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In Canada, governments use low-income cut-off (LICO) thresholds for some financial assistance programs and immigration sponsorship applications. Learn more.
Low-income cut-offs, or LICOs, refer to income thresholds below which a person or a family is considered “low income.”
Calculated by Statistics Canada, these thresholds are income levels at which a person or family likely spends 20% or more of their income—compared to the Canadian average—on necessities including food, shelter and clothing.
The data for LICO thresholds is based on 1992 expenditure data but is adjusted for inflation annually using the all-items Consumer Price Index (CPI).
LICO data is used to identify the people and families most in need of financial or economic assistance. This helps governments to shape economic policies and financial aid programs.
The low-income cut-off varies based on geographic location. The LICO for a four-person family in a large metropolitan area is higher than in a rural area, due to the higher cost of living in cities.
The federal government also uses low-income cut-off thresholds for some immigration and visa programs.
LICOs are used as the “minimum necessary income” Canadians must have to:
For sponsorship, you must have a minimum necessary income in the three tax years before you apply, and the amount is based on the number of people you are sponsoring. (If your income is not high enough, your spouse or common-law partner can co-sign the application, if they are eligible to, and you can combine your incomes.) As proof of income, you will need to provide your notice of assessment for all three tax years or give the government permission to seek your tax information from the Canada Revenue Agency. Learn more about sponsoring family members.
To bring parents or grandparents to Canada for an extended stay up to five years long, you can apply for the government’s super visa program, a multiple-entry temporary resident visa (TRV) that’s valid for up to 10 years. One of the requirements is that you have at least the minimum necessary income, which is based on the LICOs each year. (If your income is not high enough, your spouse or common-law partner can co-sign the application.)
Below is the 2024 LICO table, in Canadian dollars, for Canada except Quebec. (See the basic income required in Quebec.)
| Size of family unit | Minimum necessary gross income |
|---|---|
| 1 person (your child or grandchild) | $29,380 |
| 2 persons | $36,576 |
| 3 persons | $44,966 |
| 4 persons | $54,594 |
| 5 persons | $61,920 |
| 6 persons | $69,834 |
| 7 persons | $77,750 |
| If more than 7 people, for each additional family member | $7,916 |
LICOs are also used to set the minimum amounts of money, known as “settlement funds,” that applicants to the following Express Entry immigration programs must have if they do not have a valid job offer:
Settlement funds are set at 50% of the LICOs. Again, the amount of money you need is based on the size of your family.
Below is a table of the minimum amounts you need, in Canadian dollars, as of June 3, 2024. Learn about providing proof of funds.
| Number of family members | Settlement funds you need |
|---|---|
| 1 | $14,690 |
| 2 | $18,288 |
| 3 | $22,483 |
| 4 | $27,297 |
| 5 | $30,690 |
| 6 | $34,917 |
| 7 | $38,875 |
| If more than 7 people, for each additional family member | $3,958 |
Example: Elizabeth, her spouse, and two minor children live in Ireland. They have applied for Canadian permanent residency under the Express Entry program. For her family of four, Elizabeth had to show documentary proof (such as bank statements, savings certificates and investments) that she had the equivalent of at least $27,297 for settlement funds to support themselves in Canada. Once the family has lived in Canada for three years, Elizabeth and her spouse may be able to sponsor their parents to immigrate to Canada. For this, they’ll need to show that their annual income meets the minimum requirement, based on the low-income cut-off table.
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