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Retirement · 2026 calculator

Pension income splitting calculator

Move up to 50% of eligible pension income to your spouse and the couple’s tax bill can drop. Enter both incomes and we’ll find the split that saves the most — using the same verified 2026 brackets as our income tax calculator.

Brackets verified at canada.ca / CRA · 2026-06-13

Your numbers

Spouse A (has the pension to split)

Spouse B (receives the split)

Combined tax saved by splitting
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Without splitting
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At the optimal split
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Frequently asked questions

What is pension income splitting in Canada?
It lets you move up to 50% of your eligible pension income onto your spouse or common-law partner’s tax return, simply by making a joint election (Form T1032) at tax time — no money actually moves. Shifting income from a higher-taxed spouse to a lower-taxed one cuts the couple’s combined tax, and can also free up the receiving spouse’s $2,000 federal pension amount and reduce OAS clawback.
What counts as eligible pension income?
It depends on age. At 65 or older, eligible pension income includes lifetime annuity payments from a registered pension plan (RPP), plus RRIF and annuity (RRSP-derived) payments. Under 65, generally only RPP lifetime annuity payments qualify. CPP/QPP and OAS do not qualify for splitting (though CPP can be shared separately). Enter only the eligible amount in the calculator.
How much tax can splitting save?
The benefit grows with the gap between the spouses’ tax brackets — it’s largest when one spouse has a large pension and the other has little income. On top of the bracket arbitrage, the lower-income spouse may pick up the $2,000 pension amount credit, and a high earner pushed below ~$93,000 can dodge the OAS recovery tax. For evenly matched couples, the saving may be small or nil.
Does splitting always help — and is there a downside?
Not always. If both spouses are in the same bracket, there’s little to gain. Watch for side-effects: shifting income can change each spouse’s OAS clawback, age-amount and other income-tested credits, and (rarely) push the receiving spouse into a higher bracket. The optimizer here finds the split that minimizes combined income tax; confirm the full picture — including OAS — with our OAS clawback calculator or an accountant.
Pension splitting, explained OAS clawback Income tax Which account to draw first

Educational planning calculator, not tax advice. It minimizes combined federal + provincial income tax using 2026 brackets verified at the government source (2026-06-13); it does not model OAS clawback, age-amount phase-outs or other income-tested benefits, which splitting also affects — check those separately. Eligible pension income and the split election (Form T1032) have rules confirm with the CRA or an accountant before filing.