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07 November 2025

Canada's 2025 budget and immigration levels plan discussed

On 4 November 2025, the Government of Canada released the 2025 Federal Budget and the Immigration Levels Plan for 2026 to 2028. This plan builds on the strategy introduced in 2024 to reduce temporary resident admissions and maintain permanent resident targets at lower levels, citing pressures on housing, infrastructure, and public services. Temporary resident levels will decline significantly, with international student admissions seeing the largest reductions. Permanent resident targets remain stable but lower than previous years, with a greater emphasis on economic immigration and increased allocations for Provincial Nominee Programs. The government also announced one-time measures to transition select temporary workers and protected persons to permanent residence, along with new initiatives under the International Talent Attraction Strategy to recruit global researchers and highly skilled professionals, including H-1B visa holders.

A Tax Alert prepared by EY Law LLP group, and attached below, provides additional details.

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Attachment

Full text of Tax Alert

Document ID: 2025-2244

 

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