Canada requires sponsors to demonstrate sufficient income before sponsoring certain family members for permanent residence. For the Parent and Grandparent Program (PGP), sponsors must show income at or above the Low Income Cut-Off (LICO) plus 30% for the 3 most recent consecutive tax years. Understanding what counts, what doesn't, and who is exempt is critical to a successful application.
The Critical Distinction: Spousal vs. PGP Sponsorship
✓ Spousal/partner sponsors: NO minimum income requirement
Sponsors of spouses, common-law partners, and conjugal partners are exempt from the minimum necessary income (MNI) requirement under IRPR s.133(1)(j). You do not need to meet any income threshold to sponsor your spouse — except in specific situations where dependent children are being co-sponsored.
⚠ PGP sponsors: LICO+30% required for 3 consecutive years
Sponsors of parents and grandparents must demonstrate income at LICO+30% for each of the 3 most recent consecutive tax years. This is one of the most common eligibility barriers for PGP sponsors.
LICO+30% Thresholds — 2025/2026
IRCC uses Statistics Canada's Low Income Cut-Off (LICO) before-tax figures and requires sponsors to earn at least 30% above those thresholds. The family size includes: the sponsor, the sponsor's spouse or partner (if applicable), any dependent children, any persons being sponsored in this application, and any persons sponsored under a prior undertaking still in effect. Always verify current thresholds on the IRCC website — thresholds are updated periodically.
| Family Size | LICO (approx.) | LICO+30% (Minimum Required) |
|---|---|---|
| 2 persons | $22,326 | $29,024 |
| 3 persons | $27,427 | $35,655 |
| 4 persons | $33,255 | $43,232 |
| 5 persons | $37,696 | $49,005 |
| 6 persons | $42,521 | $55,277 |
| 7 persons | $47,347 | $61,551 |
| For each additional person beyond 7, add approximately $4,826 to the LICO+30% figure. Verify exact figures on canada.ca. | ||
Note: These figures are approximate and based on publicly available LICO data. IRCC updates thresholds; always confirm at canada.ca before applying. Last verified: March 2026.
What Counts as Income?
Under IRPR s.134, the following income types are counted toward the LICO+30% threshold:
✓ Counted as Income
- ✓Employment income (T4 employment)
- ✓Self-employment income (net, reported on T1)
- ✓Rental income (net)
- ✓Employment Insurance (EI) benefits
- ✓Canada Pension Plan (CPP) / Quebec Pension Plan (QPP)
- ✓Old Age Security (OAS)
- ✓Pension income
- ✓Other taxable income reported on T1
✗ NOT Counted as Income
- ✗Social assistance / welfare
- ✗Income of other household members (unless co-signing undertaking)
- ✗Non-taxable income
- ✗Gifts or informal income not reported to CRA
- ✗Child tax benefit / CCB
- ✗Disability tax credit (non-refundable)
The 3-Year Income Requirement
PGP sponsors must demonstrate LICO+30% income for each of the 3 most recent consecutive tax years. This means:
- ✓ All 3 years must individually meet the LICO+30% threshold — one bad year cannot be averaged out
- ✓ If the 2025 tax year is not yet filed when you apply, the 3 years would typically be 2022, 2023, and 2024
- ✓ CRA Notices of Assessment (NOA) are the primary document — IRCC requires the actual NOA, not just a T4 or bank statement
- ✓ If you received a reassessment from CRA, include the reassessment notice
- ✓ If any NOA year is missing or shows insufficient income, the sponsorship will not proceed
💡 How to get your NOAs
Log in to your CRA My Account at canada.ca to access and download your Notices of Assessment for past years. You can also call CRA to request printed copies. Do not submit T4 slips alone — the NOA is specifically required.
Using a Co-Signer to Meet Income Requirements
If the sponsor's income alone does not meet LICO+30%, a co-signer (also called a co-sponsor) may be added. The co-signer is typically the sponsor's spouse or common-law partner. Key rules:
- ✓ The co-signer must also sign the 20-year undertaking and become jointly financially responsible for the sponsored person
- ✓ The co-signer must also be a Canadian citizen or permanent resident
- ✓ The combined income of the sponsor and co-signer may be used to meet the LICO+30% threshold
- ✓ The co-signer's income is only counted if they are co-signing the undertaking — having a high-earning spouse does not automatically help if the spouse does not co-sign
- ✓ Both the sponsor and co-signer must provide 3 years of NOAs
Know your exact income threshold
Our $149.99 pathway report calculates your LICO+30% requirement based on your family size and advises on the best sponsorship pathway for your income level.
Get Your Pathway Report — $149.99Frequently Asked Questions
Do I need to meet an income requirement to sponsor my spouse?+
No. Spousal and partner sponsors (spouse, common-law partner, conjugal partner) are exempt from the minimum income requirement under IRPR s.133(1)(j). This is a common misconception — the LICO+30% income requirement applies to PGP sponsorships, not spousal sponsorships (except when there are dependent children being co-sponsored).
What if I didn't file taxes for one of the 3 years?+
IRCC requires NOAs for 3 consecutive years. If you did not file a tax return for one or more of those years, you should file before applying. Late tax filings are accepted by CRA. An unfiled year will result in a missing NOA, which can prevent the sponsorship from proceeding.
Can self-employment income count toward the LICO+30% threshold?+
Yes — net self-employment income (as reported on your T1 General) counts toward the LICO+30% requirement. The key is that it must be reported to CRA and reflected on your NOA. Keep in mind that if you have significant business expenses that reduce your net income, the after-expense figure is what counts — not gross revenue.
My income fluctuates year to year. Do I need to meet the threshold every year?+
Yes. All 3 years must individually meet the LICO+30% threshold for your family size in that year. IRCC does not average your income across the 3 years. If any one of the 3 years falls below the threshold, the sponsorship does not meet the income requirement for that intake.
Important: This tool provides general information based on publicly available Canadian immigration law (IRPA). Results are not a determination of admissibility. Only a CBSA officer at a port of entry can make admissibility decisions. For complex legal situations, professional guidance may also be beneficial.