Canada: keep receipts and other business records for six years from the end of the last tax year they relate to. For an individual that is the calendar year, so 2020 records are kept through 31 December 2026. File late and the six years run from the date you filed. US: usually three years after filing.
The CRA rule: six years from the end of the tax year
The CRA's wording is: "Generally, you must keep all required records and supporting documents for a period of six years from the end of the last tax year they relate to" (CRA, where to keep your records and for how long). The Income Tax Act says the same thing in subsection 230(4): records are kept "until the expiration of six years from the end of the last taxation year to which the records and books of account relate" (Income Tax Act, s. 230).
Three details decide your date:
- The clock starts at the end of the tax year, not on the receipt date. A receipt from 3 January 2020 and one from 30 December 2020 both belong to the 2020 tax year, so both are kept through 31 December 2026.
- What "tax year" means depends on who you are. The CRA says it is the calendar year for individuals (including sole proprietors) and the fiscal period for corporations.
- "Last" tax year matters. A record that supports more than one year, such as a vehicle purchase you claim capital cost allowance on for years, is counted from the last year it relates to.
The CRA lists the same general retention rule under the Excise Tax Act (GST/HST), the Employment Insurance Act, the Canada Pension Plan, the Excise Act, 2001 and the Air Travellers Security Charge Act. RC4022 repeats it for GST/HST: keep sales and purchase invoices "for six years from the end of the year to which they relate" (RC4022).
Worked examples
| Situation | Tax year ends | Keep through |
|---|---|---|
| Sole proprietor, 2019 receipts, return filed on time | 31 Dec 2019 | 31 Dec 2025 |
| Sole proprietor, 2019 receipts, return filed late on 3 March 2022 | 31 Dec 2019 | 3 Mar 2028 |
| Corporation with a 31 March year end, fiscal year ending 31 March 2021 | 31 Mar 2021 | 31 Mar 2027 |
| Receipt for equipment you still own and depreciate | Last year it relates to | Six years after that year, at least |
When you keep records longer
The CRA's own list of exceptions (source), trimmed to the ones a small business owner is likely to meet:
- Late-filed return. "If you file an income tax return late, you must keep your records for six years from the date you file that return." The Act puts it the same way in subsection 230(5).
- Long-term property and history. Records about long-term acquisitions and disposals of property, the share registry, or other history that would affect the sale, liquidation or wind-up of the business are kept indefinitely.
- Objection or appeal. Keep everything needed until the latest of: the dispute is resolved, the time for any further appeal has passed, or the six years are up.
- The CRA asks. A CRA official can tell you, in person or by registered mail, to keep records longer than six years.
- An unfiled GST/HST return. If you never filed a GST/HST return for a period that ended more than six years ago, you still have to file it and keep the records that support it.
- A business that ends. An unincorporated business keeps its records six years from the end of the tax year it ended. A dissolved corporation keeps its records for two years after the date of dissolution.
- Vehicle logbooks. If you use a full-year logbook as a base year for the simplified method, the CRA says that logbook is kept six years from the end of the tax year it was last used to establish business use (motor vehicle records). More in our CRA mileage rate 2026 guide.
Calculator: when can this record go?
Example values are filled in: a self-employed person's 2020 records, return filed on time. Change them to yours. The calculator assumes a corporation's fiscal year ends on the last day of the month, and uses the standard filing deadlines, without public holidays or one-off extensions.
Scanning receipts and throwing out the paper
The CRA accepts records kept on paper, on paper and later converted to an accessible electronic format, or in electronic format from the start. Records that began on paper stay on paper "unless they are saved in acceptable microfiche, microfilm or electronic image formats" (CRA, acceptable format and imaging).
For the image to stand in for the paper, the CRA says it must be an accurate reproduction meant to take the place of the paper, give the same information, and not obscure significant details through limits of resolution, tone or hue. Then:
- If you imaged paper records to the Canadian General Standards Board (CGSB) standard, "the images become the permanent records. You can therefore destroy the imaged paper item."
- If your business cannot meet the CGSB standard, it has to keep the original documents.
- The CRA adds that a business using commercial software to scan its paper records should make sure the scans meet the latest national standard.
Information Circular IC05-1R1, Electronic Record Keeping lists what an acceptable imaging program involves (paragraph 27): written confirmation that imaging is part of normal business, documented procedures, a log of what was imaged and when and whether the paper was destroyed, an index, legible images, quality control, and equipment to view them. It also says records that start out electronic, such as an emailed invoice, must be kept electronically (paragraph 39).
Practical reading: an emailed PDF invoice is already the original, so keep the PDF itself. For paper, a clear photo is better than a faded slip, but whether you can shred the paper depends on meeting the CGSB standard. When in doubt, the CRA says to get legal advice before destroying paper.
Where records must be kept
At your place of business or your residence in Canada, unless the CRA gives written permission to keep them elsewhere. The CRA says records kept outside Canada and accessed electronically from Canada are not considered kept in Canada. If the CRA permits electronic records outside Canada, they must be made available in Canada in a format CRA software can read (source). The CRA also says to store backup copies, preferably at a site in Canada other than your business location (your responsibilities).
If you run more than one business, the CRA also says to keep separate records for each one (business records). Our guide to using one card for two businesses covers the awkward part of that.
Destroying records early: Form T137
To destroy records before the retention period ends, you first need written permission from the CRA. Fill in Form T137, Request for Destruction of Records, or apply in writing to your tax services office. The CRA says destroying paper or electronic records without its permission can lead to prosecution, and that its permission covers only records required under laws the CRA administers, not provincial or municipal ones.
The US rule: usually three years
The IRS ties retention to the period of limitations for the return. Its list (IRS, how long should I keep records):
| Situation | Keep records for |
|---|---|
| Normal case | 3 years |
| You file a claim for credit or refund after filing | 3 years from filing or 2 years from paying the tax, whichever is later |
| You left out income that is more than 25% of the gross income shown on the return | 6 years |
| You claim a loss from worthless securities or a bad debt deduction | 7 years |
| You did not file, or filed a fraudulent return | Indefinitely |
| Employment tax records | At least 4 years after the tax is due or paid, whichever is later |
The years run from when the return was filed, and "returns filed before the due date are treated as filed on the due date." For calendar-year filers that is 15 April, moved to the next business day if it falls on a weekend or legal holiday (IRS, when to file). Records connected to property are kept until the period of limitations expires for the year you dispose of the property.
Every receipt, kept and findable for as long as it matters
BlueAnchor stores each original read only with a SHA-256 fingerprint, keeps each business in its own books, and keeps emailed invoices as the files they arrived as. It is an iPhone app with a web desk, not yet released. See pricing.
Questions
How long do I keep receipts for the CRA?
Generally six years from the end of the last tax year the receipt relates to. For an individual the tax year is the calendar year, so a 2020 receipt is kept through 31 December 2026. If the return was filed late, keep the records six years from the date you filed it.
Can I throw out the paper receipt after I scan it?
The CRA says imaged paper documents become the permanent record, and the paper can be destroyed, if the imaging meets the Canadian General Standards Board standard. If your imaging cannot meet that standard, the CRA says to keep the originals.
Can I destroy records before six years are up?
Only with written permission from the CRA. Ask with Form T137, Request for Destruction of Records, or in writing to your tax services office. The CRA says destroying records without permission can lead to prosecution.
How long does the IRS want me to keep records?
Usually three years after you filed, with a return filed early treated as filed on the due date. It is six years if you left out income of more than 25% of the gross income shown, seven years for a worthless securities loss or bad debt deduction, and indefinitely if you did not file or filed a fraudulent return.
Can I keep my business records on a server outside Canada?
Records must be kept at your place of business or residence in Canada unless the CRA gives written permission to keep them elsewhere. The CRA says records kept outside Canada and accessed electronically from Canada are not considered kept in Canada.
Related: what a receipt must show for the CRA, and running a sole proprietorship and a corporation at the same time.
Sources
- CRA, Where to keep your records, for how long and how to request the permission to destroy them early, date modified 2026-08-03
- Income Tax Act, section 230, consolidation current to 2026-09-21
- CRA, Acceptable format, imaging paper documents and backing up electronic files, date modified 2026-08-03
- CRA, IC05-1R1 Electronic Record Keeping, date modified 2020-02-24
- CRA, Your responsibilities and the requirements associated with records, date modified 2025-06-17
- CRA, Business records, date modified 2026-08-31
- CRA, Motor vehicle records, date modified 2026-08-31
- CRA, Form T137 Request for Destruction of Records, date modified 2025-12-04
- CRA, RC4022 General Information for GST/HST Registrants, date modified 2026-01-07
- CRA, Important dates for individuals, date modified 2026-09-17
- CRA, When to file your corporation income tax return, date modified 2025-05-26
- IRS, How long should I keep records?, last reviewed or updated 30 June 2026
- IRS, When to file, last reviewed or updated 22 May 2026
General information, not tax advice. BlueAnchor does not file taxes. Check your own situation with the CRA or IRS, or a qualified professional.