Canada Slashes International Student Permits by 7% in 2026 Immigration Overhaul

Canada is reducing its intake of international students. The federal government has announced a new cap on study permits for 2026. This continues a policy shift to manage population growth.

The decision reflects a broader strategy to reduce the number of temporary residents. According to Immigration, Refugees and Citizenship Canada (IRCC), the move is necessary for long-term stability.

Projected Drop in International Student Numbers

The total number of study permits issued in 2026 will be capped at 408,000. This includes permits for new students and extensions for current ones. The target for newly arriving students is set at 155,000.

This figure is seven per cent lower than the 2025 target. It is also 16 per cent lower than the number targeted for 2024. The policy aims to slow the growth of Canada’s temporary population.

Data from IRCC shows the policy is having an effect. The number of study permit holders fell from over a million in early 2024. It dropped to about 725,000 by September 2025.

Broader Impact on Temporary Residents

This student cap is part of a larger immigration levels plan. The government intends to sharply reduce the intake of temporary residents. The reduction target is nearly 43 per cent across various categories.

The plan also includes cuts to work permits. The number of new work permits to be issued will total 230,000 next year. This number will drop further in 2027 and 2028.

These changes will significantly impact certain demographics. Indian nationals form the largest cohort of international students and workers. They accounted for over a third of all study permits issued in 2024.

The government is balancing new arrivals with planned departures. The goal is to reduce the temporary resident share to below five per cent of the population. The target date for this is the end of 2027.

This 7% reduction in international student permits solidifies Canada’s new approach to managing its temporary population, marking a significant shift from previous years of rapid growth.

Thought you’d like to know

Why is Canada reducing international student permits?

The government aims to manage the growth of its temporary population. This policy helps balance the housing market and public services. It is part of a commitment to long-term demographic stability.

How many new international students will Canada accept in 2026?

Canada will issue permits to 155,000 newly arriving international students in 2026. This number is part of a larger cap that includes student extensions. The total permit issuance will be 408,000 for that year.

Which country’s students are most affected by this cap?

Indian students are the most affected group. They accounted for 36.5% of all study permits issued in 2024. Other large source countries will also see reduced numbers.

What is the long-term goal for temporary residents?

The government wants temporary residents to be less than 5% of Canada’s total population. This target must be met by the end of 2027. The new permit caps are designed to achieve this reduction.

Are work permits being reduced as well?

Yes, the number of new work permits will also decrease. The target for 2026 is 230,000 new permits. This number will drop to 220,000 for both 2027 and 2028.