On November 25, 2025, Canada released its official provincial and territorial allocations for the 2026 international student cap, marking one of the most significant restructurings of the International Student Program in recent years.
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The update introduces a more selective and controlled framework for how many study permit applications will be accepted next year, along with expanded exemptions designed to attract high value global talent. These measures reflect Canada’s broader strategy to reduce its temporary resident population to below 5 percent by the end of 2027 while protecting academic standards and economic priorities.
With temporary residents still representing a historically high share of the population, the federal government is continuing its multi year effort to stabilize housing, infrastructure, and public services. For students, institutions, and provincial governments, the 2026 allocations provide the clearest direction yet on how international enrollment will shift in the coming year.
Unlike previous years that focused on rapid growth, the 2026 approach prioritizes sustainability, quality assurance, and provincial capacity. This article outlines the 2026 national targets, the PAL and TAL exemptions, allocation methodology, and the expected impact on Canada’s education system and labour market.
Canada’s 2026 Study Permit Targets
For 2026, Immigration, Refugees and Citizenship Canada expects to issue up to 408,000 study permits, including both new arrivals and extensions for in Canada students. This target is lower than the 2025 target of 437,000 and 16 percent below the 2024 target of 485,000, showing a continued tightening of the program.
The 2026 national breakdown includes:
- 49,000 for master’s and doctoral students at public DLIs (PAL and TAL exempt)
- 115,000 for kindergarten to grade 12 students (PAL and TAL exempt)
- 64,000 other PAL and TAL exempt applicants
- 180,000 PAL and TAL required applicants
- Total: 408,000
Why Canada Is Reducing Study Permit Issuance Again
Canada had more than one million study permit holders in early 2024. By September 2025, this number had declined to about 725,000. IRCC states that additional reductions are necessary to ease pressure on housing, health care, and infrastructure and to restore balance within the immigration system.
New 2026 PAL and TAL Exemptions for Graduate Students
The most significant change for 2026 is the expanded exemption for graduate students. Starting January 1, 2026, master’s and doctoral students enrolling at public DLIs will not need a Provincial Attestation Letter or Territorial Attestation Letter. This exemption is intended to help Canada compete globally for research focused talent and support innovation in fields such as clean energy, technology, and health sciences.
The following groups remain exempt from PAL or TAL requirements:
- Master’s and PhD students at public DLIs
- Kindergarten to grade 12 students
- Government priority groups and vulnerable cohorts
- Students renewing a study permit at the same level and at the same institution
Provincial and Territorial Distribution for 2026
Out of the 180,000 PAL and TAL required permits, the federal government has distributed targets as follows:
- 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
- Total: 180,000
2026 Application Allocations
Allocations reflect how many study permit applications provinces may accept in order to reach their issuance targets. Provinces with lower approval rates receive more allocations to ensure they meet their final number. The 2026 allocations total 309,670, with Ontario receiving 104,780, Quebec 93,069, and British Columbia 32,596.
Impact on Designated Learning Institutions
Provinces will divide their allocations among their designated learning institutions. This means that each college, university, and private institution will have a defined limit on how many international students it can admit. Institutions must now evaluate their approval rates, compliance history, housing availability, and intake plans. Those with low approval rates or insufficient student housing may face tighter restrictions.
Impact on International Students
International students will experience increased competition for undergraduate and college level study permits. Meanwhile, graduate students will benefit from the expanded exemptions and more predictable pathways. Stronger verification requirements and documentation standards will apply across all levels.
Alignment with Canada’s 2026 to 2028 Immigration Plan
The 2026 changes align with Canada’s long term plan to reduce reliance on temporary residents while increasing permanent residency pathways for individuals in high demand fields. The focus is on attracting skilled graduates, strengthening labour market alignment, and maintaining sustainable growth within Canada’s infrastructure limits.
Provincial Outlook
- Ontario must carefully distribute its large allocation to balance institutional needs and compliance.
- British Columbia will continue to experience high demand in regions affected by housing shortages.
- Quebec maintains strong enrollment levels supported by its French language programs.
- Alberta and Saskatchewan will likely direct study permits toward labour market needs in trades, agriculture, and health care.
- Atlantic provinces, which rely heavily on international students, may experience financial and enrolment pressures due to reduced allocations.
Community and Economic Effects
The cap is expected to lower pressure on housing, health care, and local services. However, regions that depend heavily on international students may see lower consumer spending and decreased demand for student housing.
Outlook for 2027 and Beyond
Canada plans to continue reducing temporary resident levels through 2027 to meet its target of keeping temporary residents below 5 percent of the total population. The 2026 framework represents a major shift toward a more sustainable and more selective international student system.
