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The Guaranteed Income Supplement (GIS) is a vital tax-free benefit provided by Canada to low-income seniors receiving Old Age Security (OAS) to supplement their basic living income. This article, based on official data released in 2025, explains the GIS maximum benefit, eligibility criteria, income test, application process, and benefits rules, as well as its relationship with OAS and the CPP, to help you plan for your later years.
2025 Maximum GIS Benefits
Single, widowed, or divorced individuals: Maximum of $1,065.47 per month (approximately $12,785.64 per year).
Married/common-law couples receiving both OAS recipients: Maximum of $641.35 per person per month.
Married/common-law couples where one partner receives OAS and the other is under 60: Maximum of $1,065.47 per month. Married/common-law couples, where one spouse receives OAS and the other receives GIS or Allowance: The amount depends on the combined income.
The actual amount depends on the family's net income. Higher incomes reduce the GIS until it is eliminated entirely.
GIS Eligibility Requirements
You must be eligible for OAS (at least 10 years of residency in Canada).
You must be 65 years of age or older (or 60 years of age or older for a spouse/common-law partner receiving Allowance).
Your family's net income must be below the government-set income ceiling (Canadian $21,624 for a single person in 2025).
You must be a Canadian resident and legally residing.
Income qualification Test
The GIS amount is adjusted each July based on the net income on your tax return from the previous year:
Calculation basis: Net Income (Line 23600), excluding OAS and GIS.
Reduction Rule: For every dollar above the exemption limit, the GIS is reduced by 50–75 cents (depending on family structure). CPP, RRIF withdrawals, rental income, etc. are all included in income and thus affect the GIS.
Example of GIS Amount Change (2025)
| Household Type | Annual Net Income | Monthly GIS | Annual Amount | Percentage of Reduction |
|---|---|---|---|---|
| Single | 0 | 1,065.47 | 12,785.64 | 0% |
| Single | 10,000 | 540.47 | 6,485.64 | -49% |
| Married: Both Receiving OAS | 0 | 641.35 | 7,696.20 | 0% |
| Married: Both Receiving OAS | 15,000 | 120.35 | 1,444.20 | -81% |
Source: Government of Canada website (Canada.ca) for the 2025 GIS payment cap and income thresholds.
Assumptions: For clarity of comparison, this figure uses a linear phase-out model—that is, the GIS is maximum at "net annual income = 0" and decreases to 0 at "net annual income = the government-declared threshold," with linear interpolation used. While actual GIS calculation rules are more complex (due to different household structures and adjustments), they are not completely linear, but the linear model facilitates intuitive comparison.
Applying for and Renewing Benefits
If you are already receiving OAS and your tax return is complete, GIS is generally assessed and issued automatically.
You can submit your initial application through your My Service Canada account or using a paper form (ISP3025).
You must file your tax return annually to continue receiving benefits; otherwise, your benefits will be interrupted.
Strategies for Maximizing GIS
Plan your RRSP withdrawals and CPP withdrawals before age 65 to reduce your taxable income in retirement.
Diversify your income sources to minimize the impact of large, one-time withdrawals on your current GIS.
Couples can optimize their household income structure through pension splitting. Properly planned asset conversions (such as a TFSA tax-free account) do not affect GIS calculations.
The Relationship Between GIS, OAS, and CPP
OAS: GIS requires OAS as a prerequisite, and both are paid simultaneously.
CPP: CPP amounts are factored into the GIS income test, and high CPP amounts can reduce or even eliminate GIS.
The combination of these three forms a basic pension system: OAS (basic) + GIS (supplementary) + CPP (contributory).
GIS is a tax-free subsidy for low-income seniors. It complements OAS and, when combined with appropriate CPP planning, can help maintain a stable lifestyle in retirement.
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