What income can be split with my spouse?

Eligible pension income. That means life-annuity payments from a registered pension plan at any age, and from the year you turn 65, RRIF and LIF withdrawals and RRSP annuity payments. CPP, OAS, RRSP lump-sum withdrawals and foreign pensions exempt by treaty never qualify. You can move up to 50% of the eligible amount.

Is splitting 50% always best?

No. Moving income helps only while the receiving spouse's tax rate on the extra dollar is lower than the transferring spouse's rate on the last dollar. Once the receiver reaches the same bracket, or crosses the $95,323 OAS recovery threshold, more splitting costs money. In the worked example above a 50% split costs about $3,500 more than the best one. The guide Pension income splitting and CPP pension sharing has two worked couples.

How does splitting affect the OAS clawback?

The OAS recovery tax is 15% of net income above $95,323 for 2026 income. Splitting lowers the transferor's net income and can end their clawback. It raises the receiver's and can start one, so the optimiser scores both. The repayment is deductible, so its true cost is a little under 15%.

Does my spouse have to be 65 to receive split pension income?

No. The age test applies to the transferring spouse's income type, not to the receiver. A 62-year-old can receive split pension income. The receiver can claim the pension income amount on up to $2,000 of the transfer if it qualifies for them: any employer-pension annuity income, or RRIF income only once they are 65. The transferring spouse claims the pension amount on what is left.

How do we actually do it on the return?

Both spouses complete and sign Form T1032, Joint Election to Split Pension Income, and file it with both returns. The transferor deducts the amount on line 21000. The receiver reports it on line 11600. Tax withheld on the pension is split in the same proportion on line 43700. You make the election every year and can use a different percentage each year.

Quebec allows the provincial split only when the transferring spouse is 65 or older at the end of the year (line 123 and Schedule Q of the Quebec return). Below 65 only the federal return benefits, and the calculator computes the Quebec tax without the split. Quebec's own age and retirement-income credits are not modelled.

Can we change our minds later?

Yes. The CRA accepts a late, amended or revoked election up to three calendar years after the filing due date for that year. You need a new jointly signed T1032, or a signed letter to revoke. Both spouses must agree.

Pension Income Splitting Calculator (Optimiser, 2026)

Find the pension income split that saves your household the most tax. Enter each spouse's pension, RRIF, CPP, OAS and other income. The optimiser tests every split from 0% to 50% with 2026 federal and provincial tax, the age and pension amounts and the OAS recovery tax, and reports the best one.

Best: Spouse A moves 17% to Spouse B$2,246saved this year in income tax and OAS recovery tax by moving $17,000 of pension income. Anything from 15% to 29% is within $25 of the best, so any split in that band works. Without splitting the couple pays $47,856. At the best split it pays $45,610, and at a full 50% split $49,065, so the "always split 50%" rule of thumb would cost $3,455 more.

Combined income tax plus OAS recovery tax

Combined tax at every split from 0% to 50% of Spouse A's $100,000 of eligible pension income.

	No split	Best (17%)	50%
Spouse A income tax	$28,475	$23,058	$13,002
Spouse A OAS recovery tax	$4,474	$1,924	$0
Spouse B income tax	$14,907	$20,204	$30,689
Spouse B OAS recovery tax	$0	$424	$5,374
Credits moved between spouses	$0	$0	$0
Total	$47,856	$45,610	$49,065

Each spouse, before and after

Spouse A	No split	Best split
Net income (line 23400)	$125,150	$108,150
Age amount	$0	$239
Pension income amount	$2,000	$2,000
Income tax	$28,475	$23,058
OAS recovery tax	$4,474	$1,924
Total	$32,949	$24,982

Spouse B	No split	Best split
Net income (line 23400)	$81,150	$98,150
Age amount	$4,000	$1,514
Pension income amount	$2,000	$2,000
Income tax	$14,907	$20,204
OAS recovery tax	$0	$424
Total	$14,907	$20,628

The best split takes Spouse B over the $95,323 OAS threshold. That still wins because the recovery tax is deductible. Every split in the 15% to 29% band takes them over it.

How to claim. Both spouses sign Form T1032 (Joint Election to Split Pension Income) every year it is used. The transferor deducts the amount on line 21000 and the receiver reports it on line 11600. Tax withheld on the pension is allocated in the same proportion (line 43700), and the pension income amount on line 31400 follows Step 4 of the form. The percentage can change every year and can be amended within three years.

Show the math

For every split from 0% to 50% in 1% steps, each spouse's net income is recalculated (pension, RRIF, CPP, OAS, other income, dividends grossed up 38%, 50% of capital gains), the OAS recovery tax is 15% of net income above $95,323 up to the OAS received, and that repayment is deducted from taxable income (line 23500). Federal and provincial tax then come from the 2026 tables with the basic personal amount, the age amount ($9,208 less 15% of net income above $46,432, from 65) and the pension income amount (up to $2,000 federally and $1,796 in Ontario). Unused age and pension amounts move to the other spouse (Schedule 2). The score is the couple's combined income tax plus OAS recovery tax. The best split is the lowest score, shown as a range when neighbouring splits are within $25. Provincial age amounts are not modelled (no verified 2026 figures), which slightly understates the credit side for seniors under about $90,000 outside the federal calculation.

What you need to know for 2026

You can move up to 50% of eligible pension income to a spouse on Form T1032. Employer-pension annuities qualify at any age. RRIF, LIF and RRSP-annuity income qualifies from age 65. CPP and OAS never qualify.
The age amount for 2026 is $9,208 from age 65. It is reduced by 15% of net income above $46,432 and gone at $107,819. It is worth $1,289 federally at the 14% rate.
The pension income amount is up to $2,000 federally ($280 of tax) and $1,796 in Ontario. The receiving spouse can claim it on transferred pension income that qualifies for them.
OAS recovery tax on 2026 income is 15% of net income above $95,323. The whole pension is gone at $155,109 (65 to 74). Splitting changes both spouses' net income, so it can end one clawback and start another.
Unused age and pension amounts transfer to the other spouse (Schedule 2), so a low-income spouse's credits are never wasted. The optimiser counts them.
Quebec allows the provincial split only when the transferring spouse is 65 or older. Federally there is no age test on the receiver.

How this calculator works

This page finds the best split. The guide, Pension income splitting (Form T1032) and CPP pension sharing, explains what qualifies and how the election works.

For every split from 0% to 50% in 1% steps, the optimiser rebuilds both returns:

Net income for each spouse after the transfer: pension, RRIF, CPP, OAS, other income, eligible dividends at 38% gross-up and 50% of capital gains.
OAS recovery tax: 15% of net income above $95,323 (2026 income), up to the OAS received. The repayment is then deducted from taxable income.
Income tax from the 2026 federal and provincial tables, with the age amount ($9,208, reduced by 15% of net income over $46,432, from age 65) and the pension income amount (up to $2,000 federally, $1,796 in Ontario). Unused age and pension amounts of one spouse transfer to the other (Schedule 2).

The best split is the one with the lowest combined bill. When neighbouring splits are within $25 of it, the tool reports the whole range, because the curve is often flat and the exact percentage matters less than staying in the band.

Worked example: $100,000 pension vs $60,000 pension, Ontario

Spouse A (68) has a $100,000 employer pension, $16,000 of CPP and $9,150 of OAS. Spouse B (66) has a $60,000 pension, $12,000 of CPP and the same OAS.

	No split	Best split (17%, $17,000)	50% split
Spouse A income tax	$28,475	$23,058	$13,002
Spouse A OAS recovery tax	$4,474	$1,924	$0
Spouse B income tax	$14,907	$20,204	$30,689
Spouse B OAS recovery tax	$0	$424	$5,374
Combined	$47,856	$45,610	$49,065

Splitting 17% saves $2,246. Anything from 15% to 29% is within $25 of that. A full 50% split would cost $3,455 more than the best, because it pushes Spouse B’s net income to $131,150, well over the $95,323 OAS threshold.

Assumptions

Both spouses live in Canada and together on December 31. Each is taxed as an individual with only the credits listed above (no disability, medical, donation or spousal amounts).
Provincial and territorial age amounts are not modelled. The pension income amount is modelled only for Ontario outside the federal credit, because no other 2026 provincial figure was verified against a primary source.
The age amount is reduced using taxable income as the net-income measure. For a spouse in OAS recovery territory the age amount is already nil or close to it.
GIS, the spouse or common-law partner amount, and provincial seniors’ benefits that depend on one spouse’s net income are not scored.
Quebec: the provincial split is applied only when the transferor is 65 or older. Quebec’s own credits are not modelled.

How to split pension income on your returns

One joint form, signed by both of you, filed with both returns, every year you use it. Twenty minutes at tax time.

Before filingCheck what qualifies. Employer-pension annuities qualify at any age. RRIF, LIF and RRSP-annuity income qualifies only from the year the transferring spouse turns 65. CPP, OAS and RRSP lump sums never qualify. You must be living together on December 31 and both resident in Canada.CRA: Pension income splitting ↗
Before filingPick the percentage from the calculator above (the low end of the range if one of you is near the OAS threshold). It can be different every year.
With both returnsComplete Form T1032, Joint Election to Split Pension Income. Both spouses sign it. The same form goes with both returns. Tax software handles it, but both of you must still sign the copy you keep.Form T1032 ↗
With both returnsThe transferring spouse deducts the elected amount on line 21000. The receiving spouse reports it on line 11600. Step 4 of the T1032 sets the pension income amount on line 31400 for each of you. Step 5 splits the tax withheld on the pension to line 43700 in the same proportion.Line 31400, pension income amount ↗
With the Quebec returnQuebec allows the provincial split only if the transferring spouse was 65 or older at the end of the year. Complete Schedule Q and report the transferred amount on line 123 of the receiving spouse's Quebec return.Revenu Québec: line 123 ↗
After the notice of assessmentCheck both notices. The receiver's net income rose, so their OAS recovery tax, GST/HST credit and any provincial seniors' benefit may change. If the split was wrong, a new jointly signed T1032 can amend it up to three years after the filing due date.

Common questions

Frequently asked questions

What income can be split with my spouse?: Eligible pension income. That means life-annuity payments from a registered pension plan at any age, and from the year you turn 65, RRIF and LIF withdrawals and RRSP annuity payments. CPP, OAS, RRSP lump-sum withdrawals and foreign pensions exempt by treaty never qualify. You can move up to 50% of the eligible amount.
Is splitting 50% always best?: No. Moving income helps only while the receiving spouse's tax rate on the extra dollar is lower than the transferring spouse's rate on the last dollar. Once the receiver reaches the same bracket, or crosses the $95,323 OAS recovery threshold, more splitting costs money. In the worked example above a 50% split costs about $3,500 more than the best one. The guide Pension income splitting and CPP pension sharing has two worked couples.
How does splitting affect the OAS clawback?: The OAS recovery tax is 15% of net income above $95,323 for 2026 income. Splitting lowers the transferor's net income and can end their clawback. It raises the receiver's and can start one, so the optimiser scores both. The repayment is deductible, so its true cost is a little under 15%.
Does my spouse have to be 65 to receive split pension income?: No. The age test applies to the transferring spouse's income type, not to the receiver. A 62-year-old can receive split pension income. The receiver can claim the pension income amount on up to $2,000 of the transfer if it qualifies for them: any employer-pension annuity income, or RRIF income only once they are 65. The transferring spouse claims the pension amount on what is left.
How do we actually do it on the return?: Both spouses complete and sign Form T1032, Joint Election to Split Pension Income, and file it with both returns. The transferor deducts the amount on line 21000. The receiver reports it on line 11600. Tax withheld on the pension is split in the same proportion on line 43700. You make the election every year and can use a different percentage each year.
What about Quebec?: Quebec allows the provincial split only when the transferring spouse is 65 or older at the end of the year (line 123 and Schedule Q of the Quebec return). Below 65 only the federal return benefits, and the calculator computes the Quebec tax without the split. Quebec's own age and retirement-income credits are not modelled.
Can we change our minds later?: Yes. The CRA accepts a late, amended or revoked election up to three calendar years after the filing due date for that year. You need a new jointly signed T1032, or a signed letter to revoke. Both spouses must agree.

Tax-saving strategies that use this calculator

Pension Income Splitting in Canada (2026)Move up to half of eligible pension income to your spouse on Form T1032, what qualifies at 65 and before, the OAS clawback, and why 50% is often too much.

Sources

Every figure on this page comes from one of these primary sources. Data last verified September 7, 2026.

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Data verified for tax year 2026: September 7, 2026 Updated September 11, 2026 By Nishant Malik, founder of GlassLayer