As part of Canada’s retirement benefits, the Old Age Security (OAS) payment remains a crucial source of income for millions of seniors.
With the May 2025 OAS payment just around the corner, it’s essential for eligible seniors and their families to understand the payment amounts, eligibility rules, tax implications, and application procedures.
This guide covers everything you need to know to stay informed and financially prepared.
When Will the May 2025 OAS Payment Be Disbursed?
The May 2025 OAS payment will be issued on Wednesday, May 28, 2025. These payments are typically processed in the last week of each month.
Depending on your chosen method with Service Canada, your payment will either:
- Be directly deposited into your bank account
- Or mailed as a paper cheque
To avoid any delays, seniors are encouraged to set up direct deposit via their My Service Canada Account.
How Much Will You Receive in May 2025?
The OAS payment amount varies depending on your age and individual income. Here’s the breakdown for May 2025:
| Age Group | Maximum Monthly OAS Payment |
|---|---|
| Seniors aged 65–74 | $727.67 |
| Seniors aged 75+ | $800.44 |
These amounts are indexed quarterly based on inflation. While the amount can increase, it will never decrease, even if inflation drops.
If you want to estimate your individual OAS payment, you can use the OAS Benefits Estimator provided through Service Canada.
OAS Payment Adjustment and Evaluation
OAS payments are reassessed every quarter—in January, April, July, and October—to reflect the cost of living index.
- If inflation rises, your payments may increase accordingly.
- If inflation falls, your payments will remain unchanged.
This ensures that seniors always receive consistent financial support to meet their living costs.
OAS Eligibility Requirements
To qualify for OAS, you must meet the following conditions:
- Age Requirement: Must be 65 years or older
- Residency/Citizenship: Must be a Canadian citizen or legal resident
- Residency Duration:
- Must have lived in Canada for at least 10 years after turning 18
- If living abroad, you may still qualify if:
- You were a Canadian citizen or legal resident before leaving
- You have lived in Canada for at least 20 years as an adult
How to Apply for OAS
Most eligible Canadians are automatically enrolled in OAS. Around your 64th birthday, Service Canada will notify you by mail.
However, if you don’t receive a letter:
- You can apply online via My Service Canada Account
- Or submit a paper application along with the necessary documents
You may choose to defer OAS payments until age 70 to receive a higher monthly amount.
Tip: The online form does not allow saving your progress, so gather all required information before starting.
Is OAS Taxable?
Yes, OAS payments are taxable income. The government does not automatically deduct taxes, but you can opt to have taxes withheld to avoid a lump sum at tax time.
To arrange tax deductions:
- Log into My Service Canada Account
- Or submit the Request for Voluntary Federal Income Tax Deductions (CPP/OAS) form
This allows you to manage your taxes proactively and avoid surprises during tax filing.
Upcoming OAS Payment Dates in 2025
Here are the remaining OAS payment dates for 2025:
| Month | Payment Date |
|---|---|
| June | June 26, 2025 |
| July | July 29, 2025 |
| August | August 27, 2025 |
| September | September 25, 2025 |
| October | October 29, 2025 |
| November | November 26, 2025 |
| December | December 22, 2025 |
Make sure your direct deposit details are updated to ensure timely receipt of funds.
OAS and Retirement Planning
The OAS payment is more than just a benefit—it’s a key element of retirement planning for Canadian seniors. By understanding how much you can receive, when it arrives, and how it’s taxed, you can make smarter decisions about budgeting, taxes, and supplemental income.
Also, pairing OAS with Guaranteed Income Supplement (GIS) or Canada Pension Plan (CPP) can help build a more robust financial foundation during retirement.
The May 2025 OAS payment is set for May 28, bringing reliable income support to seniors across Canada. With payments ranging up to $800.44 based on age and indexed to inflation, OAS continues to play a vital role in ensuring financial stability for retirees.
Be sure to:
- Confirm your eligibility
- Review your banking or mailing details
- Set up tax preferences
- Plan ahead using the payment schedule
Staying informed empowers seniors to manage their retirement income with confidence and clarity.
FAQs
When is the May 2025 OAS payment date?
The May 2025 OAS payment will be issued on Wednesday, May 28, 2025, typically via direct deposit or cheque.
How much can seniors receive in May 2025?
Seniors aged 65–74 can receive up to $727.67, while those 75 and older can receive up to $800.44.
Is OAS income taxable?
Yes, OAS is taxable income, but you can request voluntary tax deductions to avoid a large year-end tax bill.