The Guaranteed Income Supplement (GIS) is a monthly, non-taxable benefit paid to low-income Canadians who receive Old Age Security. GIS can provide hundreds of dollars per month to seniors who need it most, yet many eligible Canadians do not claim what they are owed. This guide explains who qualifies, how much you can receive, and how to plan around GIS if you have low retirement income.
GIS is an income-tested supplement to OAS. Unlike OAS and CPP, GIS is not taxable — it does not appear as income on your tax return and does not affect income-tested benefits or credits. It is paid by the federal government to OAS recipients whose income falls below defined thresholds.
GIS is indexed quarterly to the Consumer Price Index, so it adjusts with inflation alongside OAS.
To receive GIS, you must:
GIS stops if you leave Canada for more than 6 months. It can be reinstated when you return, but you must notify Service Canada.
| Marital Status | Max Monthly GIS (approx.) | Income Cutoff (approx.) |
|---|---|---|
| Single / widowed / divorced | ~$1,065 | ~$21,624 |
| Couple (both on OAS) | ~$641 each | ~$28,560 combined |
| Couple (one on OAS, one on Allowance) | ~$1,042 (OAS recipient) | ~$39,648 combined |
GIS is reduced at a rate of $0.50 for every dollar of other income you receive, excluding OAS itself. This means GIS is eliminated once your other income reaches approximately twice the maximum GIS amount.
GIS eligibility is based on your net income from the previous year's tax return, excluding OAS. Income sources that reduce GIS include:
TFSA withdrawals do NOT affect GIS. This is critical for low-income retirement planning — building a TFSA allows you to access tax-free income without jeopardizing your GIS entitlement.
For low-income Canadians expecting to receive GIS, contributing to an RRSP may actually be counterproductive. Every dollar of RRSP/RRIF withdrawal in retirement reduces GIS by $0.50 — effectively creating a 50% "tax" on RRSP withdrawals for GIS recipients, on top of income tax. This means the effective marginal tax rate for low-income seniors drawing RRIF income can exceed 70% when GIS reduction is included.
For these Canadians, the TFSA is a far superior savings vehicle. TFSA withdrawals do not affect GIS, OAS, or other benefits.
Two related programs assist low-income seniors near retirement age:
Many Canadians are automatically assessed for GIS when they apply for OAS. Service Canada may automatically renew your GIS based on your annual tax return. However, if you have not filed taxes, or if your circumstances change, you may need to re-apply. Always file your taxes on time — even with no income owing — to ensure GIS renewals are processed automatically.
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Open KOHO Free — Code 45ET55JSYAGIS can add over $12,000 per year to a single senior's income — entirely tax-free. For low-income retirees, GIS combined with OAS and CPP can provide a livable retirement income in lower-cost Canadian communities. The key planning priorities for GIS recipients are: maximize TFSA usage, minimize RRSP contributions (especially if your income in retirement will be very low), and ensure your tax return is filed on time each year.