, LIF, and RRSP annuity payments | From the year the pensioner turns 65 |
| CPP | No. CPP can be shared through Service Canada instead. |
| OAS, GIS | No |
| RRSP lump withdrawals, interest, dividends, rent | No |
A spouse under 65 who receives split RRIF income can't use it for their own pension credit; only split employer pension income counts for them. The calculator applies that rule. The credit itself: pension income amount; the age amount: age amount.
Using the Result
- Before filing: both of you complete form T1032 with the same elected amount. The pensioner deducts it on line 21000; the spouse adds it on line 11600.
- Tax withheld moves too, in the same proportion as the income, so check both refunds, not one.
- During the year: if splitting pushes your spouse into owing, ask the RRIF or pension to withhold more, or expect an instalment notice; see RRIF withdrawals.
- Mind the clawback: a split that drops the higher earner below about $95,323 of net income saves OAS too; see the OAS clawback calculator.
- Plan the RRIF too: splitting works best with a RRIF from 65; see RRSP to RRIF and the RRSP meltdown.
- Single-spouse view: for one person's tax with a given split, use the retirement income calculator.
Pension Splitting Calculator Questions
How much pension income can I split with my spouse?
Up to 50% of your eligible pension income. Employer pension payments are eligible at any age; RRIF, LIF and annuity payments are eligible from the year you turn 65. CPP and OAS cannot be split on the return.
Is splitting 50% always best?
No. The best amount depends on both incomes, the age and pension credits, the OAS clawback and provincial rules. It is often somewhere below 50%, and occasionally zero.
Can my spouse under 65 receive my split RRIF income?
Yes, you can split RRIF income once you are 65, whatever your spouse’s age. But a spouse under 65 can claim the pension income credit only on split income that came from an employer pension, not from a RRIF.
Does pension splitting move the tax withheld?
Yes. Tax withheld on the pension moves to the receiving spouse in the same proportion as the split income.
Do I have to split the same amount every year?
No. You elect a new amount each year on form T1032, filed with both returns.
Sources: CRA, Form T1032, Joint election to split pension income; TaxTips.ca, T1032 step 4, transferee under 65; Service Canada, OAS recovery tax. Checked October 2026. Figures come from our 2026 rules engine with the age amount, pension income amount and basic personal amounts; the spousal amount, medical, disability and donation credits, and GIS are not included. Results for a year of marriage or separation, or a spouse who died in the year, need adjustment.
Last reviewed October 5, 2026 against CRA and Government of Canada sources. How we check our facts.