Canada Announces New International Student Cap numbers and Incentives for International Recruitment of Master’s and PhD students in 2026
Key Takeaways:
- Canada has provided its targets for study permit issuance in a detailed breakdown for 2026
- Canada’s foreign enrolment cap across provinces and territories, and level of study targets and their distribution
- IRCC new guidance for students transitioning from secondary to post-secondary studies within Canada, and those enrolled in joint programs
- 2026 total targets suggest study permit approval rates are expected to return to past benchmarks with considerably above current approval levels
- Master’s and graduate students planning to enrol at a public university in Canada will be exempt from the enrolment cap from 1 January 2026
- On a fast-track process study permit applications for doctoral students will now be processed within 14 days
For the next year, the following additional points of context are important to consider for these cap limits:
- Master’s and doctoral degree students enrolled at public institutions are excluded from the cap. These students are currently counted under the cap but will be exempted for the year 2026.
- Canada is not close to its current cap limits. The IRCC targets 2025 of study permit application volumes, and study permit issuances remain considerably lower than usual.
- Study permit approval rates are significantly lower than past benchmarks for this year. Through the first half of 2025, the approval rate for new study permit applications was just over 30%. In comparison to an approval rate of 51% for applications processed in the same period in 2024.
The following table from IRCC is a breakdown of the 2026 target into key student categories. One, for those exempted from the enrolment cap (masters, doctoral, and K-12 students) and another for those that require a provincial or territorial attestation letter (PAL/TAL) in order to apply for a study permit under the enrolment cap.
2026 National Target (New Arrivals and In-Canada Extensions)
Category
Number of Applicants
Master’s and doctoral students enrolling at public DLIs (PAL/TAL-exempt)
49,000
Primary and secondary school (kindergarten to grade 12) students (PAL/TAL-exempt)
115,000
Other PAL/TAL-exempt study permit applicants
64,000
PAL/TAL-required applicants
180,000
Total
408,000
IRCC’s updated its cap breakdown for 2026, providing each province and territory’s detailed allocations and targets in Canada, both in terms of expected study permit issuance and with respect to the allocation of PAL/TALs for each region as well.
Although, it has been observed most importantly that these numbers suggest that the permit processing in the upcoming year will be less rigid. It is expected that approval rates will return as close to the previous trends of 50%+.
As per the IRCC outline, nearly 310,000 study permit applications for students acquired under the enrolment cap are anticipated, out of which the ministry expects to issue 180,000 study permits. These total numbers indicate almost double the current approval rate in 2025 with an estimated approval rate of 58% in 2026.
Updates on Guidance for Canada's International Student Program
Issued on November 25, 2025, provided by IRCC the updated guidance on important updates for Canada’s international student program.
- Students transitioning from secondary to post-secondary education in Canada may begin their studies at a designated learning institution (DLI) while waiting for their study permit application to be finalized, provided they submit the post-secondary study permit application before their current study permit expires and maintain valid status. This applies to all post-secondary programs, including diploma, undergraduate, and Master’s programs.
- IRCC has also provided clarification for students enrolled in joint programs offered by two institutions that lead to a single credential. According to the updated guidance, these students are required to obtain a Provincial or Territorial Attestation Letter (PAL/TAL) for the province or territory where the institution issuing the credential is located. Additionally, students in joint programs must hold a single study permit issued for the institution granting the credential, which will remain valid for the full duration of their studies.
Canada’s New Incentives for International Recruitment of Master’s and PhD Students
On 4 November 2025, the federal introduced a new budget including an Immigration Levels Plan targeting the numbers of new permanent residents and temporary residents that will be admitted for each year through 2028.
The new study permits in 2025 with foreign enrolment cap of 316,276, is now set limited to 155,000 new study permits for 2026 with a -49% reduction from 2025 levels and moving forward to 150,000 per year for 2027 and 2028.
The new targets also represent a significant change from the previously targeted limits of 385,000 in 2026 and 370,000 per year for 2027 and 2028.
Furthermore, the IRCC has issued additional guidance for students pursuing advanced degrees.
IRCC states that it will now offer accelerated study permit processing for applicants admitted to doctoral programs.
- Doctoral candidates lodging study permit applications from outside Canada will now be processed within 14 days.
- When applied at the same time as the doctoral student, the accelerated process will also extend to accompanying family members.
IRCC states: “Canada recognizes the important contributions doctoral degree students make to Canada’s research ecosystem and innovation agenda, including advancements in critical sectors like health care. Faster processing will make it much easier for high-performing international doctoral students to pursue their education, research and post-graduation career here.”
Additionally, as of January 2026, students enrolling in master’s or doctoral programs at public designated learning institutions (DLIs) will no longer require a provincial/territorial attestation letter (PAL/TAL) as they will be exempt from the enrolment cap.
IRCC suggested, “Master’s and doctoral degree students enrolling at a private DLI will continue to be subject to the intake cap’s [provincial/territorial attestation letter] requirement and will be counted as part of each province and territory’s overall allocation [under the enrolment cap].”
Therefore, the yearly comparisons have now become a bit challenging when relating to this year’s cap limit and the newly announced limits for 2026 (and after).
In the past benchmarks, students in advanced degree including both master’s and doctoral programs have represented particularly small proportion in the base of Canada’s foreign enrolment program. In comparison to 2023, nearly 10% of all study permits were approved for graduate students.
Study permits approved in 2023 for master’s and doctoral students were contributed around 10%, which is almost over 53,000 permits that year.
For 2022-23 academic year, the Statistics Canada suggest differently as there were around 65,000 students enrolled in advanced degree programs.
Basically, this suggests that Canada could welcome another 30,000–50,000 students or even more for advanced degree programs in 2026 despite the newly established cap limit of 155,000 new study permits for the year. This would mean that the initially calculated reduction in the cap limit of –49%, now could be anywhere from -41% to -30%.
It can reasonably be concluded from this new guidance that IRCC has introduced a structural preference within the study permit system —one that actively encourages public universities in Canada to increase recruitment for advanced degree programs.
It can reasonably be concluded from this new guidance that IRCC has introduced a structural preference within the study permit system —one that actively encourages public universities in Canada to increase recruitment for advanced degree programs.
Starting January 1, 2026, Canada has reinforced these measures, as IRCC has launched a dedicated landing page for graduate students, highlighting key incentives such as accelerated processing for doctoral applicants and exemption from the enrolment cap for graduate students at public institutions.
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