--- title: "Canada Growth Incentive: $15M Tax-Free Capital Gains" url: https://www.everstonecpa.com/tax-update/canada-growth-incentive description: "The Canada Growth Incentive would exempt up to $15 million of gains on new shares of qualifying companies. Most service firms are excluded. Check yours." type: tax-update updated: 2026-11-06 summary: "The Canada Growth Incentive would let a Canadian-resident individual exempt up to $15 million of capital gains per qualifying business, on shares issued from 5 November 2026 through 2036. The company must be a Canadian-controlled private corporation with $100 million or less in assets when the shares are issued, the shares must be bought directly from the company for cash or work, and they must be held 36 months." faq_count: 3 publisher: EverStone CPA Inc., a Chartered Professional Accountant firm registered with CPA British Columbia and CPA Alberta service_area: British Columbia, Alberta, Ontario and Manitoba language: en-CA contact: info@everstonecpa.com · https://www.everstonecpa.com/book-online --- [Home](https://www.everstonecpa.com/) [Tax updates](https://www.everstonecpa.com/tax-updates) [Budget 2026](https://www.everstonecpa.com/tax-update/federal-budget-2026) Canada Growth Incentive Capital gains # Canada Growth Incentive: up to $15 million of tax-free gains By EverStone CPA · Updated November 2026 A new capital gains exemption aimed at founders and early investors in growing Canadian companies. It is generous, but the list of excluded businesses is long. **Quick answer:** The Canada Growth Incentive would let a Canadian-resident individual exempt up to $15 million of capital gains per qualifying business, on shares issued from 5 November 2026 through 2036. The company must be a Canadian-controlled private corporation with $100 million or less in assets when the shares are issued, the shares must be bought directly from the company for cash or work, and they must be held 36 months. **Raising money or issuing shares?** We check whether your company and the share issue qualify before the shares are issued, not after. [Get My Fixed Quote](https://www.everstonecpa.com/book-online?service=advisory#enquiry-form) **Announced, not yet law** · Shares issued from 5 November 2026 to 2036 (proposed) This has been announced but is not yet law. It can change or be withdrawn. ## Businesses that do not qualify Professional practices (including accountants and lawyers), consulting, real estate, food and accommodation, arts and entertainment, farming, fishing, forestry, mining, financial services, insurance, utilities and franchised businesses are excluded. A technology, manufacturing or product company is the typical fit. ## The main conditions Canada Growth Incentive conditions | Condition | Requirement | | Who | Canadian-resident individual, 18 or older (not a trust) | | Shares | Issued by the company directly, for cash or employment services | | Company size | CCPC with $100 million or less in assets at issue | | Holding period | At least 36 months | | Limit | $15 million of gains per individual per business | ## Example Nadia invests $200,000 in new shares of a Canadian software company in 2027 and sells them in 2032 for $2.2 million. If the company and shares qualify, the $2 million gain could be exempt. The alternative minimum tax still counts 30% of the gain, so a large exempt gain can trigger some minimum tax. It cannot be combined with the [lifetime capital gains exemption](https://www.everstonecpa.com/tax-update/lifetime-capital-gains-exemption) on the same shares. Whether this applies to you depends on your year-end and structure; [ask about your own situation](https://www.everstonecpa.com/quick-question) and a CPA replies by email, usually the same business day, free. ## Common questions **How much can the Canada Growth Incentive exempt?** Up to $15 million of capital gains per individual per qualifying business. **Does it apply to existing shares?** No. Only shares issued from 5 November 2026 through 2036. **Does my accounting or consulting firm qualify?** No. Professional practices and consulting are excluded. ## Where this comes from Budget 2026 was tabled on 5 November 2026. Figures on this page are from: - [Thor — 2026 Federal Budget: key tax measures](https://www.thor.ca/blog/2026/11/2026-federal-budget-key-tax-measures/) - [BLG — Federal Budget 2026: tax measures](https://www.blg.com/en/insights/2026/11/federal-budget-2026-sovereignty-strategic-investment-and-tax-simplification) - [RBC Wealth Management — Federal budget 2026 overview](https://www.rbcwealthmanagement.com/en-ca/insights/federal-budget-2026-an-overview-of-key-measures-that-may-impact-you) **General information, not tax advice.** Budget measures are proposals until enacted and can change. Before deciding anything, [send an enquiry](https://www.everstonecpa.com/book-online?service=advisory#enquiry-form). [Federal Budget 2026: what changes for small business owners](https://www.everstonecpa.com/tax-update/federal-budget-2026) [Small business investment rollover: more time to reinvest](https://www.everstonecpa.com/tax-update/small-business-rollover-2027) [SR&ED now covers regulatory testing and patent costs](https://www.everstonecpa.com/tax-update/sred-expansion-2026) --- Source: https://www.everstonecpa.com/tax-update/canada-growth-incentive Prices: https://www.everstonecpa.com/pricing · Contact: info@everstonecpa.com · https://www.everstonecpa.com/book-online