Canada unveils 2026 student cap: New targets cut permits again, expand grad exemptions

 

Canada has formally released its provincial and territorial allocations for the 2026 international student cap, setting the tone for one of the biggest recalibrations of the International Student Program in years. The new framework sharply narrows how many study permit applications will be processed next year while widening exemptions for high-value academic talent, part of Ottawa’s push to bring the country’s temporary resident population below 5% by 2027, according to IRCC.

The November 25 announcement gives students, provinces, and educational institutions their clearest roadmap yet for how international enrolment will be managed in 2026. Unlike earlier expansion-heavy years, the new allocations lean on sustainability, provincial capacity, and quality assurance rather than growth.

Canada’s 2026 study permit targets

For 2026, Immigration, Refugees and Citizenship Canada (IRCC) expects to issue up to 408,000 study permits, including 155,000 for new arrivals and 253,000 for returning students applying from within Canada. This is 7% lower than 2025 and 16% below the 2024 target, continuing Ottawa’s efforts to scale back study permit issuance.

The national breakdown for 2026 includes:

• 49,000 master’s and doctoral students at public DLIs (PAL/TAL exempt)

• 115,000 K–12 students (PAL/TAL exempt)

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• 64,000 other exempt applicants

• 180,000 PAL/TAL-required applicants

• Total: 408,000

Why Canada is reducing study permit issuance again

IRCC says the reductions are necessary to manage pressures on housing, health care, and local infrastructure—even after the total number of active study permit holders fell from over 1 million in early 2024 to around 725,000 by September 2025.

Ottawa argues that the temporary resident population remains “unsustainably high,” and that a tighter cap is needed to stabilise public systems while preserving pathways for genuine high-skilled talent.

Major policy shift: PAL/TAL exemptions for graduate students

The biggest structural change for 2026 is the new exemption for master's and doctoral students at public designated learning institutions—a move aimed at strengthening research capacity and attracting global academic talent. From January 1, 2026, these students no longer need a Provincial or Territorial Attestation Letter (PAL/TAL).

Other exempt groups include:

• K–12 students

• Government-priority and vulnerable cohorts

• Students extending permits at the same institution and level

This exemption frees provinces to use their limited PAL/TAL quotas on undergraduate and other regulated streams.

Province-by-Province allocation for 2026

The federal government has allocated 180,000 PAL/TAL-required study permits across provinces based on size, DLI capacity, and historical enrolment.

2026 allocations for PAL/TAL-required applicants:

• Ontario: 70,074

• Quebec: 39,474

• British Columbia: 24,786

• Alberta: 21,582

• Manitoba: 6,534

• Saskatchewan: 5,436

• Nova Scotia: 4,680

• New Brunswick: 3,726

• Newfoundland and Labrador: 2,358

• Prince Edward Island: 774

• Northwest Territories: 198

• Yukon: 198

• Nunavut: 180

Ontario continues to receive the largest share due to its extensive DLI network, followed by Quebec and British Columbia.