Minimum Necessary Income for Sponsoring Parents to Canada: What You Need to Know

One of the most common reasons a Parent and Grandparent Program (PGP) application is refused or returned is failing to meet the minimum necessary income (MNI) requirement. If you are hoping to sponsor your parents or grandparents as permanent residents, understanding how the MNI works — what counts, what doesn't, and how many years of income you need to show — is essential before you even enter the lottery.

As of writing: IRCC updates the MNI thresholds at least annually. The figures in this article are illustrative of how the system works, not current amounts. Always verify the exact current threshold at canada.ca or with a licensed immigration practitioner.

What Is the Minimum Necessary Income?

The MNI is the minimum after-tax household income a sponsor must demonstrate to prove they can financially support themselves and the people they are sponsoring. It is set by the federal government and is based on Low Income Measure After Tax (LIM-AT) figures published annually. The threshold increases with the size of the "family unit" — meaning every person who already depends on you and every person you are adding through the sponsorship counts toward the total.

Under the Immigration and Refugee Protection Act (IRPA) and its accompanying regulations, a sponsor must show income above the MNI for the most recent three consecutive tax years prior to the application. A single strong year is not enough.

How the Family Unit Size Is Calculated

Your family unit includes everyone counted against your income. As a general rule, this includes:

• You (the sponsor)
• Your spouse or common-law partner (if applicable)
• Any dependent children in your household
• Any other persons you currently sponsor under an active undertaking
• The principal applicant (the parent or grandparent you are sponsoring)
• Any dependants accompanying the principal applicant

Example (illustrative only): If you are single with no dependants and sponsoring two parents who have no accompanying dependants, your family unit size would be three. Your income threshold is the MNI for a family of three. If your parents are bringing a dependent grandchild with them, the unit grows to four. Confirm the current MNI table for each family unit size at IRCC's website.

What Counts as Income?

IRCC looks at your total income as assessed by the Canada Revenue Agency (CRA) for the relevant tax years. This generally includes:

• Employment income (T4 slips)
• Self-employment income
• Pension income
• EI benefits
• Provincial income assistance (in limited circumstances)
• Rental income
• RRSP withdrawals shown on your return

What Does Not Count

• A co-signer's income in most cases (the PGP does not allow a co-signer the way some other sponsorships do)
• Capital gains that are not part of your regular taxable income calculation
• Gifts or informal cash support

The Three-Year Requirement

This is the piece that catches many sponsors off guard. IRCC requires that you demonstrate income above the MNI for each of the three most recent consecutive tax years. If you had a low-income year two years ago and recovered last year, you may still fall short.

How to Document Your Income

You will need your Notice of Assessment (NOA) from CRA for each of the three years. Requesting these online through CRA My Account is the fastest approach. Ensure each NOA clearly shows your total income for that year.

What If Your Income Is Borderline?

If your income is close to but above the MNI, include all supporting documents and make sure your NOAs are complete. Gaps in documentation are treated similarly to gaps in income.

If your income genuinely falls below the MNI for any required year, your options are limited:

• Wait: If your income is growing, waiting until stronger NOAs are available may result in a higher-quality application.
• Maximize reported income: Ensure all legitimate income sources are properly reported on your tax return before you file. Speak with a tax professional.
• Super Visa as a bridge: If permanent residence is not currently feasible due to income constraints, the Super Visa allows parents and grandparents to stay in Canada for extended periods (see our companion article on the super visa).

Changes in Your Situation After Applying

Once you submit your application, IRCC generally assesses the income as of the time of submission. However, if processing takes years and your financial situation deteriorates significantly, IRCC may ask for updated information. Notify your legal representative of any major changes (job loss, additional dependants, divorce) that occur after filing.

Frequently asked questions