LICO Table 2021 – Low Income Cut-Off Canada

LICO Table 2021Alicia is a Canadian citizen who intends to sponsor her parents in immigration to Canada. While searching the internet for some answers, she realizes her income is an important piece of a sponsorship application puzzle. Generally, she must show an income equivalent to LICO plus 30%. Alicia wonders what LICO is and how she can access the LICO table 2021 to realize the sponsorship application’s income requirements.

Immigrants to Canada must show they intend to live in our country independently and without using social assistance [note to practitioners – see A39]. Of course, there are many ways to confirm you want to be an independent newcomer in Canada. Regardless, the LICO table is an essential tool to serve this purpose.

Table of contents

What is LICO?

The low-income cut-off (LICO) table represents the poverty line in Canada’s urban areas, with a population of half a million or more. In other words, if your income is below LICO, you are poor. LICO changes every year due to inflation. The first table on this page shows LICO for immigration to Canada in 2021.

Settlement funds versus annual income

To verify financial admissibility, an immigration officer may consider your skills, work experience, educational credentials and your assets. Nonetheless, one of the main options to prove your ability to be independent is the settlement funds. Of course, settlement funds refer to the amount of money you can bring to Canada when you land as a newcomer. Immigration authorities use the LICO table as a tool to evaluate the sufficiency of settlement funds. Consider reading the following article for more information on settlement funds.

When you are sponsoring a family member via a family reunification option, you cannot rely on settlement funds. Since you are financially sponsoring your loved ones, you normally need to show a steady income. Therefore, your income becomes more important than the money you have in your bank account. Of course, you may read the following articles for more information:

The LICO table 2021 is a point of reference for sponsorship income too.

Where LICO is useful

As mentioned earlier, you may use the LICO 2021 table both for settlement funds and the necessary annual income. Here are some examples.

Of course, these are just some examples. Additional federal or provincial immigration options may also consider LICO 2021 as a tool for evaluating applicants’ financial status. Consequently, in some immigration options, such as the Federal Self-employed class, LICO could really help even though settlement funds are not an explicit assessment factor. Consider reading the following article for more information:

LICO table 2021

The following table shows LICO for 2021* as you see the LICO changes based on the household number.

Size
of Family Unit
LICO
– 12 Months
LICO
– 6 Months
one person $26,439 $13,220
two persons $32,915 $16,458
three persons $40,465 $20,233
four persons $49,130 $24,566
five persons $55,723 $27,861
six persons $62,845 $31,423
seven persons $69,970 $34,985
If more than seven persons, for each
additional person, add
$7,125 $3,563

* The government of Canada has not released the official figures yet. However, we have projected the values based on a 2% year over year inflation. Of course, as soon as we receive the official figures, we will update this table accordingly.

Like the Federal Skilled Worker Program, most immigration options require proof of funds based on a 6-month LICO. Keep in mind, I have done my best to show the correct figures, but the values I have presented here are not the official numbers. Consequently, consult with other sources as well.

Comparing 12-month LICO over the years

The following table reflects the 12-month LICO from 2018 to 2021. Of course, this is an effort to show you changes in LICO over the years.

Size
of Family Unit
2018 2019 2020 2021
one person $24,950 $25,338 $25,921 $26,439
two persons $31,062 $31,544 $32,270 $32,915
three persons $38,186 $38,780 $39,672 $40,465
four persons $46,362 $47,084 $48,167 $49,130
five persons $52,584 $53,402 $54,630 $55,723
six persons $59,304 $60,228 $61,613 $62,845
seven persons $66,028 $67,056 $68,598 $69,970
If more than seven persons, for each
additional person, add
$6,722 $6,828 $6,985 $7,125

 

Comparing 6-month LICO over the years

The following table reflects the 6-month LICO from 2018 to 2021. Of course, this is an effort to show you changes in LICO over the years.

Size
of Family Unit
2018 2019 2020 2021
one person $12,475 $12,669 $12,961 $13,220
two persons $15,531 $15,772 $16,135 $16,458
three persons $19,093 $19,390 $19,836 $20,233
four persons $23,181 $23,542 $24,084 $24,566
five persons $26,292 $26,701 $27,315 $27,861
six persons $29,652 $30,114 $30,807 $31,423
seven persons $33,014 $33,528 $34,299 $34,985
If more than seven persons, for each
additional person, add
$3,361 $3,414 $3,493 $3,563

How to realize income in comparison to LICO

The best way to realize your income to compare it with LICO is to look at your Notice of Assessment. Of course, a typical NOA is confusing. However, your answer is line 150 of the NOA. Regardless, in some immigration options, you could refer to your earnings statements or T4. Nonetheless, consult with an accountant for correct figures. Also, ask a practitioner if using these sources are useful. Finally, if you are using LICO for settlement funds, your account balance is important rather than your income.

Questions about LICO 2021 or immigration matters to Canada

If you have any questions about LICO 2021 or other issues related to immigration, fill out the following form. Of course, we will get back to you as soon as we can. However, if the question is case-specific, we advise you to book a consultation session.

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    We extracted the LICO table from the IRCC website.

    Updated Dec 15, 2020

    Of course, you may click here to explore your 2021 immigration options.

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    Al Parsai, MA, DTM, RCIC
    Regulated Canadian Immigration Consultant
    Ashton College Instructor – Immigration Consulting
    Author – 88 Tips on Immigration to Canada

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    Disclaimer:
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    Al Parsai

    Al Parsai is a Regulated Canadian Immigration Consultant (RCIC) in Toronto, Canada. He also teaches the official immigration consulting courses at Ashton College in Vancouver, Canada. Al who holds a Masters degree from Yorkville University is a member of ICCRC and CAPIC organizations. Al, the CEO of Parsai Immigration Services, has represented hundreds of applicants from more than 30 countries to the immigration authorities since January 2011.

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