Canada Announces Major Update to International Student Cap for 2026, Exempts Master's and PhD Students
- What changed? Immigration, Refugees and Citizenship Canada (IRCC) is reducing the number of new study permits it will issue in 2026 and has announced new provincial application allocations.
- Who is affected? Master's and doctoral degree students at public institutions will now be exempt from requiring a Provincial Attestation Letter (PAL). The overall cap reduction will increase competition for undergraduate and college-level applicants.
- Key Date: These new rules and exemptions will take effect on January 1, 2026.
On November 25, 2025, Immigration, Refugees and Citizenship Canada (IRCC) released its plan for the 2026 international student cap, introducing significant changes aimed at managing the growth of Canada's temporary resident population. The update lowers the overall number of study permits to be issued and, most notably, creates a major new exemption for graduate-level students, signaling a strategic shift in Canada's approach to attracting international talent.
Who Does This Affect?
The 2026 changes will impact several groups of prospective international students:
- Master's and PhD Students: As of January 1, 2026, students enrolling in master's or doctoral degree programs at a public Designated Learning Institution (DLI) will no longer need a Provincial Attestation Letter (PAL) to apply for a study permit.
- Undergraduate and College Applicants: These students will still require a PAL and will face increased competition due to a smaller national allocation of study permit application spaces.
- Primary and Secondary School Students: Students applying for kindergarten to grade 12 remain exempt from the cap and do not require a PAL.
- Existing Study Permit Holders: Students already in Canada who are applying to extend their study permit at the same DLI and at the same level of study are also exempt.
Detailed Breakdown of the Changes
New Study Permit Targets for 2026
IRCC aims to issue a total of up to 408,000 study permits in 2026. This figure includes both new arrivals and extensions for students already in Canada. This target is a 7% reduction from the 2025 target of 437,000 and a 16% reduction from the 485,000 permits targeted in 2024. Of the total, up to 180,000 permits are allocated for new students who require a PAL.
Key Exemption for Graduate Students
The most significant policy shift is the exemption for graduate students. IRCC stated this change is "in recognition of their unique contributions to Canada’s economic growth and innovation." This move is designed to streamline the application process for top-tier academic talent and support Canada's research and development goals. A full list of public DLIs offering eligible programs will be made available on the official IRCC website.
Provincial and Territorial Allocations
IRCC has set the total number of study permit application spaces for PAL-required students at 309,670 for 2026. This number is higher than the permit issuance target to account for application refusals. Each province and territory is responsible for distributing its allocation among its DLIs. The 2026 allocations are as follows:
- Ontario: 104,780 applications
- Quebec: 93,069 applications
- British Columbia: 32,596 applications
- Alberta: 32,271 applications
- Saskatchewan: 11,349 applications
- Manitoba: 11,196 applications
- Nova Scotia: 8,480 applications
- New Brunswick: 8,004 applications
- Newfoundland and Labrador: 5,507 applications
- Prince Edward Island: 1,376 applications
- Northwest Territories: 785 applications
- Yukon: 257 applications
Context and Implications (The "Why")
This announcement is part of the federal government's ongoing effort to stabilize the number of temporary residents in Canada. The stated goal is to reduce the temporary resident population to below 5% of Canada's total population by the end of 2027. The international student cap, first introduced in 2024, is a primary tool for achieving this objective. For applicants, these changes mean that Canada is becoming more selective, prioritizing graduate-level students who are more likely to contribute to high-skill sectors of the economy, while further limiting the number of undergraduate and college-level students.
How to Prepare
If you are a prospective international student, here are some actionable next steps:
- Master's and PhD Applicants: Confirm that your chosen institution is a public DLI. You can prepare your study permit application for submission on or after January 1, 2026, without needing to secure a PAL.
- Undergraduate and College Applicants: Contact your DLI as soon as you receive a letter of acceptance to understand their process for issuing a PAL. With fewer spots available, it is crucial to submit a complete and accurate study permit application as early as possible.
- All Applicants: Stay updated by checking the official for the latest information and detailed requirements.
Conclusion
The 2026 international student program update marks a clear strategic direction for Canadian immigration. While the overall cap is tightening, the new exemption for Master's and PhD students creates a clear pathway for high-level academic talent. Prospective students must now carefully consider these new rules as they plan their educational journey to Canada, recognizing the increased competition for programs that fall under the provincial cap.